1. Exquisite Tweets from @ChrisGiles_, @macroeu, @MattPattv1, @nicktolhurst, @EMApplications, @ProfGBarrett, @eveningperson

    PreoccupationsCollected by Preoccupations

    My regular plea for people to stop saying U.K. income (or wealth) inequality is rising.

    It is not. And hasn’t for a generation.

    But it did rise a lot in the 1980s

    All from @TheIFS living standards report today ifs.org.uk/uploads/R145%2…

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    ChrisGiles_

    Chris Giles

    In fact middle incomes have been growing fastest. Top and bottom have struggled in recent year’s.

    (So poorest further adrift. But richest are closer to normal)

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    ChrisGiles_

    Chris Giles

    Well what about the top 1%, you cry. “These plutocrats have been running away with everything”

    Wrong again

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    ChrisGiles_

    Chris Giles

    But there are legitimate concerns that the trends will change (mostly because employment rates cannot increase for ever)

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    ChrisGiles_

    Chris Giles

    If ONLY we could agree these facts

    It’s not asking much, is it?

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    ChrisGiles_

    Chris Giles

  2. It depends what measure is used though. DWP figures which supplement this with data from tax returns does indeed show inequality rising. There’s also this to consider too.

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    macroeu

    Ciaran

  3. Wonder how much this is about perception of who is in the 1%? Maybe what people mean when they say 1% is the 0.1%. You're way above the 1% if you're a plutocrat.

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    MattPattv1

    Matt Patterson

  4. Chris I’m a great believer in data but my working class family bought a house on a single factory workers job that now costs £400 000.
    Im a skilled graduate, Ive done the maths - I now work abroad - I simply cannot replicate my working class upbringing on my mid class wage in UK.

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    nicktolhurst

    Nick🇬🇧🇪🇺

  5. Quite possibly.

    My untested hypothesis is that because income growth for all has been so terrible, we like to look for scapegoats, rather an accept it’s been a bit rubbish for all

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    ChrisGiles_

    Chris Giles

  6. You are caught in the one bit of the income distribution that has changed significantly. The intergenerational picture.

    It’s not a rich poor thing, but an old young thing. I agree

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    ChrisGiles_

    Chris Giles

  7. oops! wealth and income not the same, like debt and the deficit, couldn't find ONS on wealth in a hurry but BBC says wealth inequality rising recently bbc.co.uk/news/business-…

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    EMApplications

    EM Applications

  8. 'Income inequality isn't rising now' is 1 way of looking at things, Chris. Let's try another:'income inequality grew enormously through the1980s and has never shrunk back to the kind of levels seen in the 1960s and 1970s.' Doesn't sound so nice or complacency-inducing, does it?

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    ProfGBarrett

    Gavin Barrett

  9. No. And it’s accurate. And that is what should be argued, but generally isn’t, thereby allowing the case against inequality level to fall because the argument is incorrect.

    Don’t assume I’m not in your side!

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    ChrisGiles_

    Chris Giles

  10. Ok. My apologies if I mistook appropriate exactitude for social indifference, Chris.The amount of complacency about inequality in modern society worries me a bit...all the more so, having just finished your colleague Ed Luce's book about the retreat of Western liberalism...

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    ProfGBarrett

    Gavin Barrett

  11. Maybe you trust The Guardian then? They say since 2008 wealth of richest 1% growing at 6% pa while for the rest at 3%. That will create a very big divide. theguardian.com/business/2018/…

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    EMApplications

    EM Applications

  12. Inequality is not rising, but incomes in real terms have been falling?

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    eveningperson

    Richard Burnham

  13. The IFS data is adjusted for tax payments at the top end. Tax data takes insufficient account of changes to the tax system

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    ChrisGiles_

    Chris Giles

    That is world, not UK and those numbers are highly disputed.

    Next.

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    ChrisGiles_

    Chris Giles

    Yes. (Though rising recently)
    The very low growth in incomes is sufficient to explain why people are cross

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    ChrisGiles_

    Chris Giles