An analysis of new wealth data by Positive Money illustrates the disproportionate gains between the richest and poorest in the era QE.
The latest ONS Wealth and Assets Survey, released on Thursday, suggests that those with wealth over £1m (the top 14% of households) have gained 278 times those with less than £20,000 (the poorest 14% of households), since the Bank of England introduced QE in 2009.
The median wealth of the poorest 14% of households rose by only £300 between 2006-2008 and 2014-2016 (from £7,500 to £7,800), whereas the median wealth of the top 14% increased by £83,500 over the same period (from £1,382,800 to £1,466,300)
Fran Boait, executive director of Positive Money, said:
“Behind the headline figures, Britain remains a deeply unequal country. The levels of wealth gained by the asset-rich over the past decade have been completely out of proportion with the rest of the population.
“The main driver of this soaring inequality has been the Bank of England’s QE programme, which has seen the central bank create £445bn to purchase assets since 2009, inflating asset prices and thus the wealth of the asset-rich.
“Overturning this huge divide in wealth inequality will require new approaches in monetary policy as well as fiscal policy.”
About Positive Money
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.