Realsociology

A hyperreflexive blog focussing on critical sociology, infographics, Buddhism and extreme early retirement

Archive for the 'Infographics' Category

Some ‘nice’ infographics on inequality in the UK…

Posted by Realsociology on 17th September 2014

Wealth Distribution

It’s a bit dated already, but I guess these things take a bit of time to put together – A video outlining wealth distribution in 2008/10. One of the stand-out statistics is that to be that in the bottom 10% of households, the HH had to have wealth of less than £13000, whereas to be in the top 10%, the HH needed wealth greater than £967 000. Or…

Top 10% of households –       Minimum Wealth = £967, 000

Bottom 10% of households – Maximum Wealth = £13, 000.

So the poorest household in the richest 10% is at least 74 times richer than the richest household in the bottom 10%.

(Quick aside – From an extreme early retirement perspective, £967,000 is about three times what you need to retire on, so not one of those households needs to be working, although some will be because of unnecessary consumption addiction syndrome).

 

Inequality has actually increased since this video – In 2010 the wealthiest 20% of the UK were 92 times wealthier than the poorest 20%, in 2012 they were 105 times wealthier.

WEALTH3

 

Life Expectancy

Richmond upon Thames had the highest healthy life expectancy (HLE) for both males (70.3 years) and females (72.1 years). The lowest HLE was in Manchester for males at 55.0 years and Tower Hamlets for females at 54.1 year

health2

 

Education

There’s no pretty picture for this one, but there is a nice interactive infographic here (courtesy of learning plus)

The short story is that, nationally, while there has been an overall improvement in the GCSE 5 A*-C pass rate, there has been an increase in both the FSM (Free school meal) gap and the CLA (children looked after) gap between 2012-13, so those from disadvantaged backgrounds have fallen further behind those from more advantaged backgrounds.

The site notes… ‘Nationally we see an increase in the percentage of pupils eligible for pupil premium achieving 5+ A*-C GCSEs including English and mathematics between 2011 and 2013. At the same time the gap in the achievement of this threshold measure has widened between 2012 and 2013, reflecting a greater increase in the achievement of other pupils. The percentage of CLA pupils achieving 5+ A*-C GCSEs including English and mathematics increased by just 0.3% between 2012 and 2013 while among all other pupils this rose by 1.8%, widening the performance gap to 45.9%. Among FSM eligible pupils there was an increase of 1.8% achieving this threshold measure in 2013 than in 2012; similarly there was an increase of 2% for all other pupils, increasing the gap to 26.7%’

On the plus side, there is evidence that London is successfully closing this education gap.

In summary – CLASS INEQUALITY IS STILL RIFE IN MODERN BRITAIN!

Posted in Infographics, Wealth and Income Inequality | No Comments »

How the median income earner could retire at 52

Posted by Realsociology on 3rd September 2014

Over the summer I worked out that a 35 year old earning the median salary could potentially retire at 52, if they just stop buying crap they don’t need now. In contrast, the expenditure levels of the average worker-consumer effectively tie them into working until the current standard retirement age of 68.

This post is simultaneously a critique of the ordinary worker-consumer and of the Extreme-Early-Retirement model, which I don’t think can be applied in its fullest sense to an average person in the U.K. (Although if someone wants to modify my stats using different investment models to see if the retirement date could be brought forward, I’d be interested!).

In this blog post I compare two hypothetical 35 year old individuals (4) who both earn the median UK salary. One individual has average consumption and expenditure while the other has in mind the goal of retiring as early as possible and so is much more frugal, without completely having cut themselves off from society.

