EVER HAD IT SO GOOD?

03-10-2006

Never mind the old saw that money can't buy you happiness - these days, it can't even buy you as much as it used to even though we're all supposedly better off. New research carried out in Birmingham suggests the government really is cooking the books.

This week in Bournemouth, David Cameron will use the Tory party conference to reinforce his belief that “well-being” should be at the heart of politics. Money, he says, can't buy happiness.

That's all very well, but it doesn't necessarily sound convincing coming from an Old Etonian toff.

There's also the problem that even the least materialistic amongst us needs a certain income just to live - we all have to pay rent or a mortgage, council tax, food bills, lighting and heating etc.

If official indicators are to be believed, that basic struggle should be easier for our generation than any in history.

Figures from the Office of National Statistics - which form the basis of government policy - show that Gross Domestic Product has been rising steadily for the last quarter of a century. In other words, the economy has flourished.

There's even better news to come when we read that household disposable income has accelerated at an even faster pace. So, as a society, we're creating more wealth, and as individuals we're getting a greater share of it. Fantastic.

So why is it that many people don't feel wealthy at all?

That the daily grind has, if anything, become harder?

In the '60s and '70s, for example, it was possible to buy a house and run a car on one income - these days it often takes two.

New research due to be presented this week by the pressure group Localise West Midlands (www.localisewestmidlands.org.uk) suggests a reason.

They look at the United States, which has followed a similar pattern to Britain.

In the US, despite an apparent two-decade boom, real average earnings (ie when inflation is taken into account) have actually fallen. So the average Joe (or Jo) on the street, despite contributing to an economic success story, actually has declining spending power.

This difficulty has been masked by the falling prices of some consumer goods, but can't disguise how hard it is to cover the basic living costs.

We'd love to tell you what this means for Britain, but the truth is we can't. Localise West Midlands say the same figures are not available in this country, nor is there any regional breakdown. And that really is the point.

They say until we know what workers can really afford from their weekly pay packet we can't sensibly set pay rates for the public sector or the minimum wage. The truth is that behind Gordon Brown's economic miracle, there are more than a few doubters who suspect that all is not as it seems.

LWM kick off their campaign on Saturday. In the meantime we'd welcome an answer to the conundrum of why, if we're all better off, it doesn't feel like it.

I suspect David Cameron wouldn't mind a few answers too.