For decades, our economic system has been based on a hope that a general rising tide of economic wealth will benefit us all. With the release this week of the annual UK poverty report 2018 by Joseph Rowntree Foundation, we should now firmly reject this idea once and for all. For all the description and seemingly endless talk of inclusive growth and other policy reforms, we often ignore the fundamental determinant of poverty in this country: the unequal allocation of wealth.
We must accept that the UK political economy, with its market liberal economic growth model, is intrinsically incapable of ensuring that wealth is fairly distributed. We are the fifth largest economy in world, but fifty-two percent of our wealth is held by the top ten percent, and 20% by the top 1 per cent.