Inequality, debt and growth

Inequality, debt and growth shows that low to middle income households were reliant on borrowing to fund much of their spending for more than a decade before the financial crisis. This report reveals the full extent of the increase in borrowing and deterioration in household savings rates in the run up to the 2008/09 crisis, with the poorest 10% outspending their income by 40% by 2007. Given only a minority of the poorest are homeowners paying off their mortgage, it is highly unlikely this was counterbalanced by an increase in housing wealth.