Home > Analysis, Economy > Redefinition of Wealth

Redefinition of Wealth

The wealth of individuals, GDP per capita, is always taken as an average. So for many countries the average wealth is about £26,000. However, what happens to the individuals that earn less?

Theoretically they live in relative poverty, but there are those, even in wealthy countries, that live in absolute poverty (or close enough to the mark). What about a redefinition of wealth whereby the GDP per capita is not an average but an absolute taken from the lowest income earner among the economically active? Many ‘wealthy’ countries will suddenly be poor.

In the UK, the lowest income, according to the ONS, is about £6,000 (excludes those on benefits which total £3,200 at the least). That’s a drop in wealth of £20,000.

A country is only as wealthy as its poorest citizen.

If governments follow that principle they will have an incentive to raise the income levels of the poorest in society to thus increase the nations wealth (as a collective), increase the spending levels in the economy, and increase the opportunities available to everyone.

Advertisements
Categories: Analysis, Economy Tags:
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: