Why is the UK financial system on its head part2?

The UK financial system is not providing the support and funding for those that need it: it solely lends to people with money and assets, isolating the poor. Why does this matter? This makes the wealthy wealthier and the poor poorer and our youth poorer. This policy will make the wealth gap worse: and affects the way the economy functions which is a real problem for rich and poor alike.

This inequality is probably the most substantial issue that the UK economy faces. This will effect all investments and businesses alike. For example the inequality is suppressing non durable economic consumption as shown below:

non duarble expenditure remains depressed

age variation degrees vs not skilled vs unskilled



The baby boomers continue to maintain their income, with 22-29 year old group seeing the largest fall in wages.







The number of people with degrees has risen sharply, and despite the growth their income has been maintained.









However the low skilled are losing out badly in employment with a dramatic reduction in semi skilled jobs since 1993.



This analysis points to the fact that the low skilled should be trained? The reality is in fact is different. The economy is not creating entry level employment for these groups of people. Deloitte predict that this trend is set to continue, with loss of a further 30% of those roles over the coming years.

“The Daily Mail effect”

The challenge is to appropriately invest in these low skilled people to create entrepreneurship. Yet the banks consider them exactly the people that the banks classify as sub prime customers vs the degree educated. The low skilled are just as resourceful and with the right support and need access to sources of credit focused at increasing their income to create long term sustainability.

Without access to the right type of support these people are trapped and the increasingly unfair distribution of wealth 2007-8 vs 2009-10 which shows that 2.2% of the 2.4% of the income growth was redistributed 2007-8, whereas falls income have hit the benefits and tax credits as the means of wealth distribution.

income redistribution 2008-9 changesincome redistribution

There will always be casualties of capitalist society, it just so happens that our fiscal system, banking system and welfare state has created a financial trap for these unskilled or semi skilled people leaving them without a paddle.

The Fruitful company have developed an approach to support these consumers with credit with a focus on increasing their income and developing entrepreneurship. Entrepreneurship funds are gifted back from the profits from the consumer credit. These people are just as smart as the next man and far more resourceful and the challenge is not to shame them into a poverty trap but to raise aspirations and provide micro funding to develop entrepreneurship.

Call to action

As we are finalizing our plans by the end of March: if you know of any high net worth or influential individuals who have a heart for the UK poor I would appreciate an immediate introduction. Our customers need support as they fail to cope with the financial isolation the UK financial system creates: yet with the right support its on our heart to raise their aspirations and enable them be very resourceful entrepreneurs.

with best wishes,

Tom Pickering FIET
Chairman email: tom@fruitful.today www.fruitful.today
Ezar Today Limited: (part of the Fruitful Company)