We're getting poorer... :(

It is big news really, but everyone has come to expect it of late.  For many many years we were all getting richer.  We can afford things our parents couldn't, and they more than their parents, for decades disposable incomes have steadily risen.  Well not any longer.  The impact of the recession & government spending cuts is hurting the disposable incomes of the middle classes significantly, but most are worse off to some degree.  Asda tracks the average income trends and spending trends and has just reported that on average we are now £6 poorer each week than we were a year ago. 

Could you live with £6 less a week.  I guess probably you could.  That's 2 very cheap pints.  So probably it is not pushing many to starvation rations, but if we all have £6 less then we are all spending about £6 less (unless we're getting further and further into debt*), and what impact is that having on all the businesses around us especially those competing for our discretionary spend.

* While I accept that given most of you are students your debt pile is probably growing, currently as a nation we are reducing our debt levels i.e. paying off loans, saving money - this can be quite problematic - we're saving because we are nervous about our financial security, but in so doing, we're suppressing the economy.  Not spending so much will drive more retailers etc etc to insolvency - rather causing economic issues and uncertainty.  If we all went out and spent our life savings the recession would be over!