By Hanna Burns: Columnist
Prices hike, inflation creeps day by day and ‘cost of living crisis’ works its way into common conversation.
Security boxes in supermarkets no longer protect pocketable expensive goods such as razors, but now also the humble cheddar cheese as savings and earnings get squeezed. This is the new and current reality in the UK, whilst the inflation rate has been sinking since its 11.1% peak in October 2022, prices are still rising.
As the BBC reported, there was a 3.2% rise in March 2024, although this is ‘the lowest rate since September 2021’, the compounding effect of the economic situation has seen a rise in use of foodbanks (up 37% from 2022 to 2023).
And a noticeable pinch in the savings of millions across the UK. With real wages, and price purchasing power beginning to shrink and evaporate.
This is not only a UK economic phenomenon, but a global one. Clocking in at 4% Global inflation is still on the rise, although the IMF has predicted it to fall to 2.8% by the end of this year.
No doubt these figures are a hangover from the global pandemic, amongst a wealth of other factors such as ongoing conflicts, and of course, for the UK, the after-waves of Brexit.
So, as things get tougher for the many, an eye-catching headline popped up in the Guardian:
“Taylor Swift among 141 new billionaires in ‘amazing year for rich people’”.
Perhaps even more breathtaking was the subheading: “[The billionaires’] combined assets of $14.2tn are more than the GDP of every country except China and the US”. Stunningly, despite the general global economic pressures, the outlook only seems to be looking better and better for the top 1%. Better is even perhaps an understatement.
The gap is widening at a rate of knots. The 2000+ billionaires seem to have dosh that anyone would struggle to spend in a lifetime.
The world is widening, the discrepancies staggering. This trend is accelerating, numerically undeniable, physically unignorable, palpable in culture and society.
Whilst an examination of numbers is interesting, and perhaps damning, it is also interesting to think of the social effect that this drastic wealth divide has on the population as a whole. Is our exposure to astonishing wealth making us also feel worse off?
The social media effect – feeling worse off.
There is no doubt that for many people, feeling the squeeze is real. The pennies clinking in the pockets, a source of anxiety. But what about the psychological effects of seeing others with more? Technology and media researcher Dana Boyd made the assertion that ‘all status is ultimately local – people compare themselves to those they live near [to]’. Effectively, she suggests that comparing people within your vicinity, your neighbours, the people you see and walk past every day affects your own self image, and perception. This applies not only to status, but also to financial standing.
So, let’s turn our attention back to that feeling of the coins i the pocket, the change banging against your leg, or pressing out through your jeans (depending on the fit you choose!). What else is in that pocket, weighing squarely there?
Your phone.
“People’s understanding of prosperity is shaped by what they see around them.”
Wealth.
Is it all in the Mind?
Snug with the coins and fluff and receipt from Tesco’s. Your phone could also be contributing to your overall financial perception of your life, and the world in general.
Or, more specifically the apps that shine fixedly at you, black, blue, pink and orange, X (formerly Twitter), Tiktok, (which incidentally will soon be no more for a large proportion of those in the West, at least in the USA) Instagram and Facebook.
People post the best things, their prettiest holidays and widest smiles. And there is everyone and anyone on the internet. No matter where you lie on the wealth-o-meter, nearly everyone has access to social media in some shape or form. In the UK 82.8% are social media and nearly 100% are internet users.
With the vast majority of the population on social media, we effectively carry access to seeing everything about everyone with a few taps and swipes of a finger. Boyd’s assertion that “People’s understanding of prosperity is shaped by what they see around them.” can now be brought back into play when considering this new hyper-online society, as we bring social media into the equation.
This “neighbourly” comparison is now not solely confined to Peggy at number 76, or the local group of lycra-d runners on the street you walk down. The lives of others are ubiquitous. Omnipresent in your pocket.
It can be easy too, perhaps even natural to compare. And, considering the global economy in this context, with the rise in income inequality and disparity, this impact is multiplied tenfold. Not only do people have less buying power, but they feel like everyone else around them has more.
This is not only confined to celebrities, but also friends, family, acquaintances. Seeing Taylor Swift private jetting from location to location may sting, but equally seeing holidays, new clothes or cars, even a nice meal out, could all have a ripple effect on your view.
As we ‘tr[y] to keep up with the 1% or celebrities’, plastering a life online, we increasingly alienate ourselves and each other from real life and realities.
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The rich are getting richer, and those who are not rich are subject to this upwards exposure almost unwillingly.
It is interesting to note here that there is a ‘psychological asymmetry between upward and downward comparisons [in wealth]: upward comparisons prevail over downward ones’ (Boyce). In summary, we are more psychologically likely to compare with people who are richer, and have more.
Another study, focusing more specifically on comparisons of wealth through social media platforms found that people experienced ‘negative feelings’ from upward comparisons, and even more tellingly suffered from ‘more debt, lower savings, higher stress levels, and lower satisfaction with their own situation’.
The economic sting of the pandemic coupled with its being a catalyst in the looming rise of the presence of social media in our lives has caused a perfect cocktail of effects. The rich are getting richer, and those who are not rich are subject to this upwards exposure almost unwillingly. Given that ‘economic inequality reduces one’s perceived relative income and wealth’. It’s no surprise that people are feeling put out economically.
As put by Quart, ‘overall [we] may live better than mediaeval aristocrats could dream of, but that means nothing when oligarchs live in the neighbourhood next door, flaunting their luxurious homes’ . Whilst many many elements of modern life in the UK are better now than they were, it certainly does not feel that way, and the pinch of the recession is beginning to bring these problems increasingly into focus.
Perhaps there is not much conclusion to be had by this discussion, Times are changing ,the economy, the realities, the social structure and the lens through which we see the world (minus the filters). What is important to remember, however, is that money in the modern times is not only a matter of class, the things we have or of the £s that stack up in our banks, but also a matter of perception.
Whilst we feel the squeeze, make sure to remind yourself not to look and compare with others. Firstly, it may be someone posting their life through rose tinted glasses. And secondly, comparing upwards, whether it be with closer connections or the mind-bogglingly rich billionaires, will only make you feel worse about where you really are.
Hannah Burns
Hannah Burns is a freelance writer who works doing a bit of everything, from copy to creative writing. She's particularly interested in what makes humans tick, the behaviour, beliefs and lives of others. In her spare time she works on her blog, goes to funk music events and learns Spanish.
