Owen Tudor
Apologies for not having commented on this until now, but earlier this month, the OECD issued “Divided we stand”, a seminal report on growing inequality that put the final nail in the coffin of the theory propounded in the 1980s by Thatcher and Reagan that the wealthier the rich got, the more money would trickle down to the lower paid. What the report showed was that over the last four decades, the rich have grown staggeringly richer in countries like the UK and the US (and the super rich have got even richer than that), but the poor have, well, sort of stayed where they were (which in terms of keeping up with the Joneses means they got poorer). In the UK, the gap between the richest 10% and the poorest has widened since the 1980s from 8:1 to 12:1 – and what’s driven this change has predominantly been the super-remuneration of the top 1% who have increased their share of national wealth from 7.1% in 1970 to 14.3% in 2008. There’s a lot more detailed information like that in the report.
Does this rise in inequality matter? Yes, for three reasons, two of them economic and one of them moral (the co-existence of conspicuous consumption and lavish lifestyles with poverty and squalor is, I think most people would agree, obscene).
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