Thoughts on the Sunday Times Rich List 2015

 

Thoughts on the Sunday Times Rich List 2015

The much read Sunday Times Rich List has come at an inauspicious time particularly given that there is a fully fledged class war being raged by the socialistically inspired Labour/SNP Party in the run up to next week’s Election.

Yes, a number of the mega rich individuals have appeared to become wealthier although there are exceptions to this as the Rich List clearly demonstrates.  What it does tell us is that anyone who has assets (property, shares/bonds etc.) has done well over the years and those who are reliant on salaries have fallen behind.

With Margaret Thatcher’s release of former council houses to the private sector in the 80s the person on the ‘Clapham omnibus’ was, for the first time, able to move from rented accommodation to buying their own home and, thereby, controlling their destiny.  Anyone who had the foresight to do this has made a small fortune over the years.  This increase in net wealth, through property ownership, has provided some families with a nest egg for the future which, ordinarily, they would not have had, a means by which they can help their descendents get on to the property ladder (via the ‘Bank of Mum and Dad’ )and become less dependent on the State.

It’s not true that all the wealthy have become wealthier and the poor poorer due to the growth in asset inflation.

What do we learn from this? People should try and qualify for the government instigated Help-to-Buy Scheme and instead of spending  money on rent put it into servicing a mortgage and, as asset inflation continues its relentless rise, the mortgage debt will shrink over time in relation to the asset value and, before you know it, they too will be, in a small way, part of the Rich List.

You don’t make the poor richer by making the richer poor (quotation; Winston Churchill).

Written by Trevor Abrahmsohn.
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