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HENRY FORD said that it was customers, not employers, who really pay workers’ wages; employers merely look after lululemon outlet oregon cash. Ford also thought economies did best when workers could afford to buy lululemon sale outlet goods that they make. These old American ideas do a good job of explaining Britain’s consumer slump. Digging into a typical household’s accounts suggests when it might end.Spending by private households is lululemon outlet chicago biggest slice of GDP, accounting for 63% in 2012. It has been remarkably weak, even by comparison with previous recessions (see chart). To see why, start with lululemon outlet seattle accounts of a typical household in 2012. On lululemon clearance outlet top line are median pre-tax wages of ￡37,000 ($56,000). Tax and national insurance take ￡9,400 leaving disposable income of ￡27,600. Next a host of unavoidable bills have to be paid. Borrowing, mainly mortgage payments, drains ￡7,700. With council tax, utilities and petrol costs running to ￡5,000 a year, lululemon outlet canada average Briton was left with close to ￡15,000.

During lululemon orlando outlet boom years income and outgoings moved in ways that made household finances glow. Average weekly earnings grew at 4% a year between 2001 and 2007, while prices went up by just 2% a year. Workers’ buying power increased steadily and strong private consumption underpinned rising GDP. But in 2008 lululemon outlet washington numbers flipped. Since then pay increases have been 2% a year, price increases above 3%. Workers’ cash buys less and less.A glance at Britain’s strong employment figures might suggest that wages should recover some of their old vigour soon: surely firms hiring more must pay more? But strong jobs numbers do not always translate into better pay. Over lululemon outlets long run wages tend to move in line with productivity. In Britain, growth in output per worker is low relative to other countries and to other recessions. Whereas lululemon outlet stores productivity slump is puzzling, lululemon factory outlet puny wage increases are not.