Opinion – Income Distribution and Poverty ex OECD – John Gelmini

Gini index US 1967 to 2001

Gini index US 1967 to 2001 (Photo credit: Wikipedia)

The perennial issue highlighted by Dr Alf , in this latest excellent blog, provides hard evidence from the OECD of the ever-widening gap between those at the top and the vast majority of people at the bottom.

Under Tony Blair, the Gini Index was highlighting how inequality of income and wealth in just the UK had widened to a point unimaginable under Lady Thatcher who the left-wing still accuse to this day for nearly all the ills of modern-day Britain.

City bonuses are back, up 82% since last year, and in America the contrast is between the Wall Street plutocrats and “Masters of the Universe”, with their Sikorski helicopters who descend on the Hamptons on Long Island, and the 60 million people in America now in receipt of food stamps.

The income gap between Fortune 500 CEOs,  and those on average earnings is now 1000 to 1 and in the UK, it is 450 to 1 between Times 1000 Chief Executives and those on average earnings.

The figure for Germany, which pays its way through exports is 25 to 1.

These figures are, of course, only the ones based on official tax returns and exclude the $32 trillion now held offshore beyond the reach of any taxman in places like Bermuda, the Seychelles and 40 other tax havens.

Then there is the taxation of partnerships, which is so lax that hardly any of them are properly taxed at all in the UK whereas the IRS in America is more effective.

The London School of Economics aided by the BBC, the University of Manchester redid all the socio-economic categories at the beginning of the year and came up with:

1) An elite with personal savings of at least £140,000 gbp , extensive social contacts and an education at top universities, representing the top 6%

2) An established middle class, representing the next 25%, with household income of £47,500 gbp a year, “some highbrow tastes” and a comfortable life in small towns and villages

3) A Technical Middle Class representing the next 6%

4) New Affluent Workers representing the next 15%

5)“The Traditional Working Class(the old C1,s and C2,s) representing 14%

6)Emergent Service Workers representing the next19%

7)The Precariat at the bottom, with savings of less than £800 gbp, and after tax earnings of less than£8000 gbp.

The true position is very much worse because we have 400,000 people rummaging for food in food banks and dumpsters, plus incapacitated, sanctioned, forced-off the register and NEETS, those in work experience programs, and others, who are either on benefits or not in receipt of any money at all.

These people total 16.5 million out of a workforce of 32.5 million broken down in the Benefits Computer as:

1) 2.5 million unemployed jobseekers in receipt of the right NI credits and actively seeking work

2) 3 million incapacitated or soon to be switched to “Personal Independence Payments”a new tougher regime via IDS

3) NEETS 1.25 million

4) In training schemes 1 million

5) Sanctioned by benefits office staff 0.50 million

6) In receipt of severance pay but engineered out of the figures 0.50 million

7) 7 million economically inactive/discouraged(have given up the search for work and are no longer counted in the figures)

8 ) People who have been made redundant, have registered a company but not traded, who are counted as employed when in fact they are unemployed, have not traded, have not made any money and are relying on supportive spouses, partners and stay at home working children for financial support 0.75 million

On top of that, we have 5 million illegal immigrants doing menial jobs in conditions of quasi-slavery and indentured servitude with 250,000 new ones coming here every year.

Dr Alf wonders about the change that has come about since the 2008 financial collapse and considers it striking.
I have to agree with him and would also like to see those who perpetrated it and enriched themselves at the expense of everyone else brought to book, as the Icelanders are doing via their Super-bailiff with his powers of asset recovery, financial discovery and arrest.

The open question I would like to see an answer to is:

Just what it is going to take to arrest and start-to-arrest this situation, or was George Orwell in his book “Nineteen Eighty Four” foretelling the future?

Any thoughts?

John Gelmini

Enhanced by Zemanta

Government shutdown: what’s really going on – and who’s to blame? | World news | theguardian.com

English: Barack Obama signing the Patient Prot...

English: Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: Wikipedia)

This is an excellent, MUST-READ article from the Guardian. Check it out!

Government shutdown: what’s really going on – and who’s to blame? | World news | theguardian.com.

As I have indicated in an earlier blog, I have sympathies with the Republicans on Obamacare; however, I think that they on to a hiding-to-nothing, and will be penalized by the US public.

Any thoughts?

Enhanced by Zemanta