Tag Archives: inequality

Unearned wealth and unmerited suffering: Mini review of 2023

Homeowners are locked into dramatically escalating mortgage payments, and rented property is tipped into lucrative Airbnb short lets. There is real social pain behind macro-economic headlines, genuine suffering among those paying rent, struggling in work or in positions of disability. Yet such a troubling scene need not impinge on the expanded ranks of the super affluent. While the majority of people face challenges to their daily living, life for the wealthy may seem more like a kind of luxury advent calendar – each day bringing a new surprise whether it be the shower of unearned cash, the vehicle of offshore wealth innovations or the shiny baubles of the prospect of reducing inheritance tax (as well as the abandonment of a wealth tax by the political left).

The keyword in this toxic, hyper-divided social context is denial, the goal? To build a world that makes it easy to forget the desperation and chaos. This includes a new round of 5-star hotel openings in London, a record-breaking year for sales of homes worth more than £5m and a record year in prospect for super yacht builders. Yet who can morally lay claim to enough fuel to send a personal rocket to space, the use of a mega yacht to amble the Mediterranean, or possession of a string of residences that require unending private jet travel to access them? It may not be long before secretly sponsored piracy is used to challenge these excesses.

The toxicity of inequality today is now played-out in national politics as a series of diversions or refusals that persist until there is no way out from the truth. Something deeper and more destabilising appears to be at work as the parameters of political life, the fog of social media and the sharp work of legal teams fuels an industry of obfuscation working to deny the extent of tax evasion, to defend tax avoidance, to suggest that economic crime is somehow appalling but cannot be challenged. Grand lies, like the idea that the rich will go elsewhere if tax rates rise, are perpetuated most often by those working for them. Underlying this labour to defend inequality and corruption is a deep malaise in social life, while public fatalism has become widespread as a result of its endemic nature. As one elite after another tumbles in public esteem the idea of a common future and work to prepare for it by a more or less cohesive society is undermined at a time when it is most needed.

One of the best antidotes to denial is the dogged pursuit of tax justice – seeking fair contribution from across a, usually nationally defined, community. This may sound somewhat abstract but we must remember that tax receipts (or their absence) determine whether people are able to access core health, education and other public services. This year the Tax Justice Network wrote on this issue to King Charles asking that he set the tone for debates on fair taxation which would ultimately mean the difference between a well-staffed NHS or the parlous state it is currently in. Meanwhile it seems that the British government cares little about fairness or tax avoidance and finds only weasel words to avoid anything approaching action. The idea of the state itself has been so far denigrated by those who lead and manage it that it is no surprise that those with considerable money would prefer to put their money elsewhere. Why give money to a system that offers further tax breaks to the rich while presiding over the collapse of social conditions? But even here things are more complex, with ‘patriotic millionaires’ clamouring to step up and help out.

Naming the system and its functionaries for what they are is critical. But the political right are on to this, proclaiming communist plots for public wifi or social housing, or of a deep state run by leftist elites. It is hard to swallow this kind of provocative analysis at the best of times. But it is again a form of intentional fogging of the lenses we need to see with clarity the kind of country we have become – a country that sees the premature deaths of tenants, stress and anxiety locked into the housing pathways of millions, lack of action on affordable housing and the callous shadow play of immigration policy. A government formed of the rich and those connected to property interests continues to throw favours at those that don’t need them while those desperately trying to stay afloat are left to drown. We will see what 2024 brings, but it would seem naïve to think that things can only get better.

Thinking the pro-social

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Social researchers spend so much time considering problems of inequality, crime, poverty, ill-health and related questions that they rarely have time to pause and consider more utopian, counter-factual ideas, to step outside the ‘realities’ and constraints of needing to be policy relevant or palatable for other audiences. Many of us act in ways that are self-disciplining, if not self-defeating – we make careful pre-judgements about who will listen and this often prevents us from making proposals or running ideas that might make the world a, dare we say it, better place. This has long been the case but in the context of contemporary forms of unparalleled inequality, ecological crisis and economic instabilities the role and perhaps duty of social researchers is to draw on their evidence and intervene effectively in helping social conversations about these issues. It doesn’t strike me as a terribly partisan comment to suggest that the UK coalition government and its new round of proposed cuts is inherently anti-social (not least because the mainstream alternative/s offer much of the same). Indeed it has managed to triumph in promoting a worldview that suggests precisely any other argument around taxation, spending and investment is either loopy or some kind of powerful ultra-leftist viewpoint that would endanger civilization as we know it.

