Pardon me for ignoring the Cabinet reshuffle. It’s just a few new ambitious faces replacing a few tired personalities. Some minor hoo-ha over Mukhriz edging past Khairy into the Cabinet. There’s even a Green Technology Minister – and perhaps with this ‘green’ theme in mind a discarded state chief minister has been recycled into a cabinet minister.
But in the larger scheme of things, the basic economic orientation of the country remains the same.
Over the last few years, we have seen a drastic rise in social ills – crime, drug addiction, depression…you name it.
What is behind all this? One possible reason is the alienation of the human being/workers as a result of the industrialisation process. Another possibility is the disillusionment and discontentment fuelled by relative poverty and marginalisation under the “trickle-down” economic approach.
Then comes a newbook, The Spirit Level, revealing that countries with greater income inequalities experience a lot more social sicknesses. This doesn’t only affect the poor in these unequal countries but also the more affluent, who suffer from stress and a fear of the poor. (Think of how more and more of the rich and wealthy are retreating behind gated communities or guarded condominium complexes or installing burglar alarms). The poor on the other hand suffer from uncertainty over how to make ends meet and a sense of anxiety over their low social status.
Download an audio lecture by the authors here (mp3 format).
Such inequalities did not happen by accident. They are the direct result of pro-rich economic policies. In the UK, for instance, much of this inequality arose as a result of neo-liberal policies (privatisation, cuts in social spending, policies that favour the rich) during the Thatcher years and which have continued under New Labour.
Now look where Malaysia, which has one of the most unequal societies in this region, stands. Mahathir copied some of these same privatisation policies while emphasising heavy industrialisation.
In 2004, our own top fifth to bottom two-fifths ratio stood at 7.6. (Rogayah bt Hj Mat Zin, Income Inequality in Malaysia, in Asian Economic Policy Review, 3, 2008).
From this, we can conclude that our top fifth to bottom fifth ratio is more like 10. Have a look at the chart here (pdf format) and see where we would stand.
Hi Anil
Professor Richard G. Wilkinson argues that
more unequal societies (societies with greater income inequality)
experience (1) greater health differentials between the social classes as well as (2) poorer quality of social relations e.g.
his book “The Impact of Inequality: How to Make
Sick Societies Healthier”.
Note: it must also be said that his first assertion is disputed.
Complain about this comment
Like or Dislike:
0 
0
Yes, all these petty thefts have a close relationship to the earning power. It’s still a class struggle at the end of the day – a struggle to make ends meet eclipsed by the agenda of the govt to bail out crony companies. The economic policy practised from Washington all the way to the East has failed the global citizens. Income disparity is a huge problem.
Complain about this comment
Like or Dislike:
0 
0
The problem is not disparity of income but more of our income has stayed stagnant through the years. Household debt to income is high compared to other Asian countries….why? not because Msians overleveraged but because income never grew over the years. Hence, our standard of living has fallen. I am not talking about tycoons, certain politicians or bangsar residents here but ever wondered why families are finding harder and harder to buy their first house? The economy is over protected and needs to be freed up although free market is a bad word now. Socialism is not the answer, it is the cause.
Complain about this comment
Like or Dislike:
0 
0
Hi Anil,
Check out psychologist Barry Schwartz’s The Paradox of Choice. He finds that the common belief that more choice is inherently good is false. He finds that we prefer to have some choice, not a vast array of it. As a result, a more equal distribution of income won’t only make poor people happier, but the rich happier too.
Here’s a talk he gave at TED (I’ve been glued to these videos lately)
http://www.ted.com/index.php/talks/barry_schwartz_on_the_paradox_of_choice.html
Han
Complain about this comment
Like or Dislike:
0 
0
[...] the original here: Why all these social ills? Look at our income inequality anilnetto-com, april-10th, christianity, economic, europe, polls, poverty, [...]
Complain about this comment
Like or Dislike:
0 
0
Using only common sense, I think you will know that all human social ills are ultimately caused by bad Government and bad society that really only worships LIES, WEALTH and STATUS as its GODS.
