Earning Money: Working Life

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One of the reasons for the increasing disparity of wealth is the change on the rate of income taxes. In the 60s the basic tax was 40% and nowadays it's only 20%. The top rate has fallen as well from 98% to 40% in that same period. It doesn't mean that's how much is deducted from people's income. Those who earn twice the average have about 25% of their income deducted, while those who earn half the average have very little of their salary deducted. The organization in charge of collecting taxes is the 'Inland Revenue'. Employees' taxes are deducted from their pay cheque, so they don't have to worry about it. This system is called PAYE which means 'Pay As You Earn'.

Money and Happiness

There's an old British saying which states 'Money Doesn't Buy Happiness'. Nowadays, this saying is less and less believed but, in fact, it is mostly true. In the last decades, life expectancy has gone up by a decade, disposable income (which is the money left after having paid for the basic necessities) is four times greater and foreign holidays and car ownership is ten times greater. On the other hand, divorces have more than doubled, reported crimes have increased by a factor of ten, antidepressant prescriptions have more than tripled, and today a 25 years old is four times more likely to be clinically depressed than in the 1950s.

Research on 'happiness studies' has shown there's some connection between wealth and happiness. In general, rich are happier than poor. But there's a limit because only poor get happier if they get richer. Once you're rich, how rich you're doesn't make a difference in your feeling of well-being.

Finance and Investment

Britain is still one of the wealthiest places in the world and London is still one of the centers of the financial world. The FTSE (Financial Times Stock Exchange), settled in London, is one of the main indicators of world stock market prices.

British preference for continuity and tradition and emphasis on personal contact are the qualities that attract high finance. When people want to invest money, what matters is an atmosphere of stability and personal trust. As regards stability, many financial institutions in Britain have an uninterrupted history; some even have directors of the same family that started them. As regards to personal trust, British reputation of secrecy and discretion is an advantage in financial dealings.

Most British people are unaware of 'high finance', for them it's just a matter of the cash they have in their pockets or bank accounts.

An indication of the importance of banks in British people's lives is how much they dislike them. People are always grumbling about the charges they impose.

One clear improvement is bank's opening hours. Two decades ago they used to open from 10 to 4, Monday to Friday only. Nowadays, they open earlier, stay open later, and also open on Saturday mornings.

The Lloyds TSB, HSBC, Barclays bank and the Royal Bank of Scotland (RBS) are the banks which have branches in almost every city in Britain.

Currency and Cash

British currency is the pound sterling, also called a quid, and its symbol is . There are 100 pence in a pound.

Before 1971 British people used the LSD system. There were 12 pennies in a shilling, and 20 shilling in a pound and it was written like this: 3 12s 6d. The name of this system comes from the Latin names of these currencies. (Librae, Solidi, Denarii)

Money shows British conservatism. When the LSD system was replaced, people were not enthusiastic about what they called 'new money' and for a long time it was common to hear the question 'what's that in old money?’ The one pound coin, which was introduced in 1983, was very unpopular. People were sad to see the end of the one pound note and they said a mere coin didn't seem to be worth as much. Scotland has different banknotes that are perfectly legal in the rest of the UK, but banks and shops are not obliged to accept them, and people don't have the right to demand change in Scottish banknotes. Since 1991, the Euro has the same status as Scottish banknotes, but most people don't accept them.

Spending Money: Shopping

The Price clearly marked.

The British aren’t adventurous shoppers. They like trustworthy products and buy brand-name goods when it’s possible; and it is also better if the price is clearly marked (they are not keen on haggling about the price).

The shabbiness of shop-window displays.

Visitors from northern European countries are sometimes surprised by the shabbiness of shop-window displays, even in the busiest areas. But this is not a sign of economic depression. It is just that the British do not demand art in their shop windows. On the positive side, the visitors are also surprised by the variety of shops. Most shops are chain stores, but there is much individuality too. Independent shop owners feel no need to follow conventional ideas about what a particular shop does and doesn’t sell.

Everything in one place

In general, the British people don't think about doing shopping like a fun activity, but some of them actually feel that way about it. The majority said that they avoid go into shop, they grab what they want and get out again quickly as they can.

In supermarkets you can get everything in one place in the shortest time possible. It may also explain the boom in online shopping; you don’t have to bother of ‘going shopping’ at all.

All supermarkets now sell alcohol, and many other items traditionally found in chemists and newsagents. The big ones are called hypermarkets; they sell clothes, shoes, kitchen utensils and electrical goods.

Out of town

The area in town where the local shops are concentrated is known as the high street (the American equivalent is ‘Main Street’). British high streets have felt the effects of the move towards out-of-town shopping.

The small high streets have often survived by adapting. Shops have tended to sell cheap goods (for people who are too poor to own a car and drive out of town). Many have become charity shops (selling second-hand items and staffed by volunteers) and