Pedro Braz
Asset 1Last Update: November 30, 2022

Many people earning between £20,000 – £30,000 a year feel as though they are not earning enough and would classify themselves as being poor. But according to the world economics forum, the global average wage stands at $17,760 or £11,597.So whilst the average person in the UK earning £30,000 a year is evidently not poor, many people in this situation certainly feel as though they are. So why is this so?

People, especially in the western world, don’t compare themselves with other countries, but rather compare themselves to their neighbours. So it really sucks when you live in an average neighbourhood and drive one mile past a £1 million mansion.

What we consider ‘Poor’ in the UK would be categories as middle class or even Rich in other countries. 

In the UK, you are considered living in poverty earn less than about £14,000 a year. But the great thing about this is people get assistance from the government in order to supplement their income and take it way above ‘the average earnings of people around the world.’ Even though costs are much higher in the UK, the standard of living of the poor here is way better than the standard of living of the average person throughout the world.

That is why it is funny to hear people say that the British economic model is ‘flawed’ because we have such a big gap between the rich and the poor. What they need to understand is that the people classed as poor in the UK are among the richest 1% to 2% of people on the planet. A recent study showed that if you earn above £22,200 after tax, you are part of the top 1%; but I don’t buy this as you need to factor in the higher costs of living in the UK vs elsewhere.

Imagine giving the average Somalian what someone here in the UK considered poverty. Heating, cell phone, refrigerator, TV and most importantly our systems of law. The person would not believe their good fortune only to bitch a few month later that he is not getting enough money!

People haven’t calibrated the absurdity of how spoiled they have become as prosperity is now considered a birthright.  The typical family in the UK now has a good place to live, central heating, a couple of new cars in the driveway, several gadgets and have a higher life expectancy than at any during history. Most people today live way better than their great-grand parents ever could have imagined yet they still complain. People whine over the high cost of fuel in the UK with ‘all this taxes’, but when you adjust the price for earning power, it’s cheaper here than in virtually all non-oil producing countries around the world on the glob

People never think how good they have it. They have short term memory and only want to keep up with the Joneses! So the next time you drive past a £1 million house, don’t be upset you are not living there but appreciate that you have it better than almost 99% of people around the world.

Even though the income gap between the rich and working class is growing in the western world, the lifestyle gap between the rich and working class continues to narrow. 

Pedro Braz
Co-Founder & Growth Manager

Pedro is passionate about finance, marketing, and technology. He is a growth manager at several online projects and a former digital marketer for a fintech company.