You should be aware by now that wealth inequality is the problem – but how do we fix it?
Isn’t it amazing that after more than a decade of some of us pointing out that, while most of the UK has been getting poorer after the economic shocks that started in 2008, the top-earning one per cent of the population has been increasing exponentially.
The wealth of the 10 top-earning billionaires nearly quadrupled between 2009 and 2022, from £47.77 billion at the start of that period to £182 billion at the end. It’s an increase of 282 per cent.
This Writer stated very clearly why it was happening, waaaaaay back in May 2014:
[The Tory party] uses taxpayers’ money to subsidise private firms… [The] government is using the system to leach money into the pockets of wealthy businesspeople.
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Firms… take advantage of the taxpayer-funded benefit system that supports people who earn less than the Living Wage (the minimum amount necessary for a working person to be able to pay their own way)… [so] more people may be employed, but on increasingly less money, meaning the burden on the taxpayer is increasing all the time.
But the taxpayer has increasingly less money to give to the Treasury, meaning that – instead of saving the economy – [then-Chancellor George] Osborne has put us into a vicious spiral of diminishing returns.
That is why the names on the Sunday Times Roll Call of Shame (otherwise known as the Rich List) are so much richer this year than they were before the Tories weren’t elected.
I was right, wasn’t I?
If you want to get the history from another source, here’s Gary Stevenson:
So the answer is to tax the rich; get the wealth back.
(And let’s not have any tiresome talk from the Modern Monetary Theory crowd about tax being only a tool to validate Sterling – the Pound – as a currency and keep inflation down. If the rich are taxed so that some of their money comes out of their bank accounts and back to the Treasury, the Treasury can add what it has taken out of the economy to public funding without increasing inflation. You can say it is using the money it has taxed out of the rich or that it is creating new money; there really is no material difference.)
The issue with that is that the rich might decide they don’t want to lose any of their billions – even though all they are doing with it is hoarding it in bank accounts – and leave the country. This is the threat that is being held over us all the time.
I’ve done a little research into what will happen if they do. It shows that on the negative side:
As the top one per cent of earners pay around 30 per cent of all income tax in the UK, their departure could reduce government revenues, impacting public services.
Business sectors catering to the wealthy, such as luxury real estate, high-end retail, private banking, and fine dining, could suffer losses. This will not affect the rest of us at all.
Many wealthy individuals invest in startups, venture capital, and philanthropy. Their exit could reduce available capital for UK-based entrepreneurs. But wealth is not being invested in new businesses anyway – that’s why Keir Starmer’s Labour government is trying to boost investment (the wrong way – the money is going to the super-rich).
If many wealthy individuals sell their UK properties at once, it could create downward pressure on high-end real estate prices, potentially affecting the broader housing market. If this means cheaper housing for more people, it is welcome.
Many rich individuals employ people directly (household staff, drivers, etc.) and indirectly (investment in businesses). Their exit could lead to job losses in certain sectors. But hardly any of them are investing in businesses so such losses will be negligible at this time.
Now let’s look at the positives:
Less Property Price Inflation – The super-rich often buy high-end London property as an investment rather than to live in, driving up prices. Their departure could make housing more affordable for locals.
Reallocation of Wealth and Opportunity – If political policies shift focus away from attracting the super-rich and toward investment in broader economic growth, it could benefit the middle class and small or medium-sized enterprises.
Less Tax Avoidance and Offshore Wealth Hoarding – Some of the ultra-wealthy use loopholes to minimize tax payments. Their exit might reduce aggressive tax avoidance, leveling the playing field.
A more Equitable Economic Model – A reduced reliance on a small group of high earners might encourage a more balanced and sustainable tax system, ensuring fairer wealth distribution.
And of course, the super-rich would have to leave their physical assets behind – property and businesses – and these may still be taxed.
Bear in mind that not all the super-rich would leave, also, meaning the effect created by those who did leave would not be as great as the fearmongers would have us believe.
The evidence suggests that this issue is a no-brainer and the rich should be taxed – reasonably – in order to create an equitable and sustainable economic system. It’s certainly more palatable than slaughtering more sick and disabled people.
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Wealth inequality is the problem – but how do we fix it?
You should be aware by now that wealth inequality is the problem – but how do we fix it?
Isn’t it amazing that after more than a decade of some of us pointing out that, while most of the UK has been getting poorer after the economic shocks that started in 2008, the top-earning one per cent of the population has been increasing exponentially.
The wealth of the 10 top-earning billionaires nearly quadrupled between 2009 and 2022, from £47.77 billion at the start of that period to £182 billion at the end. It’s an increase of 282 per cent.
This Writer stated very clearly why it was happening, waaaaaay back in May 2014:
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
I was right, wasn’t I?
If you want to get the history from another source, here’s Gary Stevenson:
So the answer is to tax the rich; get the wealth back.
(And let’s not have any tiresome talk from the Modern Monetary Theory crowd about tax being only a tool to validate Sterling – the Pound – as a currency and keep inflation down. If the rich are taxed so that some of their money comes out of their bank accounts and back to the Treasury, the Treasury can add what it has taken out of the economy to public funding without increasing inflation. You can say it is using the money it has taxed out of the rich or that it is creating new money; there really is no material difference.)
The issue with that is that the rich might decide they don’t want to lose any of their billions – even though all they are doing with it is hoarding it in bank accounts – and leave the country. This is the threat that is being held over us all the time.
I’ve done a little research into what will happen if they do. It shows that on the negative side:
Now let’s look at the positives:
Bear in mind that not all the super-rich would leave, also, meaning the effect created by those who did leave would not be as great as the fearmongers would have us believe.
The evidence suggests that this issue is a no-brainer and the rich should be taxed – reasonably – in order to create an equitable and sustainable economic system. It’s certainly more palatable than slaughtering more sick and disabled people.
Vox Political needs your help!
If you want to support this site
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Be among the first to know what’s going on! Here are the ways to manage it:
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5) Follow Vox Political writer Mike Sivier on BlueSky
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7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
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