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Poorest in UK have £40 a month less to spare than a year ago, study finds | Family finances | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it

From www.theguardian.com - January 24, 2023 3:36 AM

Graham Watson's insight:

Looking at the data provided by Retail Economics, you could be forgiven for thinking that this is part of a zero sum game: it seems that poor consumers are spending £40 less per month than a year ago, whereas the rich are spending approximately the same amount more.

However, even though net spending might not have changed much national income could still change. You might think about whether rich or poor consumers have a higher marginal propensity to import.

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slap woods's curator insight, February 13, 2023 6:14 PM

Scooped by Graham Watson

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From www.bbc.co.uk - September 25, 2022 1:28 AM

Graham Watson's insight:

The Labour Party are fairly unequivocal about the distributional effects of the mini Budget's tax cuts: they are focused on enriching the top 1% of income earners. Of course, the government's take is going to be that they are going to boost growth.

The next few months are going to be interesting - if it's self-evident that the top 1% of the population are identified as the engine of growth, can we start castigating their 'laziness' if the economy enters recession?

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Macroeconomics: UK economy, IB Economics

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