The Resolution Foundation has decided that getting a headline or two is more important than actually telling us anything of use. They’ve a report out telling us that pensioners are just livin’ that dream these days. As much as £100 a week on booze and meals out!
Well, yes, except:
Pensioners now spend an extra £100-a-week on drinking and eating out, report finds
Not that £100’s a lot these days. You’d not even get the booze allowance of 14 drinks each in London for a couple. But, you know:
Partying pensioners have been unmasked as a generation of big spenders in a report which reveals that they spend more than £100-a-week on alcohol and eating out than their predecessors.
At pub prices, 20 drinks in the week. What an earlier generation knew of as “lunch”.
In a report published today by the Resolution Foundation entitled, An Intergenerational Audit for the UK: 2019, researchers found that between 2001 and 2002, the average Briton aged 65 and over spent £283 on such “fun stuff”. However, this figure rose by £105 in 2017-18 to £388. While experts acknowledge that the rate of inflation has impacted the increase in figures
Well, no, inflation is all the figures. In fact, in real terms, pensioners are spending less than their predecessors.
Current data is only available till 2018. In 2018, the relative price worth of £285.00 from 2001 is:
£463.00 using the retail price index
£402.00 using the GDP deflator
Current data is only available till 2018. In 2018, the relative wage or income worth of £285.00 from 2001 is:
£450.00 using the average earnings
£475.00 using the per capita GDP
Current data is only available till 2018. In 2018, the relative output worth of £285.00 from 2001 is:
£534.00 using the GDP
Or, another measurement:
UK Inflation Rate, £100 in 2001 to 2018.
Cumulative price change 61.12%
So, the actual finding of the Resolution Foundation report is “oldies spend less in real terms on fun times than before” and yet what they’ve told everyone is “oldies spend more on fun times than before”.
Which is about all we need to know concerning the Resolution Foundation, isn’t it? They’re either ignorant of the most basic economics or deliberately economic with the actualite. Bugger ’em therefore.