Today’s economic, political and social environment undermines everyday social life as notions of the shared, the public, the municipal and common space have been fundamentally challenged. The global financial crisis has ended-up granting energy and fresh confidence to narratives that legitimise cuts to the funding of public services, disinvestments in diversionary and creative programmes for vulnerable groups and fresh rounds of public asset stripping. The apparent logic of such attacks is that we cannot afford, do not need and should not pay for arrangements, institutions and provisions that are shared or collectively provided. Yet social investigation now tells us, through convincing and in-depth investigations (like that of Pickett, Wilkinson, Sassen, Piketty and Dorling) that gross inequalities, absences of social insurance and expulsions from citizenship and common provision generate expanding forms of hardship and social problems.

It appears increasingly evident that the kinds of social distress, climate change and other modern evils cannot be contained in convenient or cost-free ways to the wider population. We appear to be seeing the ‘escape’ of social problems from traditionally vulnerable spaces and populations to include those who have more often been able to avoid such problems has led to renewed efforts by the affluent to insulate themselves from these risks (I wrote about this sometime ago as a ‘cut’ in which the affluent are now able to insulate themselves from the costs of inequality that has diminished arguments for promoting greater equality or progressive taxation).

We now find that a number of problems (insecurity, fear, ill-health, violence, education and reducing social mobility) are being exacerbated by new rounds of value extraction from the public realm in the name of increasing efficiencies and economic growth. New forms of anxiety, hardship and concealed exclusion appear to mark this situation, with mounting concern about the long-term consequences of dismantling a variety of forms of common provision and mechanisms that might guard against extreme wealth and income inequalities (notably the NHS but also systems such as water). One critical basis for arguing against this ongoing disaster is to suggest that we are more capable and happy as private, free citizens when freed against the excesses and intrusion of such a dominant corporate-political sphere of influence. In other words, strong forms of municipal provision, affordable health, education, meaningful and financially rewarding work lead not only to some mad vision of a more equal society – they offer deeper and substantial rewards in the form of personal emancipation, freedom and self-realisation than in societies marked by declining public investments and provision. In such contexts what we find is not only troubling forms of social damage and loss (to say nothing of the revolting levels of excessive wealth and consumption by the affluent amidst poverty) but also diminished forms of self, community that ride alongside the vision of a minimal state and corporate capture of assets and profits.

With social and policy thinking often fixed on notions of the anti-social it appears timely to consider the value and limits of the social itself, of the kinds of mechanisms for community participation and self-realisation amidst these powerful social and economic forces. The position of the academy in relation to these debates and to questions of social resilience, emancipation, social justice, the nature of collectivity and forms of social sustenance and protection are also raised by this context. The real lie amidst all of this is that there are sides to choose from when the systemic logic of markets that pervades and dictates so many areas of social life is antagonistic to almost all visions of a sustainable, enjoyable, healthy life for all.

The random neighbourhood: Bringing concentrated wealth into the concentrated poverty debate

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rich and poor 2

The unfair distribution of wealth and income today are increasingly at the forefront of social debate. These arguments appear to be rising in intensity, largely because new media systems have made allowed data and insights to circulate more quickly and clearly. It is likely that you have heard that roughly 80 people own half of the entire globe’s wealth, and similar figures that highlight these massive disparities. But it is also important to think spatially in relation to these questions. London has become a kind of gilded ghetto, a series of positive area effects in which wealth brings more wealth and the agglomeration of unparalleled cultural and financial infrastructures drives further investment. Being wealthy in London allows access to these services and shows how space matters and its attributes drive the residential decisions of the wealthy. This is, of course, in some contrast to the conditions of many neighbourhoods and more deprived households whose position has been further distressed, not only by austerity but the almost wholesale exit of public strategies to address market failure, social and regional disparities. Where the neighbourhood was central to policy interventions it is now side-lined amidst a race to further concentrate capital investment in London and among other existing winners.

