I read some interesting facts about inequality in the UK today, including the alarming fact that the UK is the fourth most unequal country for income distribution in the OECD and most unequal in Europe (although, interestingly levels of wealth inequality are comparatively low). That’s pretty bad. However, when I looked at the list of countries with lower income inequality than the UK, I quickly realised that I’d rather be at the bottom of the UK income bracket than in many of the countries that do better than us.
Inequality is a good indicator of a problem, but it’s not necessarily what really matters. What matters more is well-being, and whilst inequality is certainly an important contributing factor for well-being, its not everything.
The UK is fourth worst in the OECD for income inequality and the worst in Europe, but it also ranks well for quality of life. The US rates worse than the UK for inequality, but better for quality of life. Russia ranks better than the UK for inequality, but much, much worse for well-being. As an alternative to the OECD’s Better Life Index, you can also check out the Social Progress Index (we rank pretty well in that too). The OECD also provide a really interesting tool for viewing regional well-being, that too casts a different light on the inequality figures.
Inequality isn’t bad for its own sake, it’s bad because it can indicate or contribute to other things which are bad: poverty, social stigma, ability to influence political community etc. So, whilst it’s bad that we have high levels of various types of inequality compared to other developed countries, the UK is actually good place to live and we ought to think carefully about whether the measures being used to support various arguments tell the whole story.