ABSTRACT
Assessments of government policy, and whether they are progressive, tend to focus on income inequality. In the long run, wealth inequality levels have changed quite dramatically. Wealth inequality in the UK declined substantially after the First World War, from a very high peak, and fell throughout most of the 20th century. Household wealth also has its inverse in household debt. Wealth confers opportunity. Studies controlling for background factors have shown an ‘asset-effect’ on life chances. Wealth also provides its owners with power and control. People accumulate wealth throughout their lives, so we should expect older people to have more wealth than younger people. In developed countries, the share of national income going to wages has fallen substantially since its peak in the late 1970s.
