Inequality in societies - review of impact.

Why are people in some countries more relaxed than in others? Why are we so worried about what others think of us, and often feel stress in society? Why are mental illnesses three times more common in the US than in Germany? Why is the American dream more real in Denmark and Norway? What affects the well-being of children? 

All discussions come down to economic growth, like a magic pill. But few speak of equality in society, equal access to resources and opportunities.

I read the wonderful book The Inner Level on this topic. The authors show that the answer to these questions is INEQUALITY IN SOCIETY. It is very interesting to study the relationship of inequality in society with all of the above-mentioned problems.

So, the main conclusions of researchers about countries with a high level of inequality in society:

1. People in these countries are worried that their social status will be evaluated by other people.

2. A higher percentage of the population with mental problems, depression, and other disorders.

3. The involvement and participation of civil society (belonging to organizations, active groups, political parties, trade unions) is much lower than in countries with more equal incomes.

4. The level of empathy and desire to help other people is reduced.

5. The number of people with excessively high self-esteem (a trend towards narcissism) is growing, those who headed companies and even countries (the authors cite Donald Trump as an example).

6. There is a growing need in society to present oneself better than other people, and such a thing as “turbo-consumerism” appears. Interestingly, the cost of marketing and advertising (as% of GDP) is much higher in countries with high levels of inequality.

7. There is a correlation between the rate of well-being of children (Child wellbeing index by UNICEF) and the level of inequality in the country. Math and literacy levels are higher in countries where inequality is lower. Bullying in schools in more equal countries is rare. In Ukraine, bullying at an extremely high level, regardless of inequality in society.

8. Of course, the level of social mobility (the so-called social elevator) is higher. In equal societies, children are much more likely to get a good education, a well-paid job and go upstairs in their social elevator.

For deeply interested🤓

The main indicator in the research is the Gini coefficient, which shows the degree of stratification of society, economic inequality in the country, i.e. unequal distribution of income and opportunities in society (where 0 is absolute equality and 1 is absolute inequality).

 Countries with a high level of inequality in the Gini coefficient:

- among the countries of the world these are South Africa (0.62), Chile (0.46), Mexico (0.46), Turkey (0.40) - according to political regimes, it is clear why these countries

- among the G7 countries - the United States, then the United Kingdom (here the corporate world, low taxes for the rich)

- among the countries of Western Europe - Italy and Spain (here Don Corleone 😊)

- It is interesting that in Ukraine, as a whole, the level of inequality is rather low🤔 The growth of inequality in society began under Kuchma and peaked in 2006 (0.298). Under Yushchenko and after, the indicator began to decline - until 2014 (0.24). After the start of the conflict in Ukraine, the inequality coefficient in Ukraine increased by almost 10% and amounted to 0.263 in 2018. However, it doesn`t take into account the so-called “grey economy”, which unfortunately is extremely high in Ukraine.