Post by notoriousnobbi on Mar 1, 2024 16:11:55 GMT
The question is often about which sources to trust.
I do not question sources like ONS (and I hope you are OK with your valuable tax money being spent on them)
www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householdincomeinequalityfinancial/financialyearending2022#main-points
Disposable income inequality increased to 35.7% in the financial year ending (FYE) 2022 from 34.4% in FYE 2021.
This follows a decrease of 1.0 percentage points between FYE 2020 and FYE 2021, the period covering the first year of the coronavirus (COVID-19) pandemic.
Original income (before direct taxes and cash benefits) has increased from 48.6% to 50.2% in FYE 2022, reflecting greater inequality in earnings over this period; however, longer-term trends (FYE 2013 to FYE 2022) show an overall decrease in original income inequality, reducing at an average rate of 0.2 percentage points per year.
Disposable income inequality for people in retired households increased by 1.3 percentage points to 32.1% in FYE 2022; income inequality of retired households is at its highest since records began, although remains consistently lower than for non-retired households (35.7% for FYE 2022).
In the 10-year period leading up to FYE 2022 (FYE 2013 to FYE 2022), disposable income inequality for non-retired households has increased by 0.8 percentage points, while income inequality for people in retired households increased by 3.9 percentage points, driven by the diminishing effects of cash benefits
...
This follows a decrease of 1.0 percentage points between FYE 2020 and FYE 2021, the period covering the first year of the coronavirus (COVID-19) pandemic.
Original income (before direct taxes and cash benefits) has increased from 48.6% to 50.2% in FYE 2022, reflecting greater inequality in earnings over this period; however, longer-term trends (FYE 2013 to FYE 2022) show an overall decrease in original income inequality, reducing at an average rate of 0.2 percentage points per year.
Disposable income inequality for people in retired households increased by 1.3 percentage points to 32.1% in FYE 2022; income inequality of retired households is at its highest since records began, although remains consistently lower than for non-retired households (35.7% for FYE 2022).
In the 10-year period leading up to FYE 2022 (FYE 2013 to FYE 2022), disposable income inequality for non-retired households has increased by 0.8 percentage points, while income inequality for people in retired households increased by 3.9 percentage points, driven by the diminishing effects of cash benefits
...
and I value explanations like
... characteristics of the Gini coefficient make it particularly useful for making comparisons over time, between countries and before or after taxes and benefits. However, one disadvantage of the Gini coefficient is that, as a single summary indicator, it cannot distinguish between different-shaped income distributions. For that reason, it is useful to look at this index alongside other measures of inequality (as seen in Figure 3).
One such measure is the S80/S20 ratio, which is the ratio of the total income received by the richest 20% of people to that received by the poorest 20%. In addition, the P90/P10 ratio compares the ratio of the income of the person at the bottom of the top 10% with that of the person at the top of the bottom 10%. Finally, the Palma ratio compares the ratio of the income share of the richest 10% of people with that of the poorest 40% of people. Together these measures provide further evidence on how incomes are shared across households and how this is changing over time.
One such measure is the S80/S20 ratio, which is the ratio of the total income received by the richest 20% of people to that received by the poorest 20%. In addition, the P90/P10 ratio compares the ratio of the income of the person at the bottom of the top 10% with that of the person at the top of the bottom 10%. Finally, the Palma ratio compares the ratio of the income share of the richest 10% of people with that of the poorest 40% of people. Together these measures provide further evidence on how incomes are shared across households and how this is changing over time.
and yet it won't be able to be a full picture of being a poor person. The less money a poor person has as a leftover after paying for the bare necessities the more the usual disruptions in life (car breaking down, death of a relative, moving to another town,...) can push you over the cliff. And if the state doesn't maintain its assets well the higher the probability of disruptions will happen. (classic example pothole) A wealthy person can cope with these much more easily.