Gary’s theory is that the cause of wealth inequality is wealth inequality.
In his Oxford thesis he claims that wealthy people become rich, buy assets and then use their passive income to buy more and more assets. He also claims that the rich don’t pay taxes like the rest of us.
If his theory was correct and the UK was experiencing a wealth inequality crisis the share of wealth held by the top 1% would be rising. It’s not - it’s been stable for decades.
The two reasons we are seeing issues at the bottom of the economic pyramid is because of technology and low skilled migration.
Technology is replacing entry level jobs and to the degree that there are entry level jobs the UK now has a large population of low skilled migrants competing for these jobs. Those two factors put massive downward pressure on people at the lower end of the economy.
What we are seeing is millions of young people who are economically inactive. Millions of people whose only economic opportunity is to claim any available government benefits. It has nothing to do with the rich.
The cost of housing has also risen. It’s not because a tiny group of elites buy up houses. It’s because the government had a decade of low interest rates and stimulus and an aging population don’t want to sell their homes and pay stamp duty on a smaller place. We actually have over 9M homes with 2+ spare rooms. Rich people are not interested in owning a 3BR terraced home in the midlands.
It’s easy to blame the rich for the problems we see but the truth is hard to hear… The UK is only surviving because we still have about 3M high earners who are paying historically high taxes. Actually just 300,000 people (1 in 100) are paying a third of the taxes and 30,000 of them (1 in 1000) are paying 10% of the tax bill. In a country with 70M people a few football stadiums of hard working, responsible, enterprising people are paying disproportionate taxes and demonising them isn’t helpful or based on any accurate data.
My documentary is coming out this week – why you should watch it