‘why greater equality makes societies stronger’ richard wilkinson and kate pickett, bestselling...

75
What World Leaders are saying… Income inequality is the “defining challenge of our time”. “… rising inequality and declining mobility are also bad for our families and social cohesion – we…trust our institutions less (and) trust each other less when there’s greater inequality. And greater inequality is associated with less mobility between generations.” President Barak Obama , 4 th Dec 2013 “Inequality is the root of social ills.” Pope Francis , 24 th Nov 2013 “…the economics profession (has) downplayed inequality for too long. Now all of us have a better understanding that a more equal distribution of income allows for more economic stability, more sustained economic growth, and healthier societies with stronger bonds of cohesion and trust.” Christine Lagarde, Director, IMF , 23 rd Jan 2013 “Social and economic inequalities can tear the social fabric, undermine social cohesion and prevent nations from thriving.

Upload: gaia-manco

Post on 05-Aug-2015

56 views

Category:

News & Politics


2 download

TRANSCRIPT

Page 1: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

What World Leaders are saying…

Income inequality is the “defining challenge of our time”. “…rising inequality and declining mobility are also bad for our families and social cohesion – we…trust our institutions less (and) trust each other less when there’s greater inequality. And greater inequality is associated with less mobility between generations.” President Barak Obama, 4th Dec 2013

“Inequality is the root of social ills.” Pope Francis, 24th Nov 2013

“…the economics profession (has) downplayed inequality for too long. Now all of us have a better understanding that a more equal distribution of income allows for more economic stability, more sustained economic growth, and healthier societies with stronger bonds of cohesion and trust.” Christine Lagarde, Director, IMF, 23rd Jan 2013

“Social and economic inequalities can tear the social fabric, undermine social cohesion and prevent nations from thriving. Inequality can breed crime, disease and environmental degradation and hamper economic growth.” Ban Ki-Moon, UN Secretary General, 9th July 2013

Page 2: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Why Greater Equality Makes Societies Stronger

Pretoria, June 2015

Richard Wilkinson and Kate PickettProfessors of Social Epidemiology

Page 3: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

A lecture in three parts:-

• How and why large income inequalities damage us all

• The relevance of greater equality to achieving sustainability

• What can be done to reduce inequality

Page 4: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

4Bagehot, On equality. The Economist, 19 Aug 2010

Page 5: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 6: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Social Relations

• Child conflict• Homicide• Imprisonment• Social capital• Trust

In summary... bigger income gaps lead to deteriorations in:-

Human Capital

• Child wellbeing• High school drop outs• Math & literacy scores• Social mobility• Teenage births

Health

• Drug abuse• Infant mortality• Life expectancy• Mental illness • Obesity

Page 7: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Income per head and life expectancy: rich and poor countries

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

National income per person ($)

Page 8: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

‘‘Cross-country data show almost no relation between changes in life expectancy and economic growth over 10, 20, or 40-year time periods between 1960 and 2000. Many countries have shown remarkable improvements in health with little or no economic growth...’’

Cutler D, Deaton A, Lleras-Muney A. The Determinants of Mortality. J Economic Perspectives 2006; 20: 97–120.

Page 9: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 10: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 11: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Health is related to income differences within rich societies but not to those between them

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

Least deprived

Most deprived

Within societies

Page 12: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

www.equalitytrust.org.ukWilkinson & Pickett, The Spirit Level

Neither health nor social problems are related to national income per head

Index of: • Life expectancy• Math & Literacy

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

– incl. drug & alcohol addiction

• Social mobility

Ind

ex o

f h

ealt

h a

nd

so

cial

pro

ble

ms

Page 13: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Wilkinson & Pickett, The Spirit Level

Index of: • Life expectancy• Math & Literacy

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

– incl. drug & alcohol addiction

• Social mobility

www.equalitytrust.org.uk

Health and social problems are worse in more unequal countries

Ind

ex o

f h

ealt

h a

nd

so

cial

pro

ble

ms

Page 14: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

3.7 3.94.3 4.6 4.8

5.2 5.3 5.6 5.6 5.6 5.76.1 6.2

6.7 6.8 6.87.2

8.5

9.7

4.0

8.0

7.0

3.4

Income gapsHow many times richer are the richest fifth than the poorest fifth?

Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk

Inequality...How much richer are the richest 20% in each country than the poorest 20%?

Page 15: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

www.equalitytrust.org.ukWilkinson & Pickett, The Spirit Level

Child well-being is better in more equal countries

Page 16: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Pickett & Wilkinson, Pediatrics, 2015, doi:10.1542/peds.2014-3549E

Page 17: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk

People in more unequal countries trust each other less

Page 18: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk

People in more unequal states of the USA trust each other less

Page 19: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Male mortality (25-64 yrs) and income inequality in US

states and Canadian provinces.

Source: Ross NA, Wolfson MC, Dunn JR, Berthelot JM, Kaplan GA, Lynch JW. British Medical Journal 2000;320:898-902

Page 20: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

www.equalitytrust.org.ukWilkinson & Pickett, The Spirit Level

Mental illness is more common in more unequal societies

Page 21: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Homicide Rates in relation to Income Inequality

Page 22: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

0

30

60

90

120

150

180

Income Inequality

Ho

mic

ide

s p

er

mill

ion

pe

op

le

Low High

Daly M, Wilson M, Vasdev S. Income inequality and homicide rates in Canada and the United States. Can J Crim 2001; 43: 219-36.

Homicide rates are higher in more unequal

US states and Canadian provinces USA states

Canadian provinces

Page 23: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 24: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

www.equalitytrust.org.ukWilkinson & Pickett, The Spirit Level

Imprisonment rates are higher in more unequal countries

Page 25: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Income inequality and school bullying by 11-year-olds in 37 countries (r = .62)

Elgar FJ, Craig W, Boyce W, Morgan A, Vella-Zarb R. Income Inequality and School Bullying: Multilevel Study of Adolescents in 37 Countries. J. Adolescent Health 2009; 45(4): 351-359 .

Page 26: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Social Mobility is lower in countries with bigger income differences

Page 27: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

27

Literacy Scores of 16-25 year olds by Parents' Education

-1.5

-1

-0.5

0

0.5

1

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Parents' Education (years)

Lit

era

cy

sc

ore

Sweden

Canada

United States

Source: Willms JD. 1997. Data from OECD Programme for International Student Assessment.

Page 28: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Relation between infant mortality and GNP p.c. at high, medium and low income inequality

Hales S, Howden-Chapman P, Salmond C, Woodward A, Mackenbach J.. Infant mortality, gross national product & income distribution. Lancet 1999;

354: 2047

Page 29: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Bigger material differences create bigger social distances and increase social class differentiation

Page 30: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Layte R, Whelan CT. Who Feels Inferior? A Test of the Status Anxiety Hypothesis of Social Inequalities in Health. European Sociological Review, 2014.

Status Anxiety across income deciles for high, medium and low inequality countries

Sta

tus

An

xiet

y

Income deciles

Societies with:-

High inequality

Medium inequality Low inequality

Page 31: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Two recent studies show that inequality increases conspicuous consumption

and consumerism

•People in more unequal areas of the USA are more likely to buy high status cars

•Data from internet searches shows that people in more unequal states are more likely to search for status goods

Page 32: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Source: Bowles S, Park Y. Economic Journal 2005; 115 (507): F397–F412. 2005.

Working hours are longer in more unequal countries

Page 33: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Iacoviello M. Household Debt and Income Inequality, 1963–2003. Journal of Money, Credit and Banking 2008;40(5):929-65.

Household Debt and Income Inequality USA

Page 34: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

0

0.2

0.4

0.6

0.8

1

Other tasks

Tasks with ‘social evaluative threat’ (uncontrollable)

Co

rtis

ol

resp

on

se (e

ffec

t si

ze)

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

What kind of stressful tasks raise stress hormones most?

Page 35: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Stereotype Threat

The effect of caste identity on children's performance

Caste Unannounced

Caste Announced

0

1

2

3

4

5

6

High Caste

Low Caste

Num

ber

of m

azes

sol

ved

Source: Hoff K, Pandey P, World Bank Policy Research Working Paper 3351, June 2004

Page 36: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Robert Sapolsky, Neuro-anatomist at Stanford with a friend from the Serengeti

Page 37: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Johnson SL, Leedom LJ, Muhtadie L. The Dominance Behavioral System and Psychopathology: evidence from self-report, observational, and biological studies. Psychological Bulletin. 2012; 138(4): 692-743.

ABSTRACT: “We begin by describing psychological, social, and biological correlates of the Dominance Behavioral System. Extensive research suggests that externalizing disorders, mania proneness, and narcissistic traits are related to heightened dominance motivation and behaviors. Mania and narcissistic traits also appear related to inflated self-perceptions of power. Anxiety and depression are related to subordination and submissiveness, as well as a desire to avoid subordination. Models of the DBS have received support from research with humans and animals; from self-report, observational, and biological methods; and use of naturalistic and experimental paradigms.”

Page 38: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Messias E, Eaton WW, et al. . Economic grand rounds: Income inequality and depression

across the United States: an ecological study." Psychiatric Services, 2011; 62(7): 710-2.

Depression is more common in more unequal statesP

erce

nt

of

po

pu

lati

on

d

epre

ssed

in

pas

t 2

wee

ks

Income Inequality (Gini)

Page 39: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Loughnan S, et al. Economic Inequality is linked to biased self-perception. Psychological Science, 2011; 22: 1254

Self enhancement increases in more unequal societies

Page 40: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Inequality data from World Top Incomes DatabaseNarcissism data from Twenge JM, et al., Journal of Personality 2008; 76(4): 875-901.

Na

rcis

sim

Sco

re (

NP

I)

Rising Narcissism & Income Inequality in the USA

Page 41: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 42: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Reducing carbon emissions is seen as an unwelcome belt-tightening exercise…But it is an opportunity to increase the real quality of life for all of us

Page 43: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Wilkinson, Pickett, De Vogli. BMJ 2010; 341:1138-1140

CO2 emissions per head (tonnes)

Lif

e ex

pec

tan

cyLife expectancy and CO2 emissions per head

Page 44: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

A Convenient Truth

•material standards are no longer critical determinants of wellbeing in the rich world

•but research on health and happiness shows that the quality of social relations and the social environment has become critical.

Page 45: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

More equal countries recycle more waste

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

Australia

France

Germany

Italy

Japan

Portugal

Spain

Sweden

Switzerland

UK

USA

Best

Worst

Re

cycl

ing

(a

vera

ge

ra

nk)

Low HighIncome Inequality

Page 46: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

More Unequal Countries Emit More C02

From: Wilkinson RG, Pickett KE. The impact of income inequalities on sustainable development in London. A report written on behalf of The Equality Trust, commissioned by the London Sustainable Development Commission, 2010, http://www.londonsdc.org/lsdc/research.aspx.

Page 47: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Business leaders in more equal countries give a higher priority to complying with international environmental agreements

With permission from R De Vogli & D Gimeno

Page 48: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

48

“Growth is a substitute for equality of income. So long as there is growth there is hope, and that makes large income differentials tolerable.” - Henry Wallich, former governor of the US Federal Reserve Bank and professor of economics at Yale.

But...if growth and equality are substitutes, then equality maybe a precondition for a steady-state economy.

Page 49: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

% o

f a

ll in

co

me

ta

ken

by

ri

ch

es

t 1%

Data: Atkinson A, Piketty T, Saez E. Drawn by Acemoglu D, Robinson J, Why Nations Fail.

Changing share of all income taken by the

richest 1% USA

UK

Germany

SwedenNetherlandsFrance

Page 50: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Colin Gordon’s analysis of Historical Statistics for the US, unionstats.com, Piketty and Saez 2003, and World Top Incomes Database. Economic Policy Institute, Washington DC.

Trade Unions membership (% workforce) and Share of Income going to top 10% (USA, 1918-2008)

50

Page 51: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Countries with stronger Trade Unions are less unequal(data for 16 OECD countries 1966-1994)

Ineq

ualit

y (G

ini )

% of labour force in trade unions

Gustafsson B, Johansson M. In search for a smoking gun: what makes income inequality vary over time in different countries? LIS Working Paper 172; 1997.

Page 52: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Mishel L, Sabadish N. Economic Policy Institute Brief #331. Washington, May 2012

Changing ratio of CEO pay to average pay of production & non-supervisory workers in top 350 US companies

Between 1979-2007 the income of the:-Top 0.1% increased by 362%Top 1% increased by 156%Bottom 90% increased by17%

Page 53: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Pay differentials

• Pay ratios in British public sector usually between 1:10 and 1:20

• Average pay ratio in largest 100 UK companies 1:300

• Mondragon Cooperatives (employing 75,000) 1:6

• Swiss Referendum (Nov 2013) on limiting pay differentials to 1:12

Page 54: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Fairness Commissions Set up in 17 major UK cities to report on reducing income differences locally.

Living Wage CommissionChaired by the Archbishop of York. 1480 companies have become living wage employeers.The Scottish Government signed up today!

Page 55: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 56: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

The Problem of Tax Havens

In 2005, the Tax Justice Network estimated that wealthy individuals may hold $11.5 trillion of wealth in off-shore tax havens. This is about a quarter of all global wealth, or about equal to the Gross National Product of the USA.

