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Will Snell's avatar

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Anthony Magauran's avatar

Inequality is not a condition waiting to be treated. It is a description of the distribution of a chosen attribute within a specified population over a particular period.

Inequality does not act upon anyone. It summarises the effects of processes that do: poor education, restricted access to employment, inherited advantage and many others. The difficulty is that the observed distribution does not reveal which of these processes produced it.

Nor does a reduction in inequality necessarily mean that those at the bottom have become better off. Inequality may fall because their circumstances have improved, but it may also fall because those who were better placed have become worse off. The badly off may gain nothing and could even lose if those affected alter their behaviour to avoid the policy.

Aggregate patterns such as inequality do not have single causes. Government must therefore be confident that its policies address the relevant causes rather than merely alter the statistic. A wealth tax, for example, may do nothing to correct inequality arising from poor education or restricted employment opportunities.

Government should intervene only when it understands the mechanism it is trying to change. It should not act merely to show that it is doing something about a statistical distribution it regards as undesirable.

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