Panel on Income Inequality

Income inequality turns out to be much more important than aggregate national income (above a certain poverty level) in all of these:

• National aggregate levels of happiness (measured in a variety of different ways)
• Levels of physical and mental health (cancer, heart disease, anxiety, depression)
• Levels of child wellbeing (aggregate measure of learning, happiness, health, safety)
• Levels of community trust (we trust people equal to ourselves.  But not people poorer (blue collar crime) or richer (white collar crime)
• Quality of social relations (we get along better/stronger friendships with people of similar socio-economic status – moreso than of similar age, race, gender.  Unequal societies also have higher rates of divorce).
• Economic growth (inequality seems to cause more bubbles and crashes)

In each case, you are better off being equal than being rich.

It’s not about poverty.  In the unequal countries, the rich have lower levels of health, happiness, and social relations, not just the poor.