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Posts Tagged ‘inequality’

Being Poor and Being Powerless

Monday, June 14th, 2010

Henry Tam Henry Tam is Visiting Professor at Birkbeck College, University of London. He has written extensively on the subject of democratic citizenship, and actively championed the development of inclusive communities. In this guest blog post he outlines the analysis from his recent book Against Power Inequalities.

If in the land of the blind, the one-eye man is king, then in the realm of trillionaires, even those with merely a millionaire status would languish at the bottom of the heap. Power – visual power, purchasing power, military power – whatever form it takes, is inherently relative. It makes no sense to talk about someone being powerful or not without making a comparison with someone else’s ability to make things happen. And since poverty is in essence about the lack of power, we should never lose sight of the need to combat it by limiting the concentration of power in those who can already pretty much do what they want.

Yet, it is not an uncommon suggestion that people should not worry about what others have got. Perhaps the visibly wretched should be given clothes, shelter and food. But beyond that, we are often told; people should look after their own needs and leave others to get on with their lives. Where they have a common interest in cooperating, they can voluntarily do so; otherwise just let people mind their own business. This sanguine outlook has one critical flaw. It ignores what entrepreneurs have tirelessly demanded as the level playing field, or diplomats have for centuries sought as the balance of power – in short, a power structure where no one has a predominant capacity to subdue, intimidate, marginalise, or take unfair advantage over others.

If we really care about helping the poor, the powerless, all those who are vulnerable to the whims and commands of others, then we need to make sure they can stand up to the powerful. In my new book, Against Power Inequalities, I look back on history and find that over centuries, across the world, a similar pattern emerges with those in powerful positions seeking to strengthen their grip even further by constantly changing the rules in their favour, and progress in making communities more inclusive only achieved when reformists and citizens have managed to redistribute power more fairly. Along the way, there are of course many twists and turns. Some claim to fight for the powerless and end up just grabbing power for themselves. Others express deep concern for the poor while they consolidate economic arrangements which will continue to benefit the rich at the expense of everyone else. But sustained change for the better is possible.

We are not talking about some utopian end point, but a constant effort to moderate excesses. The civil service has now been told that its highest earners should not be earning 20 times or more than the lowest. The same message needs to be repeated for society at large – at present, the top 10% in the UK have 100 times more wealth than the bottom 10%. At the global level, the challenge is even more severe. The richest 1% of adults own 40% of the world’s assets, while the bottom 50% barely own 1% of the world’s wealth.

To adapt the homily about not just giving a hungry man a fish, but teaching him the art of fishing, there is no point in teaching him how to fish if he is unable to stop the multinational fleet of trawlers taking away the entire fish stock.

Henry Tam’s new book, Against Power Inequalities, provides a short guide to the contest for power redistribution across the centuries, and draws out the underlying causes of disempowerment which are still with us today.  It is available for  free download from the Equality Trust, or from Henry Tam’s own blog Question the Powerful.

The Fairness Test – will leaders sign up to an equality impact assessment?

Monday, April 26th, 2010

Community Links has joined a group of other charities today in calling for the main party leaders to commit to a Fairness Test, to ensure the poorest in society do not shoulder the burden of reducing our national debt.

The test, which is supported by organisations including the Child Poverty Action Group, Barnardo’s, Save the Children, and the Equality Trust, would ensure that major tax or spending changes are rigorously assessed for their impact on inequality. Carried out by the Treasury, the Inequality Impact Assessment would mean that governments cannot make major changes without being aware of the consequences for inequality and the knock-on effects on the cohesiveness and wellbeing of the whole society.

At Community Links we are all to aware that even small cuts in seemingly-small budgets can have dramatic effects. For example, we provide welfare and benefits advice to over 12,000 people every year – a vital service that last year ensured they received an extra £1.3m they were entitled to. Cuts to services like these might go unnoticed next to much larger spending decisions, but would be devastating to the people we work with. An inequality impact assessment would help safeguard vital services like these.

