John Rentoul is outraged that the BBC have chosen to cover the publication of the government’s new report on equality with the headline “Rich-poor divide ‘wider than 40 years ago’.” He is of course correct to point out that the main increase in inequality over the past 40 years took place during the Thatcher years.
But the Harriet Harman approved wording that he picks out of the report’s executive summary is equally misleading:
The large inequality growth between the late 1970s and early 1990s has not been reversed.
It certainly hasn’t been reversed, but that suggests that it has at leasted been reversing. The reality is somewhat different.
I would refer you, dear reader, to page 9 of the report which has a handy graph showing both the Gini coefficient and the 90/10 factor from 1961 to 2007. What this graph shows is that both measures of inequality peaked in 1991, dropped a bit as we came out of recession and then hovered around the same level in the years following. Indeed, while the 90/10 scale shows a slight dip in inequality since 1991 (to 1989’s levels), the Gini coefficient was at an all time high in 2007.
Since 2007 of course, we have had a major recession. Inequality spiked in 1991 for this reason and so we have every reason to believe it will have spiked again between 2007 and 2010. It is quite possible that both scales will exceed the 1991 levels.
So not only have Labour failed to reverse Thatcher’s increase in inequality, they’ve failed to make any impact on it at all.
The BBC should indeed change their headline. I would suggest that it reads “Rich-poor divide ‘wider than 1997′”. John Rentoul won’t like it but it would accurately reflect the real failings of this Labour government.