[Chrysalis]

The correction is a increase in salaries that exceeds increases in living costs. I acknowledge tho that is very diffilcult for a pure and simple reasons.

Shareholders and owners of companies expect growth that exceeds inflation.
Money is a limited supply.
It is impossible for companies to post increased profits and the average adult to also get increased salaries exceeding inflation, one or the other has to lose out on a overall basis. eg. companies could give out 20% wage increases next year but then they need to sell their products for more to maintain profit margin as a result, result is higher inflation.

So to me the solution is that profit margins need to shrink, but its one that will never happen in a unregulated capitalist country. Labour's credit economy only masked this problem, people were spending money they didnt have and as a nation we have been getting poorer in real terms probably for at least 10 years as a minimum.

So the only way out really is another credit fuelled boom, the problem will still exist but it wont appear that way and people will be happier again for a temporary period.

Or we could get lucky and the following all start occuring.

house prices drop to sustainable level.
imports suddenly get cheaper, which should mean lower retail price for imported stuff.
Uk has a technology breakthrough and sells it for massive premium to other countries giving extra income not from taxpayers. Similiar to thatcher getting benefit of north sea oil that funded her tax cuts.

I think outsourcing over a number of years and starting a trend where people are typically employed as temps via agencies instead of permanent is also hitting home,the impact of these type of policies was never going to be immediate but eventually become apparent.

A recovery of some sorts will eventually happen but it will never be a full recovery, in real terms the average person wont get as rich as they were say in the year 2000.