Charles Adams says:
November 10 2019 at 3:43 pm
Wow I was shocked by those wealth numbers and went away to read the ONS report which shocked me even more.
Private pensions must be the biggest financial deceit ever inflicted on the majority of citizens without them realising the injustice.
Over 5 trillion in private pension wealth with 50% owned by the top 10% of households. The bottom 40% with nothing. And those top 10% got their 2.5 trillion tax free! And there it sits invested in fossil fuel companies that spew carbon carbon that is increasingly disrupt the lives of those 40%.
I am sure you have called for this Richard but we really need to make sure that no pension funds can invest in direct polluters or at least to remove their tax break and fast.
Longer term we really need to look at a fair and ethical way to redress the inequality in private pension provision. For example, is there any good reason why the private pension gini should be allowed to be higher than the income gini? Tax policy could be used to engineer a democratically agreed distribution.
Richard Murphy says:
November 10 2019 at 5:43 pm
I see this as a big direction fo travel for my work – and am having meetings on possible academic tie-ups for it this week
Generally, I am moving away from tax. I will still use it but the research focus is moving to green / accounting / investment / capital allocation / decision criteria
After 7 academic papers this year (six approved, one in resubmission), five chapters and four working papers I seem popular as a research partner
Dop you ant to join in Charles? That Gini thinking is neat and could be developed into something quite neat
A social policy journal might like it. I have some stuff heading in tat direction right now
That last typo is just lovely.
But what’s truly gorgeous is how neither of them have woken up to lifecycle effects. Pensions wealth will be greatest at the moment of retirement. The young generally have saved little toward one, the old are spending it down.
So, what concentration of pensions wealth would we actually expect? That is, because people both age and save, what should the gini of the pensions distribution be?