Thatcher’s legacy?

The figure below is one I found on the Liberal Conspiracy’s website in a post about the need to address Thatcherism. The figure comes from data provided by the Office for National Statistics and shows the 90:10 ratio from 1977 till 2011. This ratio is one way of indicating income inequality, something I’ve written about before. Another is the Gini index. Basically this figure shows the ratio of the income of the households in the top 10% of earners to those in the bottom 10%. It includes all taxes and benefits and (I believe) is based on the average for each decile (i.e., it is the ratio of the average net household income for the top 10% of households to the average of the bottom 10% of households). It is clear that it has risen substantially since 1977 (something that is also indicated by the change in Gini index over the same period). What I find most surprsing is the sudden jump between 1984 (when the ratio was 4) to 1988 (when it exceeded 6). This was smack bang in the middle of Thatcher’s reign as prime minister. No wonder she’s so disliked by those on low incomes.

The 90:10 ratio for the UK from 1977 till 2011.

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2 thoughts on “Thatcher’s legacy?

  1. Pingback: Owen Jones and the “supposed” fantasy economics of the left | To the left of centre

  2. Pingback: Thatcher is dead! | To the left of centre

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