UK’s economic growth is dangerously driven by private borrowing

From James Meadway of New Economics Foundation

Average real earnings growth

Average real earnings growth 1979-2013 UK

Most of us in UK are getting poorer every year since 2010, but economic growth has been driven by rising consumer spending. He offered 2 possible reason: rising inequality and borrowing.

… four out of five jobs created under Osborne have been in sectors where average wages are less than a quarter of average earnings. Just under 80% are in London and most are involuntary part-time, zero hours or enforced self-employed: the flexible labour market in action.

Seumas Milne, Guardian

Unsecured lending and retail sales

Unsecured lending and retail sales 2007-2013 UK

Economic growth (retail sales) has been dangerously sustained by increasing level of borrowing (unsecured lending).