Most of the readers are holding a grudge against inequality, it nearly becomes an common sense. But during recent researches, the sense of narrowing the gap between rich and poor started to be questioned. After researching a lot of papers and gathering information, we can come to a conclusion that inequality doesn’t matter that much.
At the beginning of the discussion, we must know that the Gini coefficient is the most common way to measure inequality. It’s a number between 0 to 1, as perfect equality to the worst inequality. In America, for example, the people of average income stand at the 3/4 position of the popularity. This means the high average income level, but doesn’t mean the huge gap between rich and poor. The situation is that the income of the wealthiest 1% people rose a lot in the past decades, but in the same period inequality hasn’t risen for the bottom 99% of the population. So we can see that there’s no need to worry about inequality for the bottom 99% of us.
Inequality doesn’t cause a lot of trouble for the society either. Although there are statistics about relations between inequality and social problems, the statistical problems are tricky enough. There are uncertain variables in different countries. For example, there are higher murder rates in America, probably it’s because the citizens of the United States are better armed. Or like divorce and suicide rates, they are worse in more equal countries. But at the spirit level, inequality does bring less happiness. The argument is that inequality causes chronic stress, and makes people secrete too much of a hormone called cortisol, which can harm among other things like the brain and the immune system.
Not only the bottom 99% of us, but also the weathiest 1% has this problem, they may feel even more unequal than us. The top 1% of the rich earned 20 times than the rest. But for the top 0.1%, the gain rose 80 times rather than 20 times. They are not feeling better at all. At the same time, they are running comparison too, and they may suffer more while comparing with the other parents at their children’s private schools. While we comparing with the rich rather than normal people in the community, there’s no need to grow an unequal feel for our lives. Let along that the rich is helping the poor, they are shaping the politics, business and technology, but they also shape philanthropy.
But everyone wants to become rich, though there are many ways but robbing the rich. Inequality jars less if the rich have earned their fortunes. People from humble origins sometimes rise to the top through brainpower. The social class is still flowing and the clever shall inherit the earth. Nowadays, better education cost more. For educated parents who typically earn more, they can afford private schools or houses near good public ones. School reform helps, but cannot level the playing field. To get better education equally for children is an emergency for the governments.
We do admit that there is a lot of work to do to fight against inequality. But maybe we should reconsider this concept. Inequality doesn’t matter that much. And just because of inequality, the social class flows, the competing continues, the society keeps developing.
Quoting: Economist Print Edition (20th 2011) Unbottled Gini, More millionares than Australians, The few, The rise and the rise of the cognitive elite