The rich get richer

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As the Guardian has reported:

The richest 20% of the population in Britain will have, on average, the spare sum of £18,680 to put into their savings this year, while the poorest 20% will spend £1,910 more than they earn, latest figures suggest.

In research published this Thursday, the Post Office said saving was still being driven by the wealthiest people while lower earners were suffering a debt crisis. According to the Centre for Economics and Business Research, which undertook the analysis, this trend has been happening for the past 12 years.

This, I am sure, is no surprise to anyone but Chris Giles at the FT, who is claiming that Thomas Piketty's claim that the richest in this country are getting wealthier is wrong.

Now, high income and wealth are not the same thing: I acknowledge that. But as Piketty has noted, and as this report confirms, there is a link between the two. After all, if you can save then you are increasing your wealth.

In fact, for the rich to avoid getting richer they'd have to spend more than their income. And there is not a shred of evidence that they do that. But this glaringly obvious fact appears to have passed Chris Giles by.

It's time he opened his eyes, I suggest.