The Corrosive Effect of Inequality
Income Inequality Negatively Impacts Individuals & Society
“An imbalance between rich and poor is the oldest and most fatal ailment of all republics.” ~ Plutarch
Income inequality in the United States has been steadily increasing for more than 50 years. Inequality is a global problem, and the inequality within countries is growing. Oxfam reports that the number of billionaires in the world doubled between 2008 and 2018. Now, the 26 richest people in the world have as much wealth and half the world’s population. This extreme inequality has corrosive effects on individuals and society as a whole.
The Effects of Inequality on Individuals
The massive scale of income inequality and number of people living on the edge creates a host of problems for the individuals living on the lower end of the spectrum. The effects of inequality cause widespread harm in terms of health, stress levels, lack of access to educational opportunities, and general unhappiness.
Inequality has a negative impact on health, including individual and public health. Several studies have demonstrated that inequality has a negative effect on physical and mental health. Infant mortality rates, obesity, mental health problems, death rates from the most common causes of death, and drug abuse are all higher in less equal societies.
In the United States, high rates of inequality leaves large numbers of people without adequate healthcare. Low income workers often have no health insurance or paid sick time. This means that they can’t afford to take off work or go to the doctor when they get sick. Too often, maladies that could have been cured easily become much more serious when people can’t get prompt medical treatment.
The stress of poverty and living in a stratified society contributes to poor health. The influence of chronic stress on physical and mental health have been well documented. Chronic stress can put an individual at higher risk of anxiety, depression, heart disease, high blood pressure, stroke, sleep problems, and more. Even in countries with universal health care, the stress of poverty and extreme income inequality leads to worse health.
For most people, it comes as no surprise to learn that inequality is associated with unhappiness. What may be surprising is the finding that more inequality makes everyone less happy, even those that are financially secure. Using data from the Gallop World Poll and the World Top Incomes Database, researchers found that more wealth concentrated among the top 1% is associated with lower levels of life satisfaction and an increase in negative daily emotional experiences.
How Inequality Harms Society
Although inequality may seem great for the people at the top, it actually hurts all of society. Research by the Organisation for Economic Cooperation and Development (OECD), shows that inequality hurts economic growth. OECD’s research showed that the largest impact on economic growth is the increasing gap between the lower middle class and the poor. As this gap continues to widen, economic growth is further harmed.
Economic growth is affected by inequality in a number of ways, including undermining educational opportunities and skills development in students from lower socioeconomic backgrounds. According to OCED, the way to ensure sustained economic growth is to address inequality. Suggestions include increasing access to education, training, and healthcare to reduce inequality over time.
Environmental damage is linked to inequality in a few different ways. Countries with more inequality are more likely to suffer the most from environmental damage and have more trouble recovering. The World Bank looked at the impacts of climate change on poverty. Among the findings is that climate change creates an obstacle to escaping poverty and that poor people are more vulnerable to the impacts of climate change. As the effects of climate change increase, it is expected to have an even greater impact in terms of diseases, food insecurity, and more extreme weather events.
Other negative impacts of inequality in societies include:
· Increased crime and violence
· Lower levels of compassion
· Higher hostility levels
· Reduced trust
· Decreased social cohesion
· Increased polarization
· Greater instability
· Resistance to immigration
· Less willing to help marginalized groups
This problem is not only happening in the United States. The UN tracks and works to confront global inequality. They have found that, since the 1990s, inequality between countries has actually decreased but inequality within countries has increased. As a result, 71% of the population of the world lives in a country where inequality has increased. The United States is one of those countries.
Income inequality is bad for all of us, both on the individual level and for society as a whole. While there are many things that individuals and the private sector can do to solve problems, dealing with income inequality requires action by the government. There are things that can be done, such as addressing low wages, lack of healthcare, and making quality education more accessible to more people. We can use our voices to encourage our representatives to support measures that help reduce inequality.
