1. Photo by kind permission of Matt Stuart Towards A More Equal Europe Richard Wilkinson Emeritus Professor of Social Epidemiology

2. Source: Atkinson AB, Leigh A. (2004) Understanding the Distribution of Top Incomes in Anglo-Saxon Countries over the Twentieth Century Income share of richest 1% in Anglo-Saxon countries 1921-2002

3. Colin Gordon’s analysis of Historical Statistics for the US, unionstats.com, Piketty and Saez 2003, and World Top Incomes Database. Economic Policy Institute, Washington DC. Trade Unions membership (% workforce) and Share of Income going to top 10% (USA, 1918- 2008)

4. Countries with stronger Trade Unions are less unequal (data for 16 OECD countries 1966-1994) Inequality (Gini ) % of labour force in trade unions Gustafsson B, Johansson M. In search for a smoking gun: what makes income inequality vary over time in different countries? LIS Working Paper 172; 1997.

5. 5 Income per head and life-expectancy: rich & poor countries Source: Wilkinson & Pickett, The Spirit Level (2009) www.equalitytrust.org.uk

6. Wilkinson & Pickett, The Spirit Level Life expectancy in rich countries is no longer related to National Income per head

7. Richest Poorest Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk Life expectancy is strongly related to income within rich countries

8. Wilkinson & Pickett, The Spirit Level Index of: Life expectancy Math & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility www.equalitytrust.org.uk Health and social problems are worse in more unequal countries Index of health and social problems

9. www.equalitytrust.org.uk Wilkinson & Pickett, The Spirit Level Neither health nor social problems are related to national income per head Index of: Life expectancy Math & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility Index of health and social problems

10. www.equalitytrust.org.uk Wilkinson & Pickett, The Spirit Level Child well-being is better in more equal countries

11. www.equalitytrust.org.uk Wilkinson & Pickett, The Spirit Level The UNICEF Index of Child Wellbeing is not related to National Income per head

12. “Poverty is not a certain small amount of goods, nor is it just a relation between means and ends; above all it is a relation between people. Poverty is a social status. As such it is an invention of civilization. It has grown with civilization...as an invidious distinction between classes….” Sahlins M.. 1974

13. Absolute and relative poverty

14. Income inequality & bullying in 37 countries Elgar FJ, Craig W, Boyce W, Morgan A, Vella-Zarb R. Income Inequality and School Bullying: Multilevel Study of Adolescents in 37 Countries. J. Adolescent Health 2009; 45(4): 351-359.

15. Social fabric and inequality Less trust Weaker community life More violence More status anxiety Stronger class identification Less willing to help others – incl elderly & disabled More ‘self-enhancment’

16. Johnson SL, Leedom LJ, Muhtadie L. The Dominance Behavioral System and Psychopathology: evidence from self-report, observational, and biological studies. Psychological Bulletin. 2012; 138(4): 692-743. ABSTRACT: “We begin by describing psychological, social, and biological correlates of the Dominance Behavioral System. Extensive research suggests that externalizing disorders, mania proneness, and narcissistic traits are related to heightened dominance motivation and behaviors. Mania and narcissistic traits also appear related to inflated self- perceptions of power. Anxiety and depression are related to subordination and submissiveness, as well as a desire to avoid subordination. Models of the DBS have received support from research with humans and animals; from self-report, observational, and biological methods; and use of naturalistic and experimental paradigms.”

17. www.equalitytrust.org.uk Wilkinson & Pickett, The Spirit Level Mental illness is more common in more unequal societies

18. Messias E, Eaton WW, et al.. Economic grand rounds: Income inequality and depression across the United States: an ecological study." Psychiatric Services, 2011; 62(7): 710-2. Depression is more common in more unequal states Percent of population depressed in past 2 weeks Income Inequality (Gini)

19. Burns JK, Tomita A, Kapadia AS. Income inequality and schizophrenia. International Journal of Social Psychiatry 2013 Schizophrenia is more common in more unequal countries

20. Other tasks Tasks with ‘social evaluative threat’ (uncontrollable) Cortisol response (effect size) Dickerson SS, Kemeny ME. Acute stressors and cortisol responses. Psychological Bulletin 2004; 130(3): 355-91. What kind of stressful tasks raise stress hormones most?

21. Loughnan S, et al. Economic Inequality is linked to biased self-perception. Psychological Science, 2011; 22: 1254 In more unequal countries people abandon modesty and emphasise their achievments

22. Consumerism Social and environmental costs The social deficit

23. Mishel L, Sabadish N. Economic Policy Institute Brief #331. Washington, May 2012 Changing ratio of CEO pay to average pay of production & non-supervisory workers in top 350 US companies Between 1979-2007 the income of the:- Top 0.1% increased by 362% Top 1% increased by 156% Bottom 90% increased by17%

24. The bonus culture Replaces intrinsic motivation with extrinsic motivation It increases sense of superiority, narcissism, hubris and antisocial tendencies. (300:1 pay ratios) The interests of the rich are an obstacle to economic and social progress

25. Extending democracy into economic life has to be our central objective. Companies have two functions: to make the goods and services we all use, and to concentrate power and wealth. We need the first but not the second! Economic democracy turns companies from being pieces of property into communities More democratic companies have much smaller pay differences They transform the experience of work – sense of purpose, self-worth, valued contribution Employee buyouts redistribute wealth and reduce unearned income Boards can include community and consumer representative as well as employees More democratic companies have higher productivity (see Blasi, Freeman & Kruse 2013)

27. Wilkinson, Pickett, De Vogli. BMJ 2010; 341:1138-1140 CO 2 emissions per head (tonnes) Life expectancy Life expectancy and CO 2 emissions per head

28. Source: NASA-GISS, CDIAC, NOAA ESRL

29. Merrifield MA, Merrifield ST, Mitchum GT. An anomalous recent acceleration of global sea level rise. J. Climate, 2009, 22, 5772–81. Millimetres rise per year Annual rise in mean sea levels

30. Source: Bowles S, Park Y. Economic Journal 2005; 115 (507): F397–F412. 2005. Working hours are longer in more unequal countries

31. Business leaders in more equal countries give a higher priority to complying with international environmental agreements With permission from R De Vogli & D Gimeno

32. More equal countries recycle more waste Source: Wilkinson & Pickett, The Spirit Level (2009)

33. …Progress… The rich world has reached the end of the real benefits of economic growth But sustainability is not a belt-tightening sacrifice; instead it involves raising the real Quality of Life We can tackle the social deficit and improve the real QoL by increasing equality. We should Increase equality by extending democracy into economic sphere. By taking this path we will:- Transform social relations Transform experience of work Raise the real QoL by meeting social needs Achieve Sustainability

34. Photo by kind permission of Paula Geraghty

37. 37

38. Income gaps How many times richer are the richest fifth than the poorest fifth? Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk Inequality... How much richer are the richest 20% in each country than the poorest 20%?

39. Outcomes with social gradients Life expectancy Math & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility

40. Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk People in more unequal countries trust each other less

41. Wilkinson & Pickett, The Spirit Level www.equalitytrust.org.uk People in more unequal states of the USA trust each other less

42. 42 Infant Mortality Rates are Higher in More Unequal Countries Source: Wilkinson & Pickett, The Spirit Level (2009) www.equalitytrust.org.uk

43. Daly M, Wilson M, Vasdev S. Income inequality and homicide rates in Canada and the United States. Can J Crim 2001; 43: 219-36. Homicide rates are higher in more unequal US states and Canadian provinces USA states Canadian provinces

44. www.equalitytrust.org.uk Wilkinson & Pickett, The Spirit Level Imprisonment rates are higher in more unequal countries

45. 45 Teenage Birth Rates are Higher in More Unequal Rich Countries Source: Wilkinson & Pickett, The Spirit Level (2009) www.equalitytrust.org.uk

46. Wilkinson & Pickett, The Spirit Level Social mobility is lower in more unequal countries

47. Social Relations Child conflict Homicide Imprisonment Social capital Trust Bigger income gaps lead to deteriorations in:- Human Capital Child wellbeing High school drop outs Math & literacy scores Social mobility Teenage births Health Drug abuse Infant mortality Life expectancy Mental illness Obesity …but not suicide

48. Effect of a 0.01 unit increase in Gini coefficient on deaths 1986-2006 among 701,179 respondents. (125,391 deaths) Data from U.S. National Health Interview Survey (NHIS) 1986-2004 with mortality follow-up data 1986-2006. Zheng H. Do people die from income inequality of a decade ago? Social Science & Medicine 2012; 75: 36-45. Changes in income inequality affect mortality 3-12 years later

49. Leon, D. A., D. Vagero, et al. (1992). "Social class differences in infant mortality in Sweden: comparison with England and Wales." Brit Med J 305(6855): 687-91. The benefits of greater equality are not confined to the poor but extend to all social classes Infant mortality by class: Sweden compared with England & Wales

50. 50 Source: Willms JD. 1997. Data from OECD Programme for International Student Assessment.

51. Wilkinson & Pickett, The Spirit Level Index of: Life expectancy Math & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility www.equalitytrust.org.uk Health and social problems are worse in more unequal countries Index of health and social problems

52. Income differences increase social class differentiation Bigger income differences make:- Class more important The social pyramid higher and more hierarchical The quality of social relations deteriorates

53. More inequality More superiority and inferiority More status competition and consumerism More status insecurity More worry about how we are seen and judged More “social evaluation anxiety” (threats to self-esteem & social status, fear of negative judgements Valued or Devalued?

54. 54 The effects of inequality - a two stage process 1.adult experience of inequality 2.passed on to children – epigenetics?

55. UK Japan USA UK France Japan Share of income going to top 0.1% (1886-2010) The World Top Incomes Database Facundo Alvaredo, Tony Atkinson, Thomas Piketty, Emmanuel Saez http://g-mond.parisschoolofeconomics.eu/topincomes http://g-mond.parisschoolofeconomics.eu/topincomes

56. Rising income inequality in Britain 1979-2011 Inequality (Gini) Cribb J, Joyce R, Phillips D. Living standards, poverty and inequality in the UK: 2012. Institute for Fiscal Studies, London 2012

57. What should they earn? British Social Attitudes Survey 2010 Chairman of large national company £100,000 Cabinet Minister £60,000 Unskilled Factory Worker £16,000 Shop Assistant £16,000 Ratio top to bottom 1 : 6.25

58. What can be done? Taxes & benefits Stop tax avoidance End tax havens Make taxation progressive again Income differences before tax Stronger Trade Unions Increase company democracy - employee ownership etc Promote more directors from within companies Sustainability needs greater equality

59. Photo by kind permission of Matt Stuart

60. 60 http://www.equalitytrust.org.uk For more information: … a book and a website…

61. TUC pamphlet, Workers on Board, on employee representation. In 1960s most shares were owned by individuals with a longer term interest in a few companies. But… Introduction from TUC Gen Sec Frances O’Grady: “UK institutional investors… spread their investments across hundreds, if not thousands of companies, increasingly relying on short-term share trading to generated gains.” Pamphlet author Janet Williamson: “the shareholders of a large listed company will number in the thousands (or) tens of thousands. …it can be difficult for a company even to get full information on who owns their shares.”