Income inequality ‘fundamentally flawed’ as policy tool (UK)

EXECUTIVE SUMMARY – Extract

This study argues that, for those of us who care about the welfare of the poorest and the most vulnerable, income inequality is not a useful measure. Measures of income inequality tell us nothing about the living conditions of the poor, their health and their access to economic opportunity. Income inequality can easily increase in societies in which everyone, including the very poorest individuals, is becoming better off. Conversely, a reduction in inequality can be associated with deterioration in the living conditions of the less well-off members of the society.

SOURCE: Dalibor Rohac, Does Inequality Matter?, Adam Smith Institute

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