Leading experts, Paul Johnson and Nobel laureate Sir Angus Deaton, discuss the findings of their major study on inequality. They explore the impact of the pandemic, stagnant wages, declining life expectancy, and the unequal distribution of economic growth. The podcast also explores the interventions made by the state to address inequality, the challenges of taxing wealth effectively, resistance to change in the UK political system, and government actions to reduce inequality.
Growing inequality is leading to financial disparities and unequal distribution of health and shorter lifespans among certain groups.
Addressing inequality requires early intervention, support for families and education, fair taxation, and preventing concentrated wealth.
Deep dives
Growing inequality and its impact on society
The podcast explores the growing inequality within society, with a small group at the top benefiting greatly while the majority face shrinking incomes. This inequality is not only reflected in financial disparities but also in the unequal distribution of health and shorter average lifespans among certain groups. It highlights that the pattern of each generation gaining better living standards than the previous one has eroded, particularly in the US. The divide between those with a college degree and those without in terms of wages, benefits, and life expectancy is widening, creating a social class system that is concerning and intolerable.
Challenges in addressing inequality
The podcast acknowledges the challenges in addressing inequality, particularly in the UK. It mentions generational poverty, regional disparities, and the difficulty of consistent policymaking to make a significant difference. Political resistance, such as public opinion against inheritance tax, hinders comprehensive solutions. The podcast argues for the need to prevent the growth of a divided society, where one group feels excluded while another thrives financially. It highlights the importance of early intervention and support for families and education to reduce socioeconomic gaps and promote equality in the long run.
Wealth inequality and taxation
The podcast delves into the issues of wealth inequality and the challenges in taxing accumulated wealth. It mentions the significant increase in wealth during the pandemic, particularly in the stock market and housing markets. The concentration of wealth among the wealthy highlights the need for fair taxation, including potential temporary levies and capital or wealth taxes. The podcast also discusses the interplay between income and wealth and the need to address the regressive nature of the current tax system. It emphasizes the importance of preventing a society where only a few benefit greatly while the majority struggle financially.
Probing the results of a major study into our unequal society. Faisal Islam, BBC Economics Editor, talks to two leading experts on inequality, who have together been working for several years on a research project for the Institute for Fiscal Studies. He asks Paul Johnson, IFS Director, and Nobel laureate Sir Angus Deaton what the findings reveal about the UK now, and how these issues can be addressed.
Producer: Xavier Zapata
Production Coordinators: Maria Ogundele and Jacqui Johnson
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode