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Income Inequality & the Pursuit of Poverty

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Book Review: “The Spirit Level: Why Greater Equality Makes Societies Stronger” by Richard Wilkinson and Kate Pickett

The headline trumpeting from USA Today this morning is chilling:

“Poverty at 15.1%, Highest since ’93: 10-year income drop USA’s 1st in 5 decades.”

The average American is poorer today than he was 10 years ago.  Nearly 1 in 6 Americans live in poverty with a staggering 2.6 million people slipping below the poverty level in the last decade.  As a result, the United States now has the most people living in poverty – 46.2 million – since 1959.

This plunge in income comes with consequences:

  • Americans without health care insurance now stands at 16.3% – up from 13.1% in 2000.
  • Older Americans were the only group that improved during the decade.  Those 65 and older saw income rise 7.5% – mainly because they were aided by Social Security benefits.
  • Forty-eight million Americans between the ages of 18 and 65 were unemployed last year.

It would be easy to blame these unfortunate statistics on the Economic Recession of 2008.  But that’s not the root cause of the problem. A provocative book published in 2009 called “The Spirit Level: Why Greater Equality Makes Societies Stronger” makes a strong argument that income inequality is at the center of the U.S. decline.

With concise detail “The Spirit Level” makes the case that the greater the income gap in rich countries – the larger the societal ills.  The book focused on 11 different health and social problems: physical health, mental health, drug abuse, education, imprisonment, obesity, social mobility, trust and community life, violence, teenage pregnancies, and child well-being.

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All 11 problems are much worse in unequal societies like the United States and Great Britain, but significantly better in countries that are more equal like Japan, Sweden and Denmark.

One of the most interesting findings of the book is that the societal ills caused by income inequality don’t just effect the poor in the unequal countries, but the wealthy as well.  For example, obesity in the U.S. is a problem that stems from income inequality, but infects everyone – rich and poor.

The United States is, by far, the most unequal developed country in the world, according to the book. With the wealthiest 10 percent owning two-thirds of the net worth of the U.S., it is getting difficult to argue that U.S. hasn’t become an unequal society and that changes should be made to level the playing field and distribute wealth more equally.

Yet there are still calls for fewer taxes on the rich and on corporations (which had among the lowest taxes in history during the last 10 years – yet failed to create jobs or distribute wealth downward).

“The Spirit Level” is written for the layman and is an engrossing and empowering read.  The book has been gaining more attention in recent months with the authors being featured on television news and on NPR.

As the topics of taxes, job creation, and income distribution take center stage during the upcoming election, “The Spirit Level” should be must-reading for any well-informed voter.

BUY THE SPIRIT LEVEL AT AMAZON.COM

Links:

USA Today article

Source for charts: Mother Jones


Image may be NSFW.
Clik here to view.
Image may be NSFW.
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