Thatcher’s and Reagan’s trickle down monetary economics only caused wider income and social disparities in their societies because when responsible Government and its social justice viewpoint gets out of the way of the market-based forces of the capitalist system, what really trickles down from the top to the bottom is the top’s shite.
It’s eminently logical that greedy and stupid human beings, who believe the capitalist society’s scarcity theory basis, will look after themselves and their own first, and leave others’ wellbeing to well, others as it is in theor view SEP and so a NIMBY issue.
That is the simple truth. About monetary economics and about YOU getting the Government and society and social ills you deserve, because YOU the humans in that society help create that reality.
“Imagine Power To The People” John Lennon.
Complain about this comment
Like or Dislike:
0 
0
The rich; the poor
It is abundantly clear
God wants His people to know
Love thy neighbors
To unburden the sins
He doesn’t ask much
Do what one can to help
A little help carrying a salvation
Yet we are so burdensome ourselves
Dividing line of beauty and sorrow
You can read many professional books
Telling you many technical words fooling ourselves
By right the book of religions the answer can be found
If only we open our eyes recognize the symptoms
We are home free
Nay…we are infested with wealth and glory
We have forgotten our mission in life
Get many credits to offset our sins
When we finally reached our journey
So we will read
We see the disparity of incomes
Blaming every thing but ourselves
For it is this
We must earn our credits
For the day we were born
We are stamped with SIN
Complain about this comment
Like or Dislike:
0 
0
Very interesting topic. I have been retrenched and unemployed for 3 months now & there has been so much of talk about the rescue package and helping the retrenched. I have registered everywhere, and nothing has happened about the re-training or Supplementary Bill (Mini Budget) by Najib. The home loan defermment will just put me more into debts, and let alone about buying a new house or car to take any advantage of the Tax deductions offered. As Marie Antoinette said “If they don’t have bread, let them have cakes…” I have been knocking on the doors of every other Federal Govt depts. HOw long do we have to wait before a tiny fraction of the RM50 Billion (?) stimulus package announced by Najib. I have applied for ever suitable job on Jobstreet & Print media… with ZERO SUCCESS. Wonder where have all the billions of RM have been distributed to?
Complain about this comment
Like or Dislike:
0 
0
Yes. The govt of the day should raise the minimum income level to at least RM1500 (non monetary benefits should not be included) for all Malaysians. The poverty level in the country should also be raise in tandem with the adjusted minimum wage. why should the big plantation companies make billions at the expense of the plantation workers??? why should multinationals make millions at the expense of the production workers???? If the minimum wage mechanism is set in place, many malaysians will be willing to up jobs offered by plantations and manufacturers. Eventually outflow of ringgit to foreign countries will be minimise. This will be good for the local economy as funds retained will be spent locally and the multiplier effect set in motion.
Complain about this comment
Like or Dislike:
0 
0
Dear Anil,
After all that “Cliff-hanger” & Electic 2 weeks leading to the great Bye-elections results…..
The 9th April 2009 results was an absolute “Anti-Climax”.
Senior Advisor will in time “Induce” his Incoming Macais to complete his master Plan to have one son as Dy Minister & the other as the “Businessman & SENATOR”….so APs bisa diator….
He once said that Najib will need a bank to run UMNO….yes young brother has CIMB….
Well the time has come….soon his brother Nazir (could become) a “SENATOR/Banker”….
KJ & his Deputy Azeez (could) be “WELL COMPENSATED with this Nation’s & Rayaat’s Expense” at the GLCs of “Their Choice” & be behind the scenes to appease “Taiko”.
Complain about this comment
Like or Dislike:
0 
0
I have been fascinated by the fact that this earth could be governed by the level of constant resolving spirit within her, besides physical mass. This spiritual mass could be resolving along a S curve/median within a Yin-Yen sphere. More white than black, then all white. Which will turn all black and henceforth more black than white. Along the median, we also experience equal white and black before the whole thing revