The cost of the downturn

A useful piece of research in today’s Mail:

“The financial crisis has slashed an average of £60,000 from each family’s wealth over the past year, it has been claimed.

Sliding equity prices and dramatic falls in property values have shaved more than 18 per cent off savings and assets, according to estimates by Capital Economics.

That is the equivalent of an average £60,000 fall in the wealth of every household in the country and adds up to £1.5trillion. The 2008 plunge exceeds an entire year of British economic output.”

Such numbers could prove politicaly costly for Labour, too.  The more people understand what they’ve already lost as a result of the downturn – and experience further losses in 2009 – the more likely we’ll see the polling payoff described by James yesterday.  Meanwhile, George Osborne’s defence of savers should gain extra political bite.