A common defence of inequality is that it does not matter so long as people are better off than they might otherwise be, or they have enough to get by. Concerns about inequality are then dismissed as dogmatic or naïve because efforts to reduce inequality might make lives worse for those who are doing ‘well’ even they currently have comparatively less than others.
Many people are taken in by this line of argument, but let us unpack what is being said. The ‘better off’ clause is often brought in by comparing prevailing conditions with what happened in the past. For example, why moan about your share of the company’s earnings going down from X% to Y% when your actual pay has gone up? Well, what if the unequal sharing out reflects the power of those in charge to take a larger share? Furthermore, any increase in pay may not lead to a ‘better off’ position, if prices have more widely risen, the bosses are demanding tougher work targets for gains that would mostly go to them, or job security is declining as the hiring/firing power of those in charge grows with their relative financial strengths.
Whether someone is ‘better off’ depends on many conditions other than the extras their bosses give them. The extra pay may not help one keep pace with getting the better life others can take for granted. For example, as medical care improves, it is no consolation to say to someone denied the latest treatment, “you are better off than you would have been fifty years ago”, when other people today can get far more effective help with reducing the pain and curing the condition one is suffering from. The same goes for the notion of ‘enough to get by’. Are we supposed to peg the standards of ‘getting by’ to survival in primitive times, or attaining the average lifespan of 30 or 40 years in a medieval village? Or do we factor in how society has developed, and what resources and opportunities now exist for people to utilise?
How those resources and opportunities are generated and accessed depends on the socio-political arrangements that are in place. And here is where inequality poses an even deeper problem that no one can ignore.
Inequality in wealth inevitably brings inequality in power. That power gap has meant that the rich can (and some certainly do) load the societal dice in their own favour at every turn. The more obvious tactics include: donations to politicians and parties that would help them and hinder those who might not comply with their agendas (e.g., workers, unions, environmental activists); hiring expensive lawyers and lobbyists to make sure the legal system works as far as possible for their benefit at the expense of those who cannot afford to fight back; and funding media and ‘thinktank’ output that promotes initiatives that would help strengthen their position.
Meanwhile, those with a dwindling share of wealth and power find themselves with less influence over public polices and suffer accordingly. Housing becomes a growing problem for them whatever they earn at the bottom half (two-thirds even) of the income pyramid, as the wealthy buy up properties as investment. The superrich also buy up havens aboard and live in pristine surroundings, while others pay the price for the polluted air and dire water management coming from companies owned by wealthy investors. Educational betterment is increasingly reserved for those from rich families as universities become unaffordable for most.
We now come to the ‘Let Sleeping Inequalities Lie’ line – based on the alleged wisdom that attempts to tackle inequality could just make things worse for everyone. This simply ignores what the New Deal achieved in the US, the impact of Attlee’s post-war reforms, and the enviable quality of life (as measured by every global indicator) attained by the Nordic countries through their inequality-reducing policies. Inequalities in power should and could be reduced to improve our lives. What’s more, left to fester, they might well bite back with a vengeance.