INEQUALITY IS IMPACTING OUR POLITICS AND OUR LIFESPANS
by David Coats Income inequality as an economic problem is of course firmly back on the political agenda. When Christine Lagarde, managing director of the International Monetary Fund, identifies the growing gap between rich and poor as a problem then it is clear the terms of the debate have changed. It seems even the IMF have finally woken up to the fact that large disparities create unstable societies. If the poor and the rich live separate, parallel lives what stake do the poor have in an economic system that keeps them in poverty? One might read this as a recognition that the crunch of peasants’ feet on the aristocrats’ gravel drive is an increasingly likely prospect if the status quo continues. Self-preservation is a powerful motivator for a change of elite minds. However the IMF have advanced a more cautious, technocratic case – at least initially. They warn that rising and excessive income inequality is a source of economic instability, not because it sows the seeds of revolutio...