inequality : the enemy between us

INEQUALITY: THE ENEMY BETWEEN US

Source: Wilkinson & Pickett, The Spirit Level (2009)

Lerwick, Shetland Islands 2/09/2014

Maddy Powerfrom

The Equality Trust

The Equality Trust is an independent, evidence-based campaign

working to reduce economic inequality in order to improve the quality of life in the UK.

www.equalitytrust.org.uk


Outline of presentation

• Overview of inequality in the UK today

• The health and social impacts of inequality

• Why are we so sensitive to inequality?

• What drives inequality?

• Policy and local solutions

Income and wealth inequality in the UK

UK INCOME INEQUALITY TODAY IN £

Average full-time annual pay (2012) for a FTSE 100 Chief Executive Officer

= £4.3 million.

Average UK worker (2012)

= £26,500.

Or, if we compare top-to-bottom pay:to earn what a FTSE 100 CEO earns in ONE YEAR a person on National Minimum Wage (£6.31 p/hr)

would have to work for …

375 years

SOURCES:

http://www.equalitytrust.org.uk/resources/infographic-income-inequality-uk http://www.equalitytrust.org.uk/resources/infographic-national-minimum-wage-

uk

UK WEALTH INEQUALITY TODAY

• Top 1% of households has the same wealth as 54% of the population

• Richest 1000 people have more wealth than the poorest 40% of households

• Richest 100 saw their wealth increase by £40.1 billion last year, equivalent of £109.95 million a day.

Trends in UK income inequality 1977 – 2011/12


1977

1979

1981

1983

1985

1987

1989

1991

1993

/94

1995

/96

1997

/98

1999

/00

2001

/02

2003

/04

2005

/06

2007

/08

2009

/10

2011

/12

25

27

29

31

33

35

37

39

Ris

ing

ga

p b

etw

ee

n r

ich

an

d p

oo

r, r

ela

tive

to

19

77

Health and social problems are worse in more unequal countries

Income inequality

Index o

f healt

h a

nd s

oci

al pro

ble

ms


Index includes:

• Life expectancy

• Maths & literacy

• Infant mortality• Homicides• Imprisonment• Teenage births• Trust• Obesity• Mental illness

(incl. drug and alcohol addiction)

• Social mobility

Better

Worse

Low High

Health and social problems are worse in more unequal US states


AL

AK

IL

AR

CA

CO CT

DE

FL

GA

HIID

AZIN

IA

KS

KY

LA

MT

MD

MA

MI

MN

MS

MO

SDNE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

ME

TN

TX

UT

VT

VA

WA

WV

WIWY

Index o

f healt

h a

nd s

oci

al pro

ble

ms

Better

Worse

Low HighIncome inequality

Income per head and life expectancy: rich and poor countries


0 5000 10000 15000 20000 25000 30000 35000 4000040

50

60

70

80

Afghanistan

Albania

Algeria

Angola

Antigua

Argentina

Armenia

Australia

Austria

Azerbaijan

Bahamas

Bahrain

Bangladesh

Barbados

Belarus

Belgium

Belize

Benin

Bolivia

Bosnia

Botswana

Brazil

Brunei

Bulgaria

Burkina Faso

Burundi

Cambodia

Cameroon

Canada

Cape Verde

CAR

Chad

Chile

China Colombia

Comoros

Congo

Congo-DR

Costa Rica

Croatia

Cuba

Cyprus

Czech Republic

Côte d'Ivoire

Denmark

Djibouti

Dominica

Dominican Republic

Ecuador

Egypt El Salvador

Equatorial Guinea

Eritrea

Estonia

Ethiopia

Fiji

Finland

France

Gabon

Gambia

Georgia

Germany

Ghana

Greece

Grenada Guatemala

Guinea

Guinea-Bissau

Guyana

Haiti

Honduras

Hong Kong

Hungary

Iceland

India

Indonesia Iran

Iraq

Ireland

Israel Italy

Jamaica Jordan

Kazakhstan

Kenya

N.Korea

S.Korea Kuwait

Kyrgyzstan

Lao

Latvia Lebanon

Lesotho

Liberia

Libya

Lithuania

Macedonia

Madagascar

Malawi

Malaysia

Maldives

Mali

Malta

Mauritania

Mauritius

Mexico

Micronesia Moldova

Mongolia

Montenegro

Morocco

Mozambique

Myanmar

Namibia

Nepal

Netherlands

New Zealand

Nicaragua

Niger

Nigeria

Oman

Pakistan

Panama

Papua New Guinea

Paraguay Peru Philippines

Poland Portugal

Qatar

Romania

Russia

Rwanda

St Kitts

Saint Lucia St Vincent

Samoa

Sao Tome

Saudi Arabia

Senegal

Serbia Seychelles

Sierra Leone

Singapore

Slovakia

Slovenia

Solomon Islands

Somalia

South Africa

Spain

Sri Lanka

Sudan

Suriname

Swaziland

Sweden

Switzerland

Syria

Tajikistan

Tanzania

Thailand

Togo

Tonga

Trinidad & Tobago

Tunisia

Turkey

Turkmenistan

Uganda

Ukraine

UAE UK

Uruguay

Uzbekistan

Vanuatu

Venezuela Vietnam

Yemen

Zambia Zimbabwe

Life

expect

ancy

(years

)

National income per person ($)

Health and social problems are not related to average income in rich countries


20000 25000 30000 35000 40000

UK

New Zealand

USA

AustraliaFrance

Portugal

Austria

Ireland

Greece

GermanyCanada

Italy BelgiumSpain

Denmark

SwitzerlandNorway

Finland

Netherlands

Sweden

Index o

f healt

h a

nd s

oci

al pro

ble

ms

National income per person ($)

