The rich list.

Inside today's Sunday Times was the annual "Rich list" which is exactly what it says on the tin. Philip Beresford writes an interesting piece which describes how because the rich have got wealthier over the last year, this might provide the boost that the economy needs. Now any A2 economist will tell you that governments often try and reduce the inequalities in income distribution by progressive taxation and a series of benefits etc. However, Beresford argues that amidst the government spending cuts and squeeze on middle class families, the £60 billion rise in fortunes of the super-rich will help fill the gaps left in domestic demand. After all, when people feel richer they often spend more so when the super-rich feel wealthier, they are most likely to spend a heck of alot more. After a bit of rambling on, Beresford ends with a really interesting and valid point. As the coalition has promised to cut red tape and stimulate private enterprise this may be the best time for the super rich to spend on businesses that would generate future wealth. If they hold on to their wealth, the possibility of a labour government in 4 years would surely cost them through the use of "vengeful policies".