bottom 6 decile spend more then they earn. But before we talk about stuff that can be done about it from a government point of view. What can be done about from a people’s point of view. If we take the the expenditure of each decile from the income of the above decile. i.e. what happens if the 6th decile spend what the 5th spend. We see something interesting.
But before we go eureka we have solved the problem 2 things have to be considered first. The poorest are still in debt. And secondly what level of expenditure is needed?
Labour’s Eric Byrne recently brought out a living wage bill for Dublin Corporation with a living wage in
Now I could point out a few graphs about where money could be saved. But even though I have a few done I will not bore you with them (Saves me uploading them as well) But here is one of percentage of income spent on alcohol. That graph says a lot not just about fact that 11% of income of people in the lower decile but also the fact that the average spend on alcohol is 47.18 for alcohol and tobacco vs 42.67 for clothing.
One thing to note that each decile does not necessarily mean 10% of the population. The bottom decile has about 4% of the population. Or I guess basically the unemployed. With the major source of income of the 3 decile’s being pensions and other social welfare payments. Save for the 3rd deciels where salary is second largest source of income.
So do people on pensions need the same living wage? The National Federation of Pensioners Association were looking for about €300 Euro’s a week. So if this is what pensioners need to live this reduces the amount of people not needing €390 for a living wage.
So what about the remaining people what can be done? First we don’t want to create welfare traps where people are better off on the dole then off it. So I would be slow to suggest adding 233 Euros a week onto the dole. But other things can be down. VAT for instance effects the poor more the wealthy. Reducing VAT on many essential items would help as well. Also stuff like TV licences are regressive forms of taxation and should be noted. But increased welfare payments should indeed be considered.
But what of the other decile’s who are in debt yet are earning enough to be considered safe. What can be done about them? What can the government do to ease their debt. The question really should be if people are in debt yet earning enough to live is it any business of the government if they can’t do a household budget and stick to it?