Labour Research December 2004

Reviews

Why inequality matters

Ben Jackson and Paul Segal, Catalyst, 64 pages, £5.00

In an age when attempts to reduce inequalities of wealth are seen by even left-of-centre politicians as dangerous meddling with free-market mechanisms, this working paper from an "independent think tank of the left" clearly and concisely explains why Britain's growth in economic inequality is a serious cause for concern.

It convincingly argues that reducing poverty and promoting social inclusion cannot be achieved unless income is more equally distributed. In response to claims that reducing inequality damages the economy, it points out flaws in this argument and ultimately finds no evidence that redistributive policies have any effect on a country's overall wealth.

Its mound of statistical evidence and reference to left-wing thinkers of the past century make this a persuasive contribution to the debate.