There is a palpable anger about inequality that is being channelled and given weight by the cumulative evidence of meticulous analyses. Piketty’s book on Capital in the 21st Century and Dorling’s Inequality and the 1% are good source books with which to face-down dominant ideas that circulate in political and media circuits used to justify why government debt cannot be allowed to escalate, why more equitable taxation as a means to address deficits cannot be used to resolve current conditions and how large the yawning gulf is between the majority of the population and its well-paid and wealthy elites really is. This has made these issues new-found targets that are fair game for debate and criticism.

Let’s go back to the question of how to understand these issues in spatial terms. How do places pull us back or help us to move forward? These are long-standing concerns that underpin urban policies designed to iron-out the worst wrinkles in the uneven social patchwork of market failure and social distress – tackling uneven economic opportunities and social outcomes. In all of this the idea of the neighbourhood effect, of the compounding disadvantages that people face when living side-by-side with many other people with few or no resources, was a powerful theory. Of course in such conditions it isn’t the neighbourhood itself that magically acts to hold people back, but a range of social and economic effects generated by, for example large numbers of unruly kids in a classroom, the lack of role models in the neighbourhood, the increased risk of victimisation from acquisitive criminals and so on. These ideas are not without their controversies, many have left ideas of an underclass and of concentrated poverty because of their relation to paternalistic policies and indeed regressive explanations of those problems.

Areas of concentrated deprivation are produced by at least two key factors – first, a population of households and individuals generated by the economic system we inhabit (so obvious yet so very important!) and second by the nature of public and private housing systems that sort people into estates and neighbourhoods with bundles of more or less desirable qualities and proximity to essential services, amenities and employment opportunities. One way of thinking about the impact of this social mosaic is to consider a thought experiment. Imagine twins who, at birth and incredibly cruelly, were separated and moved to the most affluent and deprived neighbourhoods in the country. What experiences, challenges and advantages do you think they would each face as a result of developing in these different contexts? Such an experiment goes some way to forcing us to think about how we might plan to tackle general levels of deprivation, but also think through how to encourage more socially diverse areas.

One possible way to imagine a template for neighbourhood planning would be to randomly allocate people to all local areas in the country. This interesting thought experiment forms the basis of an article by Danny Dorling and Phil Rees. Yet it isn’t a million miles away from the ambitions of planners to create socially diverse localities by engineering variables like housing tenure, building size and type and so on. The idea of a random neighbourhood that thereby draws in a good cross-section of people with varying incomes, class, gender, sexuality, occupations and ages can be used to think through the benefits of social mix and diversity – how they might be optimised to generate greater inclusion, lower reliance on services and a broader social base of daily contact. This image stands in contrast to the kinds of areas of concentrated deprivation and exclusion that we see in many towns and cities. This isn’t just about the lumpy areas of concentrated exclusion but also necessarily about the nature of concentrated wealth and its obliviousness to social distress.

Visions of what an optimal neighbourhood might be have arguably been stunted by the absence of interest in neighbourhoods by the current government, and no doubt the continued de-funding of policies that have been shown to make a difference at this level in the pursuit of deficit reductions. We don’t have neighbourhood policies, local programmes, forms of social investment and catalysts to mitigate against the way that capitalism will always tend to produce big winners and losers. Without recognition of the need to make concessions the kind of anger expressed at housing shortages (among many other areas of social need) are likely to become much more concerted, aggressive and generate wider appeal. Perhaps more importantly we need to look to and understand how the places and virtues of concentrated affluence and economic growth in the south-east shape the policy ambitions of our political elite. Their disconnection (from the lived reality of poor living environments, denuded public services) takes away any urgency to providing vehicles for mass employment in the post-Fordist heartlands. For those arguing that to improve our chances we should somehow get on our bikes and join the glittering economic heartlands of the south-east we need to recognise not only the segregation and distress of the capital itself but also how very broken and over-stressed that system is already. We need more imagination around local and regional planning as well taxes on wealth and income to even begin to start to redress these unacceptable gaps between rich and poor.