Income inequality
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We are all keenly aware that income inequality has been rising in most countries. Seven out of ten people in the world today live in countries where inequality has increased over the past three decades.
Some of the numbers are stunning—according to Oxfam, the richest 85 people in the world own the same amount of wealth as the bottom half of the world’s population.
In the US, inequality is back to where it was before the Great Depression, and the richest 1 percent captured 95 percent of all income gains since 2009, while the bottom 90 percent got poorer. In India, the net worth of the billionaire community increased twelvefold in 15 years, enough to eliminate absolute poverty in this country twice over.
With facts like these, it is not surprising that inequality is increasingly on the global community’s radar screen. It is not surprising that everyone from the Confederation of British Industry to Pope Francis is speaking out about it—because it can tear the precious fabric that holds our society together (our emphasis).
Let me be frank: in the past, economists have underestimated the importance of inequality. They have focused on economic growth, on the size of the pie rather than its distribution. Today, we are more keenly aware of the damage done by inequality. Put simply, a severely skewed income distribution harms the pace and sustainability of growth over the longer term. It leads to an economy of exclusion, and a wasteland of discarded potential (our emphasis).Lagarde, Christine, 4th February 2014, Dimbleby Lecture A New Multilateralism for the 21st Century.
To read the entire lecture click here
To listen to the lecture on BBC iPlayer, click here
UNISON has understood the need for equality in income for a long time and it is part of what informs UNISON's drive for a decent wage through its 'Worth It' and 'Living Wage' campaigns. Visit the UNISON pages to find out more and watch this space - we will keep you informed.
