UK: The rich get richer

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The FT reports that:

The very rich have grown richer at double the pace of most Britons under Labour and their incomes may have accelerated further in recent years on the back of a rising stock market, research from the Institute for Fiscal Studies shows.

As they showed, the income of the very richest person rose on average by 4 per cent above inflation every year between 1996-97 and 2004-05. That compared with growth of about 2 per cent for those on middle incomes.

There is some other sobering data.

To be in the top 0.1 per cent of earners you now need to earn £350,000 a year. 47,000 had incomes of that level.

£100,000 a year puts someone in the top 1 per cent of earners, while £35,000 puts one among the nation's top 10 per cent.

That's how skewed our economy is.

But there's another fact. When I tell those who earn £100,000 a year that they are in the top 1% they are incredulous: how do the rest of the world live, they say? We're not well off, is their opinion. Which is as worrying.