I thought I would share this image as it was the first to really draw my attention to income inequality and the massive wealth disparities in the UK. The image above taken from an article by The Atlantic represents a famous picture of income inequality construed by the Dutch economist Jan Pen. Using data from the UK in 1971, he asked us to visualize a parade of people which would take one hour to pass, however this parade would have two intriguing features. Firstly the people involved would be arranged by their levels of income – the poorest at the front leading to the richest at the back. Secondly the heights of the people in this parade would be directly proportional to what they earn. Pen asserted that the following parade would look rather peculiar. Instead of a steady progression of people with increasing heights during parade, we would observe mostly a continuous line of dwarfs and then unimaginably tall giants at the very end.
The unfortunate part about this story is that since Pen came up with this image the number of dwarfs has increased, whilst the giants have become even larger. Since the data he compiled in 1971, the UK’s level of income inequality has risen considerably. The UK’s gini coefficient, which takes a value between 0 (perfect equality) and 1 (perfect inequality), sat at 0.26 in 1979 whilst the last estimate in 2005 put the score at 0.34 (Data from UNWIDER). When the next inequality figures come out the gini coefficient is surely set to rise whilst the some early reports have suggested that income inequality is now at its highest since the 1930s. Substantial cuts to welfare, rising inflation and tax breaks for the top earners will all further add to this problem and ultimately lead to negative effects both socially and economically.