Part 3: Reducing Inequality
This is part 3 of a 3-part series. In part 1 of this series, we discussed the different types of inequality and the inequalities we should be concerned about. In part 2 of this series, we discussed measuring inequality. Part 2 can be found here.
There is a widespread misconception that the tremendous progress across a range of indicators coincides with rising global inequality, but in fact the data show that: Inequality Index of Human Progress (IHPI), which Vincent Geloso and I created, clearly shows that global inequality has declined. This is true across a range of indicators, including income inequality, education inequality, and most importantly, overall inequality. In fact, on all but two of the dimensions of inequality we analyzed, the world has become more equal since 1990.
Since 1990, global equality has steadily increased in life expectancy, internet access, and education. Equality in political freedom has also improved almost continuously since 1990, although there has been some worrying stagnation in recent years. The recent reversal does not reverse the long-term trend of increasing access to political freedom, but it is a reminder that progress is neither inevitable nor irreversible. Political freedom can be lost if not protected. Globally, incomes became less unequal until the mid-2000s, but income equality has improved considerably since then. For adequate nutrition, the trend line has been erratic, with a shift toward greater inequality in the early to mid-2000s. However, the long-term trend has been that nutritional equality has improved considerably as access to adequate food supplies has become more universal worldwide.
What about the two exceptions? The two indicators of the index show the following trends: more Inequality: Mortality and infant mortality due to outdoor air pollution. Mortality due to air pollution may be a consequence of economic growth in progress. Economists say: Environmental Kuznets Curve (created by Simon Kuznets) predicts that pollution will increase with economic growth until it reaches a critical limit at which pollution declines. The growing gap in deaths from outdoor air pollution could indicate that some countries are in the midst of this transition. As these developing countries become wealthier, they will almost certainly experience improvements in environmental quality similar to those seen in rich countries today.
It is important to remember that in absolute terms, infant mortality has declined globally. The growing inequality in infant mortality outcomes may be due to the fact that since 1990, the decline in infant mortality in high-income countries has outpaced the decline in low-income countries. Infant mortality has declined globally as more and more children have survived beyond their first year of life, but the progress since 1990 appears to have been relatively faster in high-income countries with access to advanced medical technologies.
These exceptions are important, but the most important finding is that overall inequality has declined. In fact, compared to the inequality trends of previous inequality indices that examined fewer dimensions, the IHPI shows a much greater degree of progress toward global equality. This result suggests that previous indices tend to underestimate how far progress has been made, and the proportion of improvements in living standards given to the world’s poorest people. Global equality has grown faster than many people think.
~ inside Adam SmithAt that time, for every very rich person there were at least 500 poor people. Inequality was extreme. The subsequent explosion of wealth has made even ordinary people today poorer than the most 18Day The dream of the century. The world has become a better place in the past few decades. and These achievements have been widely shared. Increased public awareness of the global decline in inequality can strengthen support for the free enterprise and liberalized international trade system that Smith advocated and which has reduced absolute poverty to record levels and made people more equal around the world.
Want more?
Nils Karlson, Is Inequality a Problem? Review The poor and the rich In Econlib
Angus Deaton on Health, Wealth and Poverty At EconTalk
Kerianne Lawson on Equal Economic Freedom In The Great Antidote (with) Great Antidote Extra by Kevin Lavery)
Chelsea Pollett is the editor-in-chief of HumanProgress.org, a project of the Cato Institute that aims to educate the public about improving global well-being by providing free empirical data on long-term progress.
