Friday, 18 July 2014

The ever-increasing gulf between rich and poor

The richest 20% of the population in Britain will have, on average, the spare sum of £18,680 to put into their savings this year, while the poorest 20% will spend £1,910 more than they earn, latest figures suggest.

In research published, the Post Office said saving was still being driven by the wealthiest people while lower earners were suffering a debt crisis. According to the Centre for Economics and Business Research, which undertook the analysis, this trend has been happening for the past 12 years.

The poorest 40% of the population have spent more than they have earned over this period, in contrast to the top 40% of earners who had money to save every year.

Even during the financial crisis of 2007-2008 those in the highest income brackets had enough disposable income to increase the amount they saved annually. By contrast, the rise of payday lenders in Britain's "Wonga economy" symbolised the squeeze on living standards faced by ordinary families, the report says.

According to a report by the housing charity Shelter about 3.8m households did not have any reserves to pay housing costs. Shelter's findings were based on a YouGov survey of 7,500 adults who had rent or mortgage payments.

Shelter found that 44% of working families with children under 18 could be one month's salary away from losing their homes if they became unemployed because they had little or no savings.
Meanwhile Citizens Advice said it had noted a 16% rise in social housing rent arrears last year, and a big jump in repossession warnings.

Economic inequality

The biggest drop in living standards since the Victorian age is seeing low and middle earners suffering an unprecedented squeeze on their incomes as austerity measures continue to bite, with women and part-time workers disproportionately affected.

More than five million people are officially classified as low paid and an increasing number of public sector workers are struggling to make ends meet, and so the economic inequality between the rich and poor in the UK continues to to march onwards in foodbank britain. The ever-increasing gulf between rich and poor in Britain is costing the economy more than £39bn a year, according to a report by the Equality Trust thinktank. The effects of inequality can be measured in financial terms through its impact on health, wellbeing and crime rates, according to statisticians at the independent campaign group.
Researchers pointed to the fact that the 100 wealthiest people in the UK have as much money as the poorest 18 million – 30% of all people – and said that the consequences of such unusually high rates of inequality needed to be acknowledged by politicians...

I think most people have always known the trickle down effect is and always has been complete and utter bollocks.

Bringing the problems of inequality to the attention of politicians who can't see past the next election or a future directorship is also pointless as they just don't care as long as they are part of the 1%.

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