Tax havens handle (on paper) as much as half of all world trade and banking assets and a third of all foreign investment.

Page 57: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

In 2010 the IMF estimated that the balance sheets of small island financial centres added up to $18 trillion (about 1/3 of world GDP)

In 2008 the US Government Accountability Office reported that 83 of the USA’s biggest 100 corporations had subsidiaries in tax havens.

The Tax Justice network said 99 of Europe’s largest 100 companies also used tax havens

Page 58: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

34 tax havens, including Switzerland, Singapore, Cayman Islands and Jersey, reached agreement with OECD in 2014 to share information on bank accounts with national governments for tax purposes. (Operative from 2017)

13 other tax havens remained without agreement.

Plans were being drawn up for sanctions against non-compliant countries.

Page 59: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Brands owned by the ‘big ten’ food multinationals

Oxfam and www.behindthebrands.org

Page 60: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

“And so, while the end-of-the-world scenario will be rife with unimaginable horrors, we believe that the pre-end

period will be filled with unprecedented opportunities for profit”

Page 61: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

An impossible task?

Reducing CO2 emission and environmental damage while

business continues to maximise sales and consumers continue to

maximise incomes and consumption

61

Page 62: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Naomi KleinThis Changes Everything: capitalism

versus climate

Page 63: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Anti-social actions of multinational corporations

•Undemocratic concentrators of wealth and power•Maximising sales and consumption - throughput•Tax avoidance•Protecting profits against scientific evidence safeguarding the public interest (climate change, pharmaceuticals, tobacco, guns, pesticides, food standards etc.•Regulatory capture•Subverting the democratic process – buying politicians•Running rings round national governments

Page 64: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Trade Union Congress pamphlet, Workers on Board, on employee representation.

In 1960s most shares were owned by individuals with a longer term interest in a few companies. But…

“UK institutional investors… spread their investments across hundreds, if not thousands of companies, increasingly relying on short-term share trading to generated gains.” TUC Gen Sec Frances O’Grady:

“the shareholders of a large listed company will number in the thousands (or) tens of thousands. …it can be difficult for a company even to get full information on who owns their shares.” Janet Williamson (pamphlet author)

Page 65: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Economic democracy (employee owned companies, coops, mutuals)

•“turns companies from being pieces of property into communities”•reduces pay ratios within companies•transforms the experience of work•redistributes wealth & reduces unearned income•improves productivity •is more socially & environmentally responsible …Boards might include employee, community and consumer representatives

Page 66: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 67: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Employee Owned Companies in the UK

The number of employee owned companies has increased by 9% in each of the last three years (under a Conservative led coalition government)

Employee Owned Companies are on target to make up 10% of UK GNP by 2020.

Page 68: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

How to expand the democratic sector (i.e. employee owned companies, coops, mutuals)

• Stronger legislation for employee representation on company boards (as in some EU countries)

• Government loans for employee buyouts

• Tax concessions for democratic businesses

• Take our custom to the democratic sector

• If each year 2% of company shares were transferred to an employee controlled trust, they would be majority shares holders in 25 years

Page 69: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

Building a leisure society

•Richer countries should use increases in productivity to increase leisure rather than consumption.

•Just as greater inequality increases working hours and consumerism, greater equality will give us more leisure

•More time for friends, family and community will increase the real qualityof life

Page 70: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

We can…

•Transform social relations and community life by increasing equality

•Transform experience of work by more democratising economic institutions

•use productivity gains to increase leisure rather than income by decreasing inequality

•Raise the quality of life by meeting social needs

•Achieve sustainability

Page 71: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

71

http://www.equalitytrust.org.uk

For more information:

… a book

and a website…

Page 72: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

http://www.fabians.org.uk/publications/a-convenient-truth/

Page 73: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”
Page 74: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

The contextual effect of income inequality in the 50 states of the USA is stronger for death rates with

steeper social gradients

Wilkinson & Pickett, American Journal of Public Health, 2008; 98(4): 699-704

r = -0.814; p = 0.004

Page 75: ‘Why Greater Equality Makes Societies Stronger’ Richard Wilkinson and Kate Pickett, bestselling authors of “The Spirit Level: Why Equality Is Better for Everyone”

“Take me as an example. I happen to have a talent for allocating capital. But my ability to use that talent is completely dependent on the society I was born into. If I'd been born into a tribe of hunters, this talent of mine would be pretty worthless. I can't run very fast. I'm not particularly strong. I'd probably end up as some wild animal's dinner.”

Warren Buffett ….to Barack Obama in 2006