Over the last 70 years, an inexorable long-term structural change has taken place in the economy. Source: ONS, defining ‘labour income’= wages + self-employed earnings It’s very clear that aggregate ‘labour income’ (=wages + self-employed earnings) has declined compared to consumer expenditure, with a turning point in 1995, such that
> From 1948 to 1995, labour income exceeded consumer expenditure.
From 1995 to 2016, consumer expenditure now increasingly exceeds labour income. By 2016, labour income only funded 86% of consumer expenditure. 14% of consumer expenditure was funded by unearned income. This trend is structural, long-term, and inevitable. Its most […]
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