The rich and the rest Annual income in $ $150,000 $300,000 $25,000 $10,000

World famous – for inequality Once among the most equal rich countries From the mid-80s to the mid-2000s, rich worlds biggest rise in rich-poor gap Now among the most unequal rich countries Most unequal since records began in 1982 (despite extra working hours) For wealth, the top 1% own 16% of all wealth – three times as much as the bottom half Disproportionate effect on Maori and Pasifika

So why is it an issue? THREE REASONS TO CARE: Social corrosion and division Health and social problems increase Economic growth is weaker

Germany ·Sweden Finland Norway Denmark United Kingdom France · Japan New Zealand United States January The Great Gatsby Curve Higher income inequality associated with lower intergenerational mobility Intergenerational earnings elasticity Inequality (1985 Gini Coefficient) Source: Corak (2011), OECD, CEA estimates

What to do? Getting people into work Skills training and schools Making work pay Changing the power balance When work is done Higher taxes, more support

Continuing the debate… Robert Wade talks Book tour in August-September