We are rich!
Well, some of us are. The Guardian reports that millionaires are rather more common than one might think:
But as Tom Clark’s report makes clear, it’s not all good news:
That is some gap, but what are we supposed to do about it? For those on the left, the answer is redistribution. But what of, exactly? This isn’t money in the bank we’re talking about, but mostly people’s houses and pension pots. Are these to be confiscated?
Of course, “through downsizing, inheritance or equity release, this notional wealth gets cashed in at some stage”. And, as Clark goes on to argue, spending the proceeds on “master's degrees or deposits to help buy property in the right place” will have “major implications for the life chances of some – but not others – in the next generation, and the one after that.”
Furthermore, this isn’t even necessarily money that people have earned or paid tax on:
Trying to tax this windfall might seem fair, but how is it to be distinguished from money that has been hard-earned and taxed once already? Mansion taxes, death duties and the like provide far too blunt an instrument.
Also would government do any better a job promoting social mobility if it had the money? Recent experience would suggest otherwise.
The only thing that truly promotes social mobility is the opportunity to earn – and right now this seems to be in short supply:
This is not a good sign. It suggests that those with money see existing assets as a better bet than the creation of new wealth.
So, while we should be concerned by the growing gap between the financial worth of the rich and the poor, an even bigger concern – if you actually care about workable solutions – is the growing gap between our notional wealth and our national income.