Reality Bites – TV’s Poverty Game Shows

Friday, January 29th, 2010

Coincidentally, while we have been debating representation of poverty in the media on the blog this week, staff from a TV production company turned up unannounced at our building in Canning Town yesterday seeking “poor people” for a new series of a reality TV programme. Whilst people are waiting to see advisers about their debts and benefits, or picking up youngsters from after-school clubs, researchers handed round flyers asking if people were “struggling to make ends meet” – and inviting them to participate in a reality TV show. It’s not the first time we have been approached to put people up for this type of “Poverty Game Show”.

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We must look beyond the stigmatising language

Thursday, January 28th, 2010

George Selmer works in business development for a Welfare to Work provider, supporting people back into jobs.

This morning, the Daily Express leads with a story on ‘benefit cheats’.  In truth, the taxpayers’ money they ’scooped’ was the result of errors by DWP staff that led to overpayment of benefits. The tone of amazement that one ‘benefits cheat’ has recently been given ‘100 years to repay £70,000 at £14 a week’ fails to mention that £14 probably represents a substantial percentage of that individual’s weekly allowance – on which they’d already struggle to make ends meet. The article speaks in the voice of the aggrieved and angry ‘hard-working taxpayer’. It has no interest in the lives behind the phrase ‘benefits cheat’ – their individual circumstances, hopes and dreams, or the weight of geography, history, culture and economics that has put them where they are.

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Beyond us and them – the parallel universe of poverty

Thursday, January 28th, 2010

Julian Dobson is Editorial Director of New Start magazine, and this post is reproduced with kind permission from his blog

If a picture is worth a thousand words, a good graphic can sometimes do the job of an entire book. This week the Guardian illustrated the National Equality Panel’s report on inequality within the UK with a double-page spread of graphic delight: elegant, colourful and informative.

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Does equality matter? New Tory think tank Bright Blue dives into the fairness debate

Wednesday, January 13th, 2010

Equality has been a thorny issue for both Labour and Conservatives. Tony Blair famously said he was ‘relaxed’ about people being fabulously wealthy when challenged on Newsnight about the ever widening gap between rich and poor under Labour. His view was in keeping with the approach of the Conservative party which has traditionally put its faith in ‘trickle down’ economics, and was also criticised for increasing the gap between rich and poor when in power.

So it was bold of Bright Blue, a new Tory think tank, to face the issue of fairness head on in their first debate entitled Does Equality Matter last night at Westminster (Jonty Oliff-Cooper, co-founder of Bright Blue, explains their position above).

Shadow Work and Pensions minister Theresa May, and left of centre commentator Polly Toynbee, the two speakers, both agreed that equality mattered, but disagreed about the importance of income as a key measure of equality. Both focused their comments on policies needed to help those on average or low incomes improve their situation, saying relatively little – and in May’s case nothing – about what to do about reducing the share of wealth that goes to the very rich.

Theresa May argued that income was only one factor in a complex matrix of problems that stopped people fulfilling their potential. She talked a lot about family breakdown, drug addiction, cycles of long term worklessness and other apparently non-income related factors that contributed to poverty, following the line Cameron had adopted the day before in his speech at DEMOS, to the annoyance of some. She insisted there was no one solution to reducing levels of inequality and said what was needed was flexibility and bespoke policies that met the needs of individuals.  She gave the example of autistic young people who have special needs for help into work that could never be met by an off the shelf approach. The voluntary and private sector would be called on to meet many of these needs.

Interestingly, May did not challenge the notion that inequality needed to be reduced or that more equal societies are happier and more successful, although she did not develop these points with any great enthusiasm.

Polly Toynbee, on the other hand, enthused about The Spirit Level, a recently published book by academics Richard Wilkinson and Kate Pickett, which shows that on a whole range of measure from health to teenage pregnancy and crime, the more equal a society is, the more successful it is. It was not so much how much money people had that mattered, she said, but the relative gap between the richest and poorest. A key issue was status, how people see themselves in relation to others. Where there are big gaps between rich and poor, those towards the bottom of the social hierarchy feel a lack of status, resulting in depression, crime and anti-social behaviour.

