In the Metro newspaper October 26th under the title of "Business Bites" two contrasting items demonstrated the difference between capital money and wages money.
"The boss of Lloyds Banking Group was bullish about Britain's economy as the lender revealed pre-tax profits more than doubled to £1.95 billion in the third quarter. Antonio Horta-Osorio said employment was at a record high and the weaker pound would help exports."
That is money loaned and returned with profit. Capital result.
The adjacent item read.
"Credit card borrowing rose again last month amid mounting fears of a consumer debt boom. The 7.8 per cent year on year rise compared with 7.3 per cent in August, says a report by UK Finance. Annual growth in overall consumer credit edged up from 1.4 to 1.5 per cent in September."
Wages moneys don't return profits. Wages being needed for consumer purposes and not being enough necessitates many workers to borrow.
Are the mounting fears of a consumer debt boom the same for the bosses as they are for the workers? I'll leave you to work that one out.
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