As testimony to my lack of Open Office Calculator and Inkscape skills, this is represented below:

Ret Info

To make reading this more meaningful, you should refer to this spread sheet throughout – Comparing 33 years of expenditure

For the sake of making an easy comparison, I’ve used expenditure figures based on one person living alone for the remainder of their life, and imagined that they have just bought their first property at the age of 35. The reason for selecting a 35 year old is because this is the age by which most people are settled into a stable career, and this is also the age by which most people are at least starting to think about retirement, if not yet looking forward to it in the near future. It also happens to be the age at which today’s typical graduate student can reasonably have expected to have paid off their student debts and have some kind of savings towards their first property. Although the figures in each expenditure category will vary considerably depending on variables such as age, or household make up, the levels of expenditure are generally not going to be that far away from how the majority of people spend their money for much of their lives, and thus most people should at least recognise something of their own and their friends’ expenditure habits in these figures.

However, to satisfy those who just can’t get over the problems of using averages when variables which will differ widely, I’ve included a link (4) to the spread sheet where I’ve done my calculations so you can add in your own expenditure and income levels in order to personalise these calculations for yourself, or you can even modify at a deeper level to add in things such as inflationary effects, investment returns and changes in circumstance over time.

The purpose of this exercise is to put in the starkest terms possible how many years and months (expressed in decimal terms) of one average human life one individual would have to spend working to buy certain things for the remainder of one’s normal working adult human life. In those stark terms – The expenditure levels of the average-consumer effectively lock them into working until the current standard retirement age of 67-8, while the frugal-consumer, assuming they maintain their frugal levels of consumption, will be able to retire when they are 51, or 14 years earlier, or in half as much time as the average consumer on the average wage.

 

Executive summary – A comparison of the 33 expenditure patterns of an average-consumer compared to a hypothetical frugal-consumer.

As far as I see it, there are three main factors which work together to keep the average 35 year old worker-consumer locked into the need to work for 33 years until they are 67-8. In terms of overall expenditure, the single most significant item is the 25 year mortgage with massive interest payments (costs 9 years). However, this lock in occurs primarily because the high cost of car ownership (costs 5 years), and what I can only characterise as fragmented expenditure on a range of unnecessary consumer frivolities (costs 4 years), which together means that a person earning the average median salary has no choice other than to drag the mortgage out over a 25 year period, and accept the attendant massive interest costs.

In contrast, what I call the frugal-consumer chooses to get rid of the car and buys a bike (saving 4 years), radically reduces consumption of frivolities (saving 2.3 years), and in addition makes some relatively marginal savings on necessities (saving 1.5 years) such as food and utilities. Taken together, these changes in lifestyle allow for an 11 year mortgage repayment term and much lower interest payments as a result (saving 2 years). All of this, factored with the lower cost of living, mean that this individual could potentially accrue enough savings over 16 to years to pay for 33 years worth of frugal consumption, allowing for an early retirement age of 52.

In future blog posts, I’ll compare expenditures across four categories – housing, transport (focusing on the car), consumer frivolities and things which may be reasonably regarded as necessities.

If you can’t wait, you can always buy my book and help me retire a few minutes earlier…..

 

Boring but important – A few (selected) notes on data sources and expenditure categories and statistics

Categories of Expenditure In my analysis below I have four main expenditure categories, mainly drawn from The Office for National Statistics’ Family Expenditure Survey (5) -Mortgage repayments -Transport costs -Necessities – food, utilities, council tax, clothes, pensions contribution, communication, maintenance of dwelling, health -Consumer frivolities – recreation and culture, restaurants and hotels, ‘miscellaneous’, household goods and services, alcohol and tobacco and education.

To get my figures for individual expenditure based on one individual living along I’ve mainly used the data from the ONS’ family spending survey and divided by the average household size (2.4 people) where it makes sense to do this (dividing makes sense for clothes, but not for council tax). Because the figures are mostly weekly, I’ve multiplied by 52 to get the annual figures and then 33 to get the 33 year overall expenditure to the normal retirement age. I’ve calculated how many years working it would take the average consumer to pay for one category of expenditure earning the median net salary by  dividing the total cost of 33 years worth of expenditure by this figure (£21, 240). Where housing costs are concerned, I’ve used the figures for the cost of repaying the average mortgage which is £121 000 according to this is money (6).  Here, for the average-consumer repayment is over a 25 year term, while for the frugal-consumer, the repayment period is over an 11 year term.

