SC Connecticut News

The recent census data reveals that 36.8 million Americans, which is over 11 percent of the population, live in poverty. Globally, nearly half of the world's population falls below the poverty line for middle-income countries, with 8.5 percent living below the extreme poverty line for low-income nations.

Inequality has increased significantly over recent decades. From 1979 to 2020, incomes for the wealthiest .01 percent of U.S. households grew at a rate 17 times faster than those in the bottom 20 percent. In 2021, according to the Congressional Budget Office, the richest 1% earned almost 139 times more than the bottom 20%. The Federal Reserve reports that two-thirds of America's wealth is held by the top 10% of households, while the bottom 10% possess just 2.5%.

Anne Phillips, emeritus professor at London School of Economics’ Department of Government, commented on this issue: “Poverty is not new,” she said. “Inequality is not new. These are clearly things we should worry about. But should we worry more about poverty or inequality?”

Phillips delivered these remarks during a lecture at Yale's Institution for Social and Policy Studies (ISPS), as part of a series honoring Robert H. Litowitz.

“We are tremendously grateful for the opportunity to host these lectures as a fruit of Robert Litowitz’s vision and generous spirit,” said Ana De La O, EP&E director and ISPS faculty fellow.

Phillips referenced American philosopher Harry Frankfurt who suggested that focusing on others' wealth can lead to envy rather than addressing real issues.

She also mentioned Shekhar Aiyar's work highlighting how India and China have lifted over a billion people out of poverty: “From a global perspective, the dominant public discourse about liberalism’s malign impact on economic inequality is alarmingly blinkered,” Aiyar noted.

Despite acknowledging improvements in absolute poverty levels globally, Phillips argued that rising economic inequality within countries still demands attention: “Focusing only on poverty encourages the delusion...that we already do have — and had for decades and centuries — equality in our fundamental status,” she stated.

Phillips emphasized that inequality extends beyond income or wealth disparities to power dynamics: “Inequality is a social relation...what they have gives them power over others.”

She warned against ignoring material inequality's threat to democratic societies and advocated engaging people as change agents to address both poverty and inequality comprehensively.

Her book "Unconditioned Equals" explores why equality must extend universally without relying on shared views of human nature.

“Giving up on challenges of inequality is a dangerous move,” Phillips concluded.