Posts Tagged ‘thatcher’

Income inequality around the world

Wednesday, March 25th, 2015 | Religion & Politics

Michael Shermer recently tweeted a link about income inequality in different countries. One of the most interesting graphs can be seen here.

This shows the share of income that the top 1% have. In the UK this peaked (technically it troughed) in 1977 when the level reached 6%, the lowest on record. This suggests we had the lowest levels of income inequality at this time.

From here on it goes up. The data only goes as far as 1988, but other sources shows that it has continued to increase.

Notably, 1977 is two years before Margaret Thatcher came to power. “Ah ha!” I hear you yell, “I know it all along”. To some extend, it probably is Thatcher’s fault, as the UK income equality gap has grown more than most. However, it is unfair to lay all the blame at her door (or grave) because this has been a global trend. Almost all countries in the developed world peaked in the late 70s and have since become less equal.

Country 70’s low 2010
United States 8% 15%
Canada 8% 12%
Australia 5% 9%
France 7% 8%
Italy 6% 9%
Sweden 4% 7%
Finland 3% 7%

According to an article on the BBC, the UK has reached 16% by 2005. This means that despite a decade under Labour, the income equality in the UK did not stop growing after Thatcher was gone.

Ultimately, what this tells us is that we should definitely vote Loony.