Does austerity make sense?

Public sector receipts and expenditure taken from a spreadsheet downloaded from the Office for Budget Responsibility which accompanies their December 2014 Economic & Fiscal Output report. The tax receipt forecast data is varied dynamically on this site using the nominal GDP figure also providing in the OBR’s spreadsheet. Data included in attached spreadsheet.

How much better could I be / where do I fit

Income distribution data obtained from the Institute of Fiscal studies. The methodology by which household incomes have been adjusted to reflect size and make up is explained by the IFS here. Derived by IFS from 2012/13 Family Survey conducted by the Government’s Office for Work & Pensions. Copy here. The IFS have adjusted for inflation up to March 2014.

Re-working of the income distribution based on the average inequality in the 1970’s:

This calculation uses a dataset from the appendices of Thomas Piketty’s book Capital in the 21st Century – download appendix 9.2 here. The share of income taken by the top 1% and top 10% is available back through the 1970’s. An average was taken for the decade for each of these datasets, and the share of the top 10% in today’s distribution was reduced accordingly. Further information in the attached graph data spreadsheet [uploading soon].

How much wealth inequality should we accept

Data on what share of the nation’s wealth is held by each decile is taken from Office for National Statistics and is based on a survey from 2010-12. Read the report here

The higher estimated of the share of the top 10% as quoted by Thomas Piketty in his book, Capital in the 21st Century can be viewed in appendix TS10.1 on Piketty’s website.  The corresponding reduction in the share of the other 90% was calculated on a pro-rata basis, in the absence of adequate data.


Animation produced with Hippo Studio