The political economy of inequality Frank Stilwell Emeritus - PowerPoint PPT Presentation

Sydney Ideas The political economy of inequality Frank Stilwell Emeritus Professor, Department of Political Economy University of Sydney A University of Sydney, Sydney Ideas event

Key themes Patterns Processes Problems Politics Prospects • Dimensions • What shapes • Economic, • Strategies • Obstacles and and extent of 'who owns social and and policies drivers of inequality – what?' and environmental for pursuing progressive within and 'who gets effects of egalitarian change across what?' inequality, and goals countries, and its impact on globally happiness The political economy of inequality, Frank Stilwell

World income inequality, 2016 120000 100000 80000 Income (Euros) 60000 40000 20000 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 1 p p p p p p p p p 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 1 2 3 4 5 6 7 8 p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 p 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p Population Percentile Source : World Income Database, http://wid.world/data

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 distribution percentage change, 1988 – 2008 Source : Milanovic, http://heymancenter.org/files/events/milanovic.pdf

World income distribution percentage change, 1980 – 2016 Source : World Inequality Report 2017

The top 500 billionaires by country, 2018 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 Source : World Inequality Report 2017

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

Driving disparities Contemporary political economic changes •Globalisation •Financialisation Circular and •Neoliberalism cumulative •Urbanisation causation •Technological change •Wealth and poverty •Inheritance Counterveiling tendencies •Trade unions •Social democratic states Global economic inequality in the 21 st century 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

Policies for greater equality • ‘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 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

Making a difference Necessary elements in social change: • CRITIQUE • VISION • STRATEGY • ORGANISATION Now, what action? • A PERSONAL CHALLENGE… The political economy of inequality, Frank Stilwell