From 1990-2019, UK per capita GDP (PPP) grew about as fast as the U.S., and faster than Germany, Canada, or France. From 2009 to 2019 it grew faster than Canada or France, though slower than the U.S. or Germany.
Now, you may have seen graphs going around, showing UK median income dropping off severely relative to other rich countries after 2008.
How can we reconcile this with the GDP data? Two possible ways...
How can we reconcile this with the GDP data? Two possible ways...
One possibility is inequality. But UK inequality was about the same in the late 2010s as it was in the late 2000s, and both are down from the 90s.
A second possibility is the difference between income and *disposable* income. Maybe the UK's unique NHS mean they pay a lot less out of pocket for health care?
But no...British people actually pay a higher percentage out of pocket.
But no...British people actually pay a higher percentage out of pocket.
Now, that's a higher percentage of a modestly lower overall number, but really, out-of-pocket health care spending isn't going to make a huge difference between disposable income and total income here. The UK also doesn't have a higher tax burden than most of the others.
In other words, I don't see any obvious way to reconcile the UK's low median income numbers with its robust per capita GDP numbers. So what's going on?
I'll investigate further, but if you have any idea, let me know.
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I'll investigate further, but if you have any idea, let me know.
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Oh, it's also not a tax haven thing like Ireland.
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