Median Income

According to the UK Annual Survey of hours and earnings (7) median, full-time gross weekly earnings stands at £517.00 per week, which amounts to (*52) a median gross annual salary of £26884, which equates to a take home annual salary of £21, 240, or a monthly salary of £1770 after income tax and national insurance are taken out (£408/ week for those who like to work in weeks).

Potential problems with my modelling

Firstly, I don’t take into account inflation, I’ve just worked out everything at today’s prices, and neither do I take into account any returns you might make investing rather than paying down the mortgage, which is the main early-retirement strategy in my scenario. However, these two things being equal in both my average and frugal-consumer examples, you are still a lot better of spending as little as possible on anything other than the mortgage or savings. Another potential limitation of the model is that it is mainly based on someone having a stable job, and being single, although it is possible to ‘stick to the programme’ while moving around jobs and holding down a relationship, maybe even kids, just a lot more difficult.

 

References

(4)See the spread sheet above

(5)Office for National Statistics – Family Spending 2013 http://www.ons.gov.uk/ons/rel/family-spending/family-spending/2013-edition/index.html

(6)http://www.thisismoney.co.uk/money/mortgageshome/article-2553023/Two-thirds-time-buyers-turn-Bank-Mum-Dad-deposit-help.html

(7)ONS – Annual Survey of Hours and Earnings 2013 – http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/2013-provisional-results/stb-ashe-statistical-bulletin-2013.html

Posted in But what can I do?, Capitalism, Infographics, Retirement - Early, Things I like, Uncategorized, Work | No Comments »

Increasing income inequality in the UK

Posted by Realsociology on 30th August 2014

I thought this infographic showing income inequality was worth sharing (From the Equality Trust) –

income-inequality-uk-2

Unfortunately (if you think income inequality is bad!) things have got even worse since 2012!

Britain’s top executives are now paid around 130 times their average employee, according to analysis released today by the High Pay Centre think-tank. 

Income inequality has got a LOT WORSE in recent decades. In 1998, the average FTSE 100 CEO was paid 47 times their average employee, which means that while average incomes have stagnated in relation to the cost of living, the incomes of the very richest have almost trebled in 15 years.

The video below illustrates this in stark terms by comparing the typical wage of a nurse with that of a typical CEO, the headline figures being as follows:

  • A CEO earns as much in 3 days as a nurse does in a year.

  • A CEO earns more in a year than a nurse will earn in her entire life.

  • If we redistributed the income of the top 1%, then on average each household in the UK would be better off by £3K a year.

 Related questions you might like to think about include….

1. Why does such income inequality exist?

2. Is this fair? (are CEOs worth 130 times more than their average employee?)

3. Is income inequality good or bad for society?

4. If you’ve answered ‘no’, and ‘bad’ to questions 2 and 3, can anything be done about increasing income inequality?

Posted in Changing Britain, Infographics, Marxism, Wealth and Income Inequality | No Comments »

Information is power (and money and freedom)…

Posted by Realsociology on 21st October 2013

another cartoon that just has to be shared…

20131020-224000.jpg

Posted in Infographics, Neoliberalism, Uncategorized | No Comments »

The World Wealth Report 2013

Posted by Realsociology on 2nd October 2013

 

The World Wealth Report reports on trends in the wealth of HNWIs – Or High Net Wealth Individuals. These are individuals with $1million or more in investable assets. You have to sign up to be able to download the report, but its free. (Thankyee for the crust kind sirs, doffs cap…) 

Between 2011-12, the richest 12 million people in the world gained an extra 4.2 trillion dollars of wealth between them – Their total wealth is now $46.2 billion, up from $42 billion in 2011. Thats a tidy $350 000 each extra on average, and according to the predictions below that trend is set to continue…

wealth1

Of course it gets bleaker… the averages above disguise the fact that the richest Ultra High Net Wealth Individuals increased their overal wealth more than the mere ‘millionnaires next door’… the proportional increases may well be the same, but of course a 10% gain on $50 million means you gain more than if you’d gained 10% on a mere $1 million.

