"Back in 2009, Kate Pickett's The Spirit Level (co-authored with Richard Wilkinson) argued that inequality was the ultimate cause of almost all our social problems, from obesity and teenage pregnancy to violent crime; more equal societies, they claimed, had better outcomes across the board. While criticised as most big idea books are for overstating the case and cherrypicking evidence, they struck a chord, and some aspects of their thesis are now mainstream."
"But what actually happened to inequality and GDP over this period? On Pickett's own preferred measure, the Palma ratio, inequality peaked in 2008 and has fallen considerably since then, as the tax system has become significantly more progressive. Meanwhile, growth in GDP has been very slow compared to the previous two decades. If you'd asked Pickett in 2010 whether she'd have accepted this trade much slower growth in GDP in return for more progressive taxation and lower inequality, she'd presumably have jumped at it."
Inequality is presented as the root cause of many social problems—including obesity, teenage pregnancy, and violent crime—and greater equality is linked to better outcomes. Critics say the claim overstates evidence and sometimes cherry-picks data, yet some elements became mainstream. Measured by the Palma ratio, inequality in the UK peaked around 2008 and has fallen as taxation became more progressive, while GDP growth since 2010 has been unusually slow. During the same period, child poverty increased, life expectancy flattened, and imprisonment rose, producing a paradox of worsening social indicators despite lower measured inequality.
Read at www.theguardian.com
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