The adverse effects of economic inequality
- The Spirit Level demonstrated a strong correlation between health and social problems in societies and income inequality, suggesting that greater equality leads to better social outcomes.
- The Inner Level examined how economic inequality contributes to psychological problems such as status anxiety, low self-esteem, stress, depression, narcissism, and materialism.
Effects of inequality
In the article, the authors explain that inequality has many negative effects on society:
- Children in more unequal societies are more likely to experience bullying, lower school performance, and less social mobility.
- Higher levels of inequality are linked to problems such as gambling, domestic violence, and child abuse.
- People in more unequal societies become more status-oriented and consumerist, which exacerbates environmental problems.
- Social cohesion is lower in more unequal societies.
- People, especially young people, experience higher levels of mental stress and lower levels of well-being.
- Inequality reinforces the idea that some people are worth much more than others, which increases status anxiety and self-doubt.
Causality
Research shows that inequality actually leads to worse outcomes, not just that there is a correlation. Even small reductions can have a major impact on health and well-being. In more unequal countries, even the better off have worse health than in more equal societies.
Situation has worsened since the book was published
The book The Spirit Level was published during the final months of a Labor government. Although political leaders acknowledged the book's findings, their economic policies have often worsened inequality. Austerity measures, rising rents, and energy bills have contributed to rising poverty and deprivation.
Recommendations and economic impact
The authors propose several policy measures to reduce inequality. They advocate implementing socio-economic obligations for public institutions to improve outcomes for people with social and economic inequalities. In addition, they propose ending restrictions on benefits that affect families, introducing wealth taxes and higher taxes on capital gains and unearned income, and implementing a proportional property tax. The Equality Trust estimates that reducing inequality to the average level of other wealthy countries could save a country significant annual savings on healthcare and prisons.
Conclusion
The authors argue for ambitious policies to reduce inequality, which are not only fair but also deliver economic benefits. They call on the government to seize this opportunity and create a more equal society, based on their findings and the broad public support for these policies.
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