Saturday 13 September 2014

Saturday, September 13, 2014 Posted by Jake No comments Labels: , , , ,
Posted by Jake on Saturday, September 13, 2014 with No comments | Labels: , , , ,

In an earlier post we pointed out that London is sucking the life out of the UK. Were we being fair?
It is certainly true that London has a greatly disproportionate share of the UK's economic activity.

One consequence is things in London cost more, from the price of a pint to the price of a house
So are people in London paid more than in the rest of the UK so they can afford higher "London Prices"?

Well, yes and no.

On average Londoners are paid more: 15% more than the UK average.  
But take a closer look, and the story is different.

The wealthiest fifth of Londoners are paid much more: 30% more than the wealthiest fifth in the UK as a whole.

But the poorest fifth of Londoners don't get hardly anything extra: just 4% more than the poorest fifth in the UK as a whole.

All the above figures use the 'median' as the average value of incomes. The 'median' is the salary where 50% of the population is paid more, and 50% is paid less. 

The thing about this 'median' measure of average is you can raise the median while leaving half the population behind.

When a politician says "We will be better off if you do what I say", take a close look to see whether you are included in the "we". In the words of the old song:

It's the same the whole world over,
It's the poor wot gets the blame,
It's the rich wot gets the pleasure,
Ain't it a bloomin shame?


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