Time to tackle the rentier economy.

Grandad1943

The Labour Party stood on a platform of greater equality at the last general election. However, that was rejected by the electorate in favour of a party that would not even guarantee that standards workers have now would be maintained.

Thou shalt reap what thou shalt sow.

I have a great deal of sympathy for that viewpoint, Grandad.

It is somewhat ironic to read posts from known tory voters complaining about the economic conditions produced by tory policies...

But, you know, better dead than red...

You could probably buy a street in my town for the cost of a decent semi in some parts of London . How can that be right ?

gillybob

But can no one see that even an inheritance of a few £100k can make a massive difference .

Possibly Starting off with little or no mortgage, no student debt, no debt at all . Compared with someone who can’t even get a deposit together to get into the property ladder, afford to rent a decent home, loaded with student debts etc.

It’s a cycle that is rarely broken .

Yes I think that it is all contributing to a level of conomic equality that is getting worse and worse.

True gillybob and the inflation of property prices in London adds to the national problem. The suggestion above that inheritance tax on property value should be increased to £500,000 -£750,000 is well meant. But, many terraced properties in the north west/east are now owned by people who benefitted from the increase in property prices in wealthier areas. They're rental properties, often poorly maintained by absent landlords.
We need social housing at affordable rents, with security of tenancy. The right to buy should be stopped and a focus on affordable decent social housing returned to government policy.

But can no one see that even an inheritance of a few £100k can make a massive difference .

Possibly Starting off with little or no mortgage, no student debt, no debt at all . Compared with someone who can’t even get a deposit together to get into the property ladder, afford to rent a decent home, loaded with student debts etc.

It’s a cycle that is rarely broken .

The Labour Party stood on a platform of greater equality at the last general election. However, that was rejected by the electorate in favour of a party that would not even guarantee that standards workers have now would be maintained.

Thou shalt reap what thou shalt sow.

Social housing should be a priority and also stopping the ridiculous system of buying your council home at a vastly reduced price.

In all honesty the sort of unearned wealth that is being talked about on this thread is not the sort of wealth that the economists talk about. They mean the sort of unimaginable wealth that brings power and influence that destroys democracies.

Inheriting a bog standard house is small beer, but I do take everyone’s point about unearned wealth from property.

We're exactly the same * Callistemon*.
We worked hard to buy our house and have some money to leave our children. I would hate to think the government would get their hands on it. Take it from those who have amassed great wealth from the labour of others.

Whitewavemark2

The one nation Tories are calling for a tax on unearned wealth.

That’s a start, but they need to convince Johnson.

Maybe the inheritance tax threshold should be lifted to take into account the rise in house prices.

That way people in middle England / South East would not be punished for their houses increasing in price.

Increase it to £500,000 or £750,000.

The only fair way to rectify this will be by increasing inheritance tax (or tax unearned wealth) GagaJo but those with a fair bit to pass on, won’t want that. And so it continues . Money passed down to money, down to money etc. Creating a very unfair advantage .

The one nation Tories are calling for a tax on unearned wealth.

That’s a start, but they need to convince Johnson.

Exactly Gillybob. The IFS has calculated that approximately 10% of people born in the 70s and 80s will inherit more then it's possible to earn on the average wage from half a life time's earnings. Property prices have fuelled that and will mean that intergenerational wealth becomes a permanent fixture. That's not fair and doesn't promote aspiration.

We need a lot more decent affordable social housing.

annep1

www.google.com/amp/s/www.forbes.com/sites/angelauyeung/2020/07/08/jeff-bezos-net-worth-hits-all-time-high-of-more-than-180-billion/amp/

Why would you earn this much and not reward your employees well.

It's obscene, Anne .

Why does anyone need that much ?

I think the majority of us are somewhere in between these two extremes. We've struggled, had a mortgage at 15%, a failed endowment but our house is now paid for. It is not worth what houses are in the SE and London.
Should we need care the value of that would be gone in a couple of years although I would like to think that our children wouldn't have to struggle paying a mortgage or rent into old age, that an inheritance split between them would help.
We've paid our taxes and can't see why their inheritance should be taken by the government to be redistributed and none for their benefit as they don't even live in this country.

Should’ve added the great big giant ZERO at the bottom of my last post . Which is the amount my children will inherit from me , the same amount I will inherit from my father and the same he inherited from his parents and so on.

The problem being is that no one ever gets that ever so very fortunate “leg up” .

newnanny
Given how low interest rates are, and that they may even go negative (as has happened in Switzerland) there is no incentive to save. Especially when inflation is biting into your savings.

www.google.com/amp/s/www.forbes.com/sites/angelauyeung/2020/07/08/jeff-bezos-net-worth-hits-all-time-high-of-more-than-180-billion/amp/

Why would you earn this much and not reward your employees well.

There will always be savers and spenders. It doesn't account for the increasing inequality.

There are those who work hard are badly paid and are poor whilst their employers become billionaires. They will never have enough for their needs, never mind saving.
Who needs to have billions ?
We need a better distribution of wealth.

newnanny yes, there was an experiment on either Channel 4 or 5 where they gave multiple families their benefits for a year ( I think) in one go the results were interesting.

Like your post some blew the lot, some were careful and benefited.

If you want everyone to have the same then you should live in a communist country. There are those people who work hard and spend on stuff they need but save and invest their savings and are careful with money. There are others who work hard but spend every penny they get often on stuff they want not need tattoos etc. and never save. They don't try to save or invest. Wind forward just 5 years and the savers get richer and the spend it at once people are poor. Unless you control how much people can spend and what on there will always be inequality.

Those who save will pass on inheritance, and likely good saving habits, to their children and the cycle continues.

I worked to save money and invested in 2 b2l properties. When my Mum died and I inherited I bought 2 more. I have since bought 2 more. I will be able to leave each child 2 b2l properties. I pay tax on propeties and dh pays higher rate tax on the 3 b2l houses we own jointly. We supply a home for people to rent. We always have a waiting list of people wanting to rent from us. we make a profit but keep all houses in excellent condition and if an appliance breaks it is replaced within 24 hours.

Our home and holiday home in France will either be used to pay for our old age care if needed or else children and grandchildren will inherit. It is natural for parents to want to leave their worldly goods to their children.

Too many people spend more than they can afford and have not been taught to budget to live within their means.

There was a report a couple of days ago that said that those born in the 1980s (our children) will inherit more than half as much money from their parents as the average person earns in a lifetime:
I don't understand how this is worked out. If an average house in the expensive south east is £500,000 and someone has the average two children, that is five to ten years salary. If the parent has to go in a nursing home, there will be less money.

MaizieD

^Unfortunately it doesn’t work like that.^

Really?

Yes

Unfortunately it doesn’t work like that.

Really?

My children ( both born in the 80’s) will inherit the same from me as I will inherit from my father and the same as he inherited from his parents ( my grandparents) and so on . Meaning that the cycle will probably continue .