Theres been an interesting discussion in the media over the past few days about some new research from the University of Melbourne on inequality. The reseach found that the income share of the top 1% of Australians has been relatively stable for the past eight years. Since 2006, the 180,000 Aussies in the top 1% of incomes have earned around 7.7% of all incomes (no wonder, when theyre earning an average of just under $400,000 a year!). In reporting these findings, some journalists have argued that this means inequality is no longer a problem in Australia. I think that view is wrong - a pause in the rate at which inequality is growing does not mean that inequality is shrinking. After all, a community in which 1% of people earn 7.7% of all income seems pretty unequal to me! What I think this research really shows is that the policies put in place by the last Labor Government to redistribute wealth more equally in our community were working. Slowing the growth of inequality is a good start towards reducing it in absolute terms, and we should work to protect policies which support this. That includes programs like the Low Income Super Contribution scheme and health and education initiatives for Indigenous Australians. So while this new research is useful, it doesnt mean we should stop caring about inequality or taking steps to fight it just yet.
Posted on: Tue, 29 Jul 2014 23:57:08 +0000
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