The obsession amongst some disenfranchised young people in the UK with ‘respect’ and their willingness to commit acts of violence to gain ‘respect’ was evidence, she claimed, that these status issues had a big impact on the happiness or otherwise of a society.

Toynbee said redistributive tax policies were needed to reduce the gap between rich and poor and praised tax credits as an effective redistributive measure. May said nothing about redistribution and did not stay long enough to be asked about the issue.

Questions from the audience focused on detailed policy issues such as where to focus priorities in allocating resources to the Sure Start programme, and how local authorities can work with central government.

One questioner asked whether cuts needed to bring down the budget deficit would be an opportunity or a threat to the next government. Toynbee said it would be an opportunity for the Conservatives to cut back on state provision. Teresa May dodged the question somewhat by saying it would be a challenge, but said it would be an opportunity to spend money better and acknowledged that cutting without increasing inequality would not be easy. When challenged on the Conservative’s record on tackling inequality under Thatcher, she said the gini coefficient (a measure of inequality) was higher now than it has ever been.

Anyone hoping to map future Tory policy on equality issues needed to read between the lines. But the focus by Theresa May on individual and family issues as the key factors in inequality, and the absence of any mention by her of redistribution or greater regulation to crack down on mega pay levels in both either the private or public sectors, suggests the new Tory approach to inequality may not be so different from the old one.

When we eventually come out of recession, will the Tories, if they are in power, allow the gap between rich and poor to grow even wider? Will they continue with the laissez-faire economics of both previous Labour and Conservative governments which have allowed the city to let rip and top earners to increase their pay to levels which would have been unimaginable just two decades ago?

That might be a good subject for the next Bright Blue debate.

Low pay in London

Friday, September 5th, 2008

GLAEconomics Report CoverThe Greater London Assembly’s economics unit report no.22: Patterns of low pay in London’  highlights (yet again) the numbers of people and the conditions that keep many in poverty.

Between 15-19% of London’s workforce is low paid (earning less than £7.05 an hour), that’s between 481,000 and 609,267 working poor. Low pay more frequently affects employees who are less well-qualified, young, and and from black and minority ethnic communities.

As our Informal Economy work has shown, work should not keep people in poverty, but help to raise them out of it.  More of a focus by employers and the government (even in this difficult economic time) should be aimed at ‘making work pay’. A popular slogan bandied about that the DWP in its green paper ‘No one written off’ should consider further. 

The other consideration to reduce these levels of low pay is that of enforcement, particularly of the National Minimum Wage, however current levels of enforcement are comparable to the Dickensian era.

Of particular note in the GLA report is the figure that 199,400 (7.2%) of London’s workforce are earning less than £5.05, with most of them young people. Why is there a difference in the rate of the NMW for people over a certain age? Our report ‘Cash-in-hand and working rights for young people’  (see previous blog entry) made the recommendation that the NMW should be the same regardless of age. This would help to reduce wage inequality and help to progress more people in the labour market currently in low pay.

The geography of life expectancy

Thursday, September 4th, 2008

I was reminded recently of the London Health Observatory statistic that for every tube stop on the Jubilee line going east, from Westminster to Canning Town, life expectancy decreases by one year.

A more shocking report from the World Health Organisation last week claimed that life expectancy in two different neighbourhoods of Glasgow (a 10 minute drive from each other) vary by as much as 28 years.

The main factor for this huge disparity is poverty. Staggeringly the gap between the rich and the poor has continued to grow over the last 10 years under a Labour government.

Poverty has a life time impact on the children and young people who grow up experienceing it.  Child poverty in the UK is unacceptable. We are the fourth largest economy in the world, a powerhouse for the world’s financial markets, a rich and prosperous country, and yet:

  • 3.9 million children are living below the poverty line in Britain 
  • 1 in 4 children in London live in poverty 
  • 54% of children in the London borough of Newham, where we work, live in poverty

We recently published some research into poverty in our area  commissioned by the local authority and in October linksUK’s ‘Social Change Series’ will focus on child poverty- so watch this blog… or subscribe to get regular updates by email.