The UK is remarkable for its polarisation: it accounts for a very significant portion (nearly half) of the top 1% of wage earners in the EU, and yet it also has a substantial presence in the bottom two quintiles.
Well, yes. That’s because in The City we’ve got one of the great global centres of specialisation, equal to Silicon Valley in its global impact, and we’ve got the incredibly high productivity jobs that go with that. Don’t think of The City as really being part of the UK economy: it just happens to be here.
The rest of the UK economy is a rather dreary and not very rich northern European country.
And yet this is what Ritchie complains about. Just think how poor the Curajus State would be without that centre of global excellence?
And this is pure bollocks:
According to the analysis, the level of wage inequality in the EU as a whole is below that of the US and the three most unequal countries in the EU – Latvia, Portugal and the UK – when wages are measured in terms of purchasing power parity (PPP). The Gini index for wages in the EU as a whole is 0.346 (for full-time equivalent wages measured in PPP), while the comparable measure for the US is around 0.4, and in the UK, the most unequal EU country, it is 0.404. The majority of EU countries have Gini values for full-time equivalent wages well below the overall EU figure.
They’re not measuring inequality as a whole. Can’t possibly be. They’re measuring national inequality then averaging it. Somewhere that contains Romania and The City does not have a lower gini than the UK.
Hmm, actually, reading the report, perhaps not. PPP makes a helluva difference. At which point, of course, we need to start applying regional PPP to see the regional ginis in the UK. Which will be rather lower than the nationally reported one of course.