Good times on credit

It has become something of a statement of the obvious to say that over the past decade or so the material standard of life has increased by leaps and bounds. For example, ownership of material possessions, such as mobile phones, ipods, etc, has increased tremendously. That much cannot be denied.

But looking at it now, after the credit crunch, it seems all this prosperity has been achieved not by high paying, quality jobs, but on credit. Unprecendented levels of consumer credit, which have become clear since the crunch, are evidence of this.

With quality jobs shifting to low wage economies and being replaced by McJobs, it seems permanently low interest rates have been one way for the Western governments to ensure living standards do not fall for their citizens.