Economic Cycle

I have recently been reminded about a video by Ray Dalio that explains how the economy works and watched it again. It explains in easy to understand language how the economy works and was put together a few years ago to explain what happen to the economy during the last recession.

Ray Dalio is an Hedge Fund manager and founder of the investment firm Bridgewater he is one of the wealthiest people in the world and therefore he is a person who should be listened to. People have a look at the video and let me know what you think. read more

Earnings

The average weekly earnings of a person living in the UK is currently £503 per week or £26,156 per year this would give a net salary of £20,873.28 with deductions of Tax £3,111.20 and National Insurance  £2,171.52. Some would call this the salary of the Normal Person who will work 37-40 hours a week. This is compared to the salaries of the Premier league football stars who can earn anything from £20,000 per week to £400,000+ per week giving a salary of somewhere in between £1,040,000 and £20,800,000 it is however difficult to decide how much time a footballer spends working in an average week as it is not just two ninety minute matches a week for the season. It is sometimes said that the high salary is required due to the short working life of the footballer but when you compare the normal person’s salary it would take them almost 40 years of their working life just to get the lower end of the Premier league footballer’s yearly salary. It could be debated whether this is justifiable or not but it is said that the Premier league is one of the riches football leagues in the world. Similar salaries will also be paid to the stars of Spanish BBVA La Liga Table, the German Bundesliga and the Italian Serie A. read more