wealth4

 

And bleaker… The richest 12 million may have got 10% richer on average, but this is on the back of a mere 2.2% GDP growth rate, so their wealth is growing nearly five times the rate of real global wealth (although somehow I’m sure that’s not a fair comparison?!)

wealth5

 

And even bleaker… according to the World Bank’s GNI data (not the same as wealth I know) -  GNI only increased from around 70 to 71.4 trillion dollars, which is less than 1%, so most of this wealth increse doesn’t seem to be rooted in the production of tangible goods and services.

No doubt there are different ways of interpreting what this data actually means, comments welcome!

 

In case you prefer a word-based summary – the 2013 report notes the following…

  • Between 2011 to 2012 The world’s HNWI population increased by 9.2% to reach 12.0 million, after remaining flat in 2011.
  • In the same period, The aggregate investable wealth increased 10.0% to US$46.2 trillion, after declining slightly in 2011.
  • ƒHNWI wealth in 2012 represented a new level of strength, going well past the historical high of US$42.7 trillion set in 2010.
  • Relatively stronger growth rates in higher wealth bands4 (US$5 million or more) led the growth of overall investable wealth globally.
  • All of this is despite a decline in the rate of world GDP growth to 2.2% last year.

 

 

Posted in Global Development, Globalisation, Infographics, Neoliberalism, Wealth and Income Inequality | No Comments »

Social Class Inequality Visualisations

Posted by Realsociology on 1st October 2013

I had my classes exploring one of my ‘favourite’ topics today – The extent of and explanations for inequalities in life chances by social class, gender and ethnicity – Here a few visual updates and links which highlight the extent of class inequality in the UK today…

1. In Education… 3 year olds from the richest fifth of households are twice as likely to be ‘school ready’ than 3 year olds from the poorest fifth of households

education

2, by health – This is a nice, if dated article which reminds us that Based on 2007-2009 mortality rates, a man aged 65 could expect to live another 17.6 years and a woman aged 65 another 20.2 years. This graphic demonstrates that men and women from routine manual backgrounds are twice as likely to die before the age of 64 than those from professional backgrounds(my title is clearer than that in the picture!)

c

 

3. The chances of being a victim of violent crime (available from the ONS and the Home Office Annual crime stats reports)

bh

4. Births outside of wedlock (not that I think the decline in marriage is a bad thing!, unlike the author of the post where I got the info!

The chart below shows the proportion of kids who are born outside marriage by social class in Britain. Its quite a short period of time, but you get the general idea. At the top, things haven’t changed much. At the bottom, having children inside marriage is not the norm, and increasingly rare.

121109-coming-apart

 

More Sources to follow…

 

Posted in Crime and Deviance, Education, Infographics, social class, Wealth and Income Inequality | No Comments »

China and Russia – Among the world’s worst human rights abusers

Posted by Realsociology on 22nd June 2013

China and Russia have both been moved to the bottom tier of the U.S. human trafficking rank, joining the likes of North Korea, Sudan, and Zimbabwe, according to a recent U.S. State department report.

20130622-190731.jpg

In China, the one-child policy and a cultural preference for male children perpetuates the trafficking of brides and prostitutes. Chinese sex trafficking victims have been reported on all of the inhabited continents. Traffickers recruit girls and young women, often from rural areas of China, using a combination of fraudulent job offers, imposition of large travel fees, and threats of physical or financial harm, to obtain and maintain their service in prostitution.

Forced labour is also widely practised in China, in which both internal and external migrants are conscripted to work in coal mines or factories without pay, as well as its continued use of re-education hard labor camps for political dissidents.

In Russia, there are estimates that 50,000 children are involved in involuntary prostitution and about one million people are thought to be exposed to exploitive labor conditions, including extremely poor living conditions, the withholding for documents, and nonpayment for services.

Human Rights Watch has pointed out that some of Russia’s labour abuses have occurred during the preparations for the 2014 Winter Olympics in Sochi, with some workers enduring “12-hour shifts with one day off per month, having their passports confiscated, being denied employment contracts, and facing unsanitary and overcrowded employer-provided accommodations, with up to 200 migrant workers living in a one single-family home.”

While the nature and scale of such absuses isn’t on a scale with what’s going in Syria, these two nations are not ‘rogue states’, they make up half of the BRIC nations. Given their status as rapidly growing and globoalising economic superpowers, combined with the size of their populations, the potential for further human rights abuses in these two nations profound.

It would be nice to think that this lower designation results in the U.S. imposing sanctions on these contries countries, such as voting against any IMF or World Bank loans. However, given the historical record of the U.S. tolerating and even supporting governments who champion capital over human rights, I don’t think sanctions are likely anytime soon.

Posted in Global Development, Infographics, Uncategorized | No Comments »

Putting DRC Poverty in context (2)

Posted by Realsociology on 9th December 2012

My first ever infographic!

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Not perfect I know, and maybe a bit tedious in terms of the ‘same old theme’ again, but I’m pretty pleased for a first effort…

Disclaimer – The relative sizes might be a bit skewed, I square rooted the relative numbers and then ‘tweaked’ so they looked about right. Anyways, it’s just a first effort, defo more to come. Hopefully one day I can figure out a way to get paid to knock (much more professional versions) of these up.

I made it in inkscape  - Pretty easy to get the basics, even for a total novice like me!

Posted in Global Development, Infographics, TNCs | No Comments »

Top ten infographics for teaching international development

Posted by Realsociology on 29th January 2012

Firslty, like many others, I have to say ”Hats of off to Hans’ and of course everyone else who works on the ‘gapminder project’  - With his truly amazing moving data visualisations combined with his enthusiasm – front man Hans Rosling works wonders with stats and maybe makes you think being 60 odd ain’t that bad after all…?!

 

Secondly, Worldmapper which produces the wonderful maps below – which shrink or expand countries according to whatever variable is being examined – The actual original maps are now a bit dated, but this related views of the world’ site – has a much borader scope and much more up to date information! On ’views of the world’.

 

 

Thirdly, and in at number three because they give us an immediate impression of global inequalities – I still think these colour coded maps are very useful – especially if you project up the map for income, and then HDI/ infant mortality – you can really see the high degree of correlation! The Map below shows HDI – from darkest to lightest blue – Very high to low, 2011 data

 

Fourthly, these United Nations Human Development Index data trees are cool – which have different colours for the three different elements of data shown in the HDI – Gross National Income per capita, Education levels and Life expectancy.

 

Fifthly – there is this more in depth data from the UN site - I like this because you can track compare how different elements of the HDI relate to eachother and how they change over time – for numerous countries.

Sixth , and going back to ‘simple earth modelling’ there are these wonderful pictures of ‘the world as a hundred people’

 

Seventh – there is this miniature earth video - part of the miniature earth project – related to the above obviously – This is the 2010 version – not as nice as the original, as this one’s to whale music…. but the most up to date version!

 

Eighth - there is some great material on this site – Information is Beautiful - not least the ‘International number ones’ infographic – because every country is best at something! (Click on the link above, the pic below doesn’t do it justice!)

 

Ninth, and only ninth because it’s not really a data visualistaion – but still pretty fab for inducing panic – Worldometers is a counting clock that looks population trends, spending on certain things, environmental decline, deaths from certain diseases and society and media. Some of the things you learn are -

  • The world population is 7 billion and counting
  • There are 2.3 billion Internet users – growing (rapidly) – also over 3 million blog posts today alone!
  • There are 900 billion undernourished people and
  • 1.5 billion overweight people
  • More than 4 billion a day is spent on the military and 26 billlion so far this year has been spent on drugs!.

And tenth – well I didn’t get to ten – If you really can’t deal with my stopping at 9. then why not suggest youre favourite ‘global data visualisation’?

Posted in Globalisation, Infographics | No Comments »