Both economists and the Government use average earnings when designing fiscal strategy and policy.
The figure for the UK is said to be £39,000 (about 46,000 euros or $56,000).
By using this figure their policies are targeted at a very small and unrepresentative part of the demographic.
This average figure is distorted massively when you look at the distribution curve for earnings.
87% of the UK population are earning less than the national average !!!
The true average (what most people earn) is shockingly around £11,000 per year or £220 per week.
Those on these typical lower incomes are largely invisible to those above the government's published average earnings.
See how you’re doing at http://www.ifs.org.uk/wheredoyoufitin
Comments are welcomed.
Thursday, 27 May 2010
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