Touchstone Extra: Fairness and Prosperity
The UK is a far more unequal society now than it was 30 years ago, and three-quarters of the public agree that the gap between rich and poor in the UK is too high. But if policymakers were to enact policies to reduce inequality, would this jeopardise the UK’s economic performance?
Today’s new Touchstone Extras pamphlet, written by Howard Reed, reviews the latest evidence on the relationship between inequality and economic performance across countries and finds no support for the idea that there is a ‘trade-off’ between inequality and prosperity. Indeed, there is strong evidence that countries with higher inequality have worse performance on a range of health and social outcomes.
The report also discusses theories that can rationalise these findings, and recommends policies which would help reduce inequality from its current very high level in the UK.