The Rich Get Richer: Unpacking the Alarming Rise of Wealth Inequality

You live in a country where the odds are stacked against you, simply because of the family you were born into — welcome to the harsh reality of wealth inequality in the UK.

Wealth inequality — two words that might sound like a distant problem, but trust me, it’s closer to home than you think. As a UK resident, you’re probably no stranger to the feeling of being stretched thin financially, with the cost of living seemingly going up by the day. But have you ever stopped to think about why it feels like the rich are getting richer, while the rest of us are just trying to make ends meet?

Let’s break it down. Wealth inequality refers to the unequal distribution of assets, like property, savings, and investments, among individuals or groups within a society. Sounds simple enough, but the reality is far more complex. See, when we talk about wealth, we’re not just talking about how much money someone has in their bank account. We’re talking about the opportunities they have access to, the networks they’re a part of, and the resources they can tap into.

In the UK, the wealth gap is staggering. According to the Wealth Inequality Database, the top 10% of the population hold a whopping 57% of the total wealth, while the bottom 50% share less than 5%. That’s right, folks — the rich are getting richer, while the poor are getting poorer. And it’s not just about individual wealth; it’s about the systemic issues that perpetuate this inequality.

Take, for example, the housing market. We all know that buying a house is a pipe dream for many young people, but did you know that the huge growth in house prices has contributed to collapsing rates of homeownership? People born in the 1980s have had lower rates of homeownership than all cohorts born from the 1940s onwards. That’s a whole generation of people who are being priced out of the market, forced to rent instead of owning their own homes.

But it’s not just about housing. The pandemic and its aftermath have only exacerbated the problem, with increases in saving being greatest for the most well-off, and rises in asset prices benefiting them too. Meanwhile, younger generations are facing a long-term stagnation in earnings, meaning they can no longer expect to see greatly improving living standards as they age.

Now, you might be thinking, “But what about social mobility?” Well, let me tell you, it’s not as easy as it used to be. With large rises in wealth combining with long-term stagnation of working-age incomes, inherited wealth is becoming increasingly important for the lifetime economic resources of young generations. That means that parental wealth is becoming more important in determining how much money you have.

It’s a bleak picture, but it’s not all doom and gloom. There are people and organizations working tirelessly to address the issue of wealth inequality. The Julius Baer Foundation, for example, is dedicated to reducing wealth inequality by supporting projects that help counterbalance the wealth divide and build trust between all groups in society.

So, what can we do about it? For starters, we need to acknowledge that wealth inequality is a problem that affects us all. We need to start talking about it, and we need to start taking action. We need to demand policy changes that address the root causes of wealth inequality, like progressive taxation, affordable housing, and access to education and job training.

But most importantly, we need to recognize that wealth inequality is not just an economic issue — it’s a human issue. It’s about the opportunities we have, the choices we make, and the lives we lead. It’s about creating a society that is fair, just, and equal for all.

So, let’s get the conversation started. What do you think about wealth inequality? How do you think we can address it? Share your thoughts, share your stories, and let’s work together to create a more equal society for all.