Better

Worse Index includes:

• Life expectancy

• Maths & literacy

• Infant mortality• Homicides• Imprisonment• Teenage births• Trust• Obesity• Mental illness

(incl. drug and alcohol addiction)

• Social mobility

Health and social problems are only weakly related to average income in US states


15000 20000 25000 30000

AL

AK

IL

AR

CA

CO CT

DE

FL

GA

HIID

AZ

IN

IA

KS

KY

LA

MT

MD

MA

MI

MN

MS

MO

SDNE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

ME

TN

TX

UT

VT

VA

WA

WV

WIWY

Index o

f healt

h a

nd s

oci

al pro

ble

ms

Better

Worse

Income per person ($)

Life expectancy is longer in more equal rich countries

76

78

80

82

UKNew Zealand

Israel

USA

Japan

Australia

France

Portugal

Austria

Ireland

GreeceGermany

Canada

ItalyBelgium

Spain

Denmark

SwitzerlandNorway

FinlandNetherlands

Sweden

SingaporeLife

expect

ancy

in y

ears



r = -0.44 p-value = 0.04

Infant mortality rates are higher in more unequal countries

32

3

4

5

6

7

UK

New Zealand

Israel

USA

Japan

Australia

France

Portugal

Austria

Ireland

Greece

Germany

Canada

Italy

Belgium

Spain

Denmark

Switzerland

NorwayFinland

Netherlands

Sweden

Singapore

Infa

nt

death

s per

10

00

liv

e b

irth

s



r = 0.42 p-value = 0.04

Child wellbeing is better in more equal rich countries

UK

New Zealand

IsraelUSA

JapanAustralia

France

PortugalAustria

Ireland

Greece

GermanyCanada ItalyBelgium

SpainDenmarkSwitzerlandNorway

Finland

Netherlands

Sweden


UN

ICEF index o

f ch

ild w

ellb

ein

g


r = -0.62p-value = <0.01

Worse

Better

More adults are obese in more unequal rich countries

30

10

20

30

UK

New Zealand

USA

Japan

Australia

France

Portugal

Austria

Ireland

Greece

Germany

Canada

Italy

Belgium

Spain

Denmark

Switzerland

Norway

Finland

NetherlandsSweden

Perc

ent

obese



r = 0.57 p-value = <0.01

Drug use is more common in more unequal countries

UKNew Zealand

Israel

USA

Japan

France Portugal

AustriaIreland

Greece

Germany

CanadaItaly

Belgium

Spain

Denmark

Switzerland

Norway

Finland

Netherlands

Sweden


Index includes use of:• Opiates• Cocaine• Cannabis• Ecstasy• Amphetamines

Index o

f dru

g u

se

Low High

Low

High

Income inequality

r = 0.63 p-value = <0.01

Levels of trust are higher in more equal rich countries

0

20

40

60

80

UK

New Zealand

Israel

USA

JapanAustralia

France

Portugal

AustriaIreland

Greece

GermanyCanada

ItalyBelgium

Spain

Denmark

Switzerland

Norway

Finland Netherlands

Sweden

Singapore


Most

people

can b

e t

rust

ed (

% a

gre

ein

g)


r = -0.66 p-value = <0.01

Educational scores are higher in more equal rich countries

New Zealand

Israel

USA

JapanAustralia

France

Portugal

Austria

Ireland

Greece

Germany

Canada

Italy

Belgium

Spain

Denmark

Switzerland

Norway

Finland

Netherlands

Sweden

Avera

ge o

f m

ath

s and r

eadin

g s

core

s



Low

High r = -0.45 p-value = 0.04

Social mobility is lower in more unequal countries

UK

USA

Germany

CanadaDenmark

Norway

Finland Sweden

Soci

al m

obili

ty


Low High

Low

High

Income inequality

r = 0.93 p-value = <0.01

Source: The Cost of Inequality

Why are we so sensitive to inequality?

Research shows that the key psycho-social risk factors for ill health are:

• Low social status (social-evaluative threat)

• Weak social affiliations (friends & community)

• Stress in early life (pre and post-natal)

ALL of the above are exacerbated in more unequal societies.


Value or devalued?


More inequality

• More superiority and inferiority

• More status competition and consumerism

• More status insecurity

• More worry about how we are seen and judged

• More “social evaluation anxiety”(threats to self-esteem & social

status, fear of negative judgements

What kinds of stressful tasks raise stress hormones most?


0

0.2

0.4

0.6

0.8

1

Cort

isol re

sp

on

se

(eff

ect

siz

e)

Tasks with ‘social evaluative threat’ (uncontrollable)

Other tasks

Dickerson SS, Kemeny ME. Acute stressors and cortisol responses. Psychological Bulletin 2004; 130(3): 355-91.

What drives inequality?

• Family

• Childhood

• Globalisation

• Technology

• Political systems and institutions

What are the policy solutions to inequality?

• Vocational education

• Active welfare programmes

• Council tax

• Work place commission

• Auditing


What can be done at a local and individual level?

Join The Equality Trust:* donate - equalitytrust.org.uk/support* sign-up - equalitytrust.org.uk/newsletter-signup

Learn and teach by:* visiting equalitytrust.org.uk* especially equalitytrust.org.uk/about-inequality

Act by:* join or form a local group in Lerwick* telling all your friends, family and colleagues about us!

inequality : the enemy between us

Documents

wilkinson pickett

spirit level

social impacts of inequality

social problemsnational

social problemssource

average income

economic inequality

ukuk income inequality