How economic inequality harms societies | Richard Wilkinson

Summary

The speaker discusses the detrimental effects of income inequality on societal well-being, using data from various countries to illustrate the correlation between greater inequality and a range of social issues, including health disparities, crime, and lack of social mobility. Emphasizing the psychosocial impacts of relative income and status, the talk highlights that even the affluent suffer in more unequal societies, advocating for policies that reduce income gaps to enhance overall societal health and function.

Takeaways

• 📊 Inequality has a significant impact on societies, with more unequal countries facing a wide range of social problems, despite having no correlation with national income per capita.
• 🌍 The comparison of societies with varying levels of inequality shows that relative income and social status within societies are more important than the average income of a country.
• 📈 Within societies, there are noticeable health gradients, with life expectancy and other health indicators varying significantly between the richest and poorest areas.
• 🧩 The paradox of no correlation between national income and life expectancy globally, but a clear gradient within societies, suggests that relative wealth matters more than absolute wealth.
• 🔍 The speaker uses data from the U.N. and World Bank to illustrate the scale of income differences and their effects on societal well-being.
• 📉 More unequal societies tend to have worse outcomes in areas such as life expectancy, education, crime, and mental health, compared to more equal societies.
• 👶 UNICEF's index of child well-being also shows a significant relationship with inequality, indicating that children fare worse in more unequal societies.
• 🤝 Trust levels in a society are closely related to its level of inequality, with higher trust found in more equal societies.
• 🏥 Mental illness rates are higher in more unequal societies, reflecting the psychosocial effects of inequality on individuals.
• 🚑 Violence and imprisonment rates are also linked to inequality, with more unequal societies experiencing higher levels of these issues.
• 💼 Social mobility is greater in more equal societies, suggesting that a person's economic prospects are less determined by their parents' income.

Q & A

What is the main argument presented in the script about inequality?

The script argues that inequality is not only divisive and socially corrosive but also has a significant impact on various social problems within societies. It suggests that more equal societies tend to fare better in terms of health, education, and social issues compared to more unequal ones.

How does the script use the concept of 'relative income' to explain the paradox of life expectancy?

The script explains that while there is no significant difference in life expectancy between rich and poor countries, there are stark differences within societies. It suggests that 'relative income' or social position is more important within societies, indicating that how individuals are positioned relative to each other matters more for health outcomes than the overall wealth of a country.

What measure of income inequality is used in the script to compare different countries?

The script uses the measure of how much richer the top 20 percent is compared to the bottom 20 percent in each country, as an easy-to-understand metric to compare income inequality across different societies.

What is the correlation between income inequality and the various social problems presented in the script?

The script shows a strong correlation between income inequality and a range of social problems, including life expectancy, children's educational outcomes, infant mortality rates, crime rates, and social mobility. More unequal societies tend to have worse outcomes in these areas.

How does the script address the concern that the presented data might be cherry-picked to support a particular argument?

The script assures that the data presented is not cherry-picked. It states that if a data source has data for one of the countries being studied, it is included in the analysis, with the data source determining the reliability of the data, not the researchers.

What is the significance of the UNICEF index of child well-being in the context of the script?

The UNICEF index of child well-being, which includes 40 different components, is used in the script to further validate the argument that more unequal societies have worse outcomes for children, regardless of the country's per capita income.

How does the script differentiate between the effects of inequality on different social classes?

The script suggests that while the negative effects of inequality are most pronounced at the bottom of the social hierarchy, there are benefits to being in a more equal society even at the top, indicating that greater equality has a positive impact across the entire social spectrum.

What role does the script suggest that psychosocial effects play in the outcomes of inequality?

The script posits that the psychosocial effects of inequality, such as feelings of superiority and inferiority, respect and disrespect, as well as status competition, contribute significantly to the social problems observed in more unequal societies.

How does the script discuss the issue of causality in the relationship between inequality and social problems?

While acknowledging that correlation does not prove causality, the script discusses various studies and mechanisms, such as the impact of chronic stress on health and the sensitivity to social judgments, that suggest a causal link between inequality and the social problems observed.

What solutions or approaches does the script propose to address the issues related to inequality?

The script suggests that both pre-tax and post-tax measures are needed to address inequality. It calls for constraining top incomes, such as bonus culture incomes, and making bosses accountable to their employees, with the ultimate goal of improving the quality of human life by reducing income disparities.

How does the script compare the approaches of Sweden and Japan in achieving greater equality?

The script highlights that Sweden achieves greater equality through significant differences in earnings, which are then narrowed through taxation and a robust welfare state, while Japan starts with smaller differences in pre-tax earnings and has lower taxes and a smaller welfare state. It concludes that the method of achieving greater equality is less important than the fact of achieving it.