Politicians want us to believe that it is possible to make better-off people richer without making poor people poorer.
Stunning that politicians actually are accused of holding a belief which is true.
Similarly stunning that The Guardian assumes that this is obviously not true.
The Guardian is stuck in that idea that the size of the pie is fixed. Which, of course, it isn\’t. It is possible to grow the pie.
Just as one example. Way back when, around the time of the start of the Industrial Revolution, the gini (a measure of the inequality of the society) was about 0.50 for the UK.
The unchanged gini (ie, before we consider the effects of the tax and benefits system) for the UK now is about 0.50.
Are the rich better off now than they were in 1750? I think the answer to that is obviously yes. Are the poor better off now than they were in 1750? I think the answer to that is similarly and equally obviously yes.
So, we\’ve got unchanged inequality of market incomes over the 259 years, the better-off are better-off (umm, obviously, making adjustments for the fact that no one at all is 259 years old) and the poor are not poorer.
It is therefore possible to make the better-off better-off without making the poor people poorer.
The mechanism is called economic growth.
Such a pity that the leading left wing newspaper in the country seems entirely ignorant of this fact.