Frank Stilwell

The political economy of inequality

Sydney Ideas

Emeritus Professor, Department of Political Economy

University of Sydney

A University of Sydney, Sydney Ideas event

Key themes

Patterns

• Dimensions and extent of inequality –within and across countries, and globally

Processes

• What shapes 'who owns what?' and 'who gets what?'

Problems

• Economic, social and environmental effects of inequality, and its impact on happiness

Politics

• Strategies and policies for pursuing egalitarian goals

Prospects

• Obstacles and drivers of progressive change

The political economy of inequality, Frank Stilwell

World income inequality, 2016

Source: World Income Database, http://wid.world/data

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Inco

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Population Percentile

Intra-national income inequalities:Growth in the share of the top 10%

Source: World Inequality Report 2017.http://wir2018.wid.world/files/download/wir2018-full-report-

english.pdf, p. 10

World income distributionpercentage change, 1988 – 2008

Source: Milanovic, http://heymancenter.org/files/events/milanovic.pdf

World income distributionpercentage change, 1980 – 2016

Source: World Inequality Report 2017

The top 500 billionaires by country, 2018

Source: World Inequality Report 2017

Country Number of Billionaires

United States of America 155

China 39

Germany 39

Russian Federation 27

India 25

Hong Kong 17

Brazil 15

United Kingdom 15

Canada 13

France 13

Sweden 13

Thailand 8

Japan 7

Mexico 7

Switzerland 7

South Korea 6

Australia 6

The 1%’s share in USA, 1980 – 2016

Source: World Inequality Report 2017

The 1%’s income share in Western Europe, 1980 – 2016

Source: World Inequality Report 2017, p. 1

Global economic inequality in the 21st century

Counterveilingtendencies•Trade unions•Social democratic states

Circular and cumulative causation•Wealth and poverty•Inheritance

Contemporary political economic changes•Globalisation•Financialisation•Neoliberalism•Urbanisation•Technological change

Driving disparities

The political economy of inequality, Frank Stilwell

The share of wages in total income

Source: International Monetary Fund, http://www.imf.org/en/Publications/WEO/Issues/2017/04/04/world-

economic-outlook-april-2017#Chapter 3, p. 122.

The decline of public wealth

Source: World Inequality Report 2017, p. 15

Economic inequality, health and social problems

Source: Wilkinson and Pickett 2010, p. 20

Income inequality and social mobility

Source: Dorling 2017, p. 25

• ‘Raising the floor’• ‘Lowering the ceiling’• Creating greater equality of opportunity in the intervening space

RE-DISTRIBUTION:• Government taxes and expenditures

PRE-DISTRIBUTION:• Basic income• Civilising the corporation/challenging corporate power• Extending the commons

Policies for greater equality

The political economy of inequality, Frank Stilwell

Shifting shares: prospects

Source: World Inequality Report 2017, http://wir2018.wid.world/files/download/wir2018-full-report-

english.pdf

The political economy of inequality, a Sydney Ideas event

Necessary elements in social change:• CRITIQUE• VISION• STRATEGY• ORGANISATION

Now, what action?• A PERSONAL CHALLENGE…

Making a difference

The political economy of inequality, Frank Stilwell