This document summarizes debates about the theory that greater income inequality is harmful. It discusses a hypothesis by Wilkinson and Pickett that more equal societies have better outcomes for most people. The document outlines debates in Britain, the US, and Sweden challenging this theory. It then presents results from analyzing the relationship between income inequality and various welfare outcomes using data from 127 countries, finding some support but also some inconsistencies with the inequality hypothesis.

1. Focus on Social Sustainability: is income
inequality harmful?

3. Positing a Grand Theory: everything is better
in more equal societies (known as inequality
hypothesis or Wilkinson hypothesis)
More equality is not only better for the poor
but to almost everyone barring the filthy rich

8. Debate in Great Britain: John Goldthorpe, Chris
Snowdon (The Spirit Level Delusion: Fact-Checking the
Left's New Theory of Everything, 2010), Peter Saunders
(Beware False Prophets: Equality, the Good Society and The
Spirit Level, 2010)
Debate in the US: Lane Kenworthy
Debate in Sweden: Sanandaji et al (Taxpayer
Association, Jämlikhetsbluffen [Equality
hoax])

9. ”The Spirit Level has little claim to
validity. Its evidence is weak, the
analysis is superficial and the theory is
unsupported.”

10. Evaluate W&P’s theory on income equality and welfare
outcomes
Replicate W&P’s and Saunders’ analysis with their
country selection and with our country selection (127
countries)
-> Boxing match in eight rounds

11. HIV LifeEx Inf Mort Homis Suic Divorce Alchol Fertility
GINI 7.40*** -4.15*** 5.54*** 6.71*** -5.28*** ns 2.10* ns
GDP/C ns 7.22*** -15.03*** -4.59*** ns 3.67*** 5.23*** -8.44
Africa 6.41*** -6.19*** 3.32*** -2.18* 2.50* ns ns 3.91***
Islam ns ns ns ns -2.89** ns -4.79*** ns
Catol ns ns ns ns ns -2.07* ns ns
East-E ns -3.89 2.42* ns ns ns 3.91*** -8.21
Alcohol ns ns ns ns ns 3.17** - ns
R² .57 .81 .88 .45 .89 .58 .52 .83
N of contr126 127 126 124 79 70 123 127

12. W&P Saunders
HIV Ƴ
LifeEx Ƴ
Infant Mortal Ƴ
Homicides
Suicides Ƴ
Divorce Ƴ
Alchol
Fertility
INEQUALITY IS HARMFUL