Increasing Equality by Matthew Bain

According to Lord Griffiths, the Conservative peer and Vice-Chairman of investment bank Goldman Sachs “we have to accept that inequality is a way of achieving greater opportunity and prosperity for all”. Has he hit on a clever, counter-intuitive truth ? No, he is just plain wrong.

In their book The Spirit Level, Richard Wilkinson and Kate Pickett show that practically all the problems of modern societies, from child mortality to drug addiction, mental illness to obesity, murder rates to environmental pollution, have the same root cause – inequality. “It became clear,” according to Wilkinson, “that countries such as the US, the UK and Portugal, where the top 20% earn seven, eight or nine times more than the lowest 20%, scored noticeably higher on all social problems at every level of society than in countries such as Sweden and Japan, where the differential is only two or three times higher at the top.”

We all know that the endless pursuit of economic growth is crazy, that higher GDP is a meaningless quest that does nothing to increase our collective happiness or well-being. What Wilkinson and Pickett show is that we must measure our society’s success in terms of increasing equality, because this is the only reliable recipe for “greater opportunity and prosperity for all”.

Gandhi famously said:

“I will give you a talisman. Whenever you are in doubt, or when the self becomes too much with you, apply the following test. Recall the face of the poorest and the weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him. Will he gain anything by it ? Will it restore him to a control over his own life and destiny ? In other words, will it lead to swaraj for the hungry and spiritually starving millions ? Then you will find your doubts and your self melt away.”

Tackling poverty is essential if we are to achieve an equal and just society. So is confronting greed. Although the Labour government has taken certain steps towards reducing poverty, such as introducing family tax credits, they have done nothing to restrain the rapacious behaviour of the economic elites. Peter (now Lord) Mandelson said in 1998 “we are intensely relaxed about people getting filthy rich”. We now see the damage that this laissez-faire attitude has caused, and is still causing.

So what is the answer ? Redistribution of wealth ? In fact the first thing we need to do is STOP redistributing wealth. The current system is set up to redistribute wealth from the poor to the rich. We see this clearly in the bailout of the banking system, where we have all dug deep into our pockets to keep the bonus culture afloat. We see it evidently in the various forms of privatisation, taking property that previously belonged to us all, and handing it to a small section of the population. We see the government choose to fund public infrastructure through expensive private finance, when it could borrow the money itself at much lower rates of interest. All of this is designed to make the taxpayer fund the profits of private corporations. It is not sour grapes to say “enough is enough”, it is a sane recognition that for as long as the ever-widening gulf of inequality in our society is allowed to grow, we will become sicker, fatter, and more likely fall victim to crime and violence.

Matthew Bain is the Administrator and Webmaster for The Gandhi Foundation as well as a GF Friend.

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