I get the sentiment but factually that is not true. There are many measures of inefficiency but the classic one is the Gini coefficient and it did show significant increase in inequality in the 1980s then it levelled off and has reduced a little since the financial crisis. So over 30 years it’s broadly flat to marginally more inequal. But every one is better off which is great, people,forget,what it was like in the 70s.
The U.K. though is more inequal than many other capatilist countries so they could be an arguement for more Scandinavian politics here, but for sure not the Trots
The Guardian in an article this week said and I paraphrase here when talking about inequality in Britan in 2018:
This trend is especially pronounced in Britain, where the dramatic rise in inequality has been fuelled by the creation of a super-rich class. The share of the top 1% of income earners increased from 7.1% in 1970 to 14.3% in 2005.
The effect has been a dramatic weakening in the state's ability to spread wealth throughout society. From the mid-70s to mid-80s, the tax-benefit system offset more than 50% of the rise in income inequality. It now manages just 20%.
And also this week in an article inThe New Statesmen we are told:
There are many ways in which inequality can be felt and innumerable ways in which it can be measured. However, it is annual income that trumps all other measures,
Income inequality in the UK is higher than in any other European country, except occasionally one of the Baltic states (during a bad year for them). All other European Union countries enjoy greater income equality.
We live in times of peak inequality. It pervades almost every aspect of our lives in Britain in ways that we now accept as normal. Like goldfish in a bowl of dirty water we have adapted to think that our tank is normal. But it isn’t.
Among all European nations we have become the most inequitably rewarded – we are swimming in the dirtiest of fish tanks. The transition to this state of affairs came slowly. In the 1970s we were living in the second-cleanest large tank of all in Europe; only Sweden’s was cleaner. I say “clean” because as yet there is no evidence of any harm coming from high levels of equality – once a basic level of affluent subsistence has been achieved, there is no downside to being more economically equal.
After a time the statistics begin to turn you numb. You become used to bad news. Year after year the number of children waking up in shabby temporary accommodation rises. It now does so with each passing Christmas Day. A record 130,000 children were living in bed and breakfasts over Christmas 2017.
You become used to hearing that ever greater numbers have recourse to food banks (1.3 million parcels were given out in the year to April 2018), to such an extent that you almost forget that as recently as the 1990s there were no food banks in Britain. There was no need for them, before inequality reached its new peak – just as there was a time when the soup kitchens of the 1930s all disappeared once equality rose high enough. When the income share of the bottom 90 per cent is used as the comparator, today our levels of inequality are the same as in 1930. That is why the soup kitchens and feelings of hopelessness have returned.
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How did we get here? What went wrong? Equality for the bottom 90 per cent peaked in 1978 when they took home 72.2 per cent of all the income there was to take that year. This high point had followed us reaching a slightly smaller (and almost always ignored) peak of 71.5 per cent in 1968. Between those two dates we stumbled along a ridge of high equality and we could have chosen to go even higher. In hindsight, it is far easier to see. At the time, no one in Britain had a clear idea of just what a momentous period the late 1960s and early 1970s were.
While the Establishment peddles a different story
Finally the Gini coefficient you are referring to I assume relates to the recent IFS report on the subject which states that inequality was at its lowest in the 1970s The figure shows that between 1961 and around 1980, inequality as measured by the Gini was roughly unchanged. It then sharply increased across the course of the 1980s and modestly increased between 1990 and the financial crisis. Since then, it has fallen back to and remained at around the level it was at in the early 1990s. Thus, inequality as measured by the Gini coefficient is essentially the same as it was 25 years ago – but still substantially higher than in the late 1970s.