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Strange Stats
There was a strange report on the increasing wealth gap in the UK. According to the BBC (click here to view story);
The JRF found that households in already wealthy areas had become "disproportionately" richer compared with society as a whole.
The global economy has been fairly benign over the past 10 years, with strong property rises, and a good equity rally over the past 5 years.
Anyway, consider persons A, B and C.
Person A has zero assets.
Person B has £10k of assets.
Person C has £100k of assets.
Assuming that their assets go up by the same proportion of 100%...
Person A still has nothing.
Person B has £20k of assets.
Person C has £200k of assets.
So Person B has become £10k richer than person A. And person C has become £180k richer than person C.
I suppose it could be argued that the proportions are still the same. But suppose Persons A and Persons B decide to use their profits to buy a new car. Person B wouldn't have much left over from his £10k, whereas Person C could easily buy a car and reinvest the remainder.
Anyway, I guess this post has no purpose, but neither does that report.
The JRF found that households in already wealthy areas had become "disproportionately" richer compared with society as a whole.
The global economy has been fairly benign over the past 10 years, with strong property rises, and a good equity rally over the past 5 years.
Anyway, consider persons A, B and C.
Person A has zero assets.
Person B has £10k of assets.
Person C has £100k of assets.
Assuming that their assets go up by the same proportion of 100%...
Person A still has nothing.
Person B has £20k of assets.
Person C has £200k of assets.
So Person B has become £10k richer than person A. And person C has become £180k richer than person C.
I suppose it could be argued that the proportions are still the same. But suppose Persons A and Persons B decide to use their profits to buy a new car. Person B wouldn't have much left over from his £10k, whereas Person C could easily buy a car and reinvest the remainder.
Anyway, I guess this post has no purpose, but neither does that report.
