Frank Stilwell
The political economy of inequality
Sydney Ideas
Emeritus Professor, Department of Political Economy
University of Sydney
A University of Sydney, Sydney Ideas event
Key themes
Patterns
• Dimensions and extent of inequality –within and across countries, and globally
Processes
• What shapes 'who owns what?' and 'who gets what?'
Problems
• Economic, social and environmental effects of inequality, and its impact on happiness
Politics
• Strategies and policies for pursuing egalitarian goals
Prospects
• Obstacles and drivers of progressive change
The political economy of inequality, Frank Stilwell
World income inequality, 2016
Source: World Income Database, http://wid.world/data
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Inco
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os)
Population Percentile
Intra-national income inequalities:Growth in the share of the top 10%
Source: World Inequality Report 2017.http://wir2018.wid.world/files/download/wir2018-full-report-
english.pdf, p. 10
World income distributionpercentage change, 1988 – 2008
Source: Milanovic, http://heymancenter.org/files/events/milanovic.pdf
World income distributionpercentage change, 1980 – 2016
Source: World Inequality Report 2017
The top 500 billionaires by country, 2018
Source: World Inequality Report 2017
Country Number of Billionaires
United States of America 155
China 39
Germany 39
Russian Federation 27
India 25
Hong Kong 17
Brazil 15
United Kingdom 15
Canada 13
France 13
Sweden 13
Thailand 8
Japan 7
Mexico 7
Switzerland 7
South Korea 6
Australia 6
The 1%’s share in USA, 1980 – 2016
Source: World Inequality Report 2017
The 1%’s income share in Western Europe, 1980 – 2016
Source: World Inequality Report 2017, p. 1
Global economic inequality in the 21st century
Counterveilingtendencies•Trade unions•Social democratic states
Circular and cumulative causation•Wealth and poverty•Inheritance
Contemporary political economic changes•Globalisation•Financialisation•Neoliberalism•Urbanisation•Technological change
Driving disparities
The political economy of inequality, Frank Stilwell
The share of wages in total income
Source: International Monetary Fund, http://www.imf.org/en/Publications/WEO/Issues/2017/04/04/world-
economic-outlook-april-2017#Chapter 3, p. 122.
The decline of public wealth
Source: World Inequality Report 2017, p. 15
Economic inequality, health and social problems
Source: Wilkinson and Pickett 2010, p. 20
Income inequality and social mobility
Source: Dorling 2017, p. 25
• ‘Raising the floor’• ‘Lowering the ceiling’• Creating greater equality of opportunity in the intervening space
RE-DISTRIBUTION:• Government taxes and expenditures
PRE-DISTRIBUTION:• Basic income• Civilising the corporation/challenging corporate power• Extending the commons
Policies for greater equality
The political economy of inequality, Frank Stilwell
Shifting shares: prospects
Source: World Inequality Report 2017, http://wir2018.wid.world/files/download/wir2018-full-report-
english.pdf
The political economy of inequality, a Sydney Ideas event
Necessary elements in social change:• CRITIQUE• VISION• STRATEGY• ORGANISATION
Now, what action?• A PERSONAL CHALLENGE…
Making a difference
The political economy of inequality, Frank Stilwell