It depends upon how you define poverty.
Although you only have to glance at the FTSE100 to know that child (and adult) poverty will soon explode,
I agree absolutely that poverty will increase, in the sense that more people will have less money. But that isn\’t the way that poverty is defined in our modern world. Now we define it in relative terms. It is as a percentage of the median income of the country.
I don\’t think it\’s all that much of a surprise that it\’s going to be the higher incomes that are hit hardest…..and the welfare state is going to underpin the incomes of the poorest, just as it does now.
It\’s possible that income inequality will shrink in the years to come. And given the way we measure poverty, that could actually mean a fall in poverty rates even while we\’re all earning less.
In fact, I would rather expect poverty rates to fall. For when things were going swimmingly, when higher incomes were indeed racing ahead, poverty as defined was increasing, wasn\’t it? Now the system is going into reverse, can\’t see why poverty rates won\’t decline.