All in it together
A personal fortune of £100m is now required to become one of the 1,000 richest people in the country, up £15m compared with last year’s entry point of £85m.
In 1997 it took a fortune of just £15m to join Britain’s richest 1,000 people.
BBC News Website 26 April 2015 : Music boss Len Blavatnik named as Britain’s richest man
What does this annual reporting of the Sunday Times Rich List?
It tells us that the very (very) rich seem to have done very well during the post crash period of austerity.
It also tells us to be very wary of politicians who tell us that “on average” we are better off. (They are probably being truthful for once – but utterly misleading as usual!)
If we have 10,000 people with modest wealth of £20,000 and one rich person with wealth of £85,000,000, the average wealth is about £28,500! Then if that rich person’s wealth increases to £100,000,000 (and everyone else stays the same) average wealth increases to about £30,000. “On average” wealth has increased by £1,500! But your “average person” does not have wealth of £20,000 + £1,500, they still have £20,000!
|No of “normal” people||10,000||10,000|
|“Normal wealth” (!)||20,000||20,000||NIL||NIL|
|Total “Normal wealth” (!)||200,000,000||200,000,000||NIL||NIL|
|One person’s super wealth||85,000,000||100,000,000||15,000,000||~21%|
|Average Wealth (approx)||28,500||30,000||1,500||~5%|
That’s how the maths works – and unfortunately how the economy seems to work!