Close summary analysis of the NATSEM report recently released. See also our collection of material on inequality, with a particular emphasis on the historical perspective. (NATSEM’s value, like some of the many other recent reports, is in projecting forward as well as looking back.) There were over 400 comments on this article.
The [NATSEM] report shows [says Jericho] that the increases in inequality that occurred during the past 10 years were essentially hidden because at least most households on average saw significant increase in standard of living. But over the next 10 years, with lower overall economic growth expected, the picture is one of inequality growing but with some households – notably the poorest – seeing their living standards actually decline.
The measures contained in the past two budgets and some decisions from previous years have meant that all boats will not be lifted by a rising tide of economic growth. Not only is the tide expected to rise by much less than in the past, the budget decisions have put some sizeable holes into the hulls of the boats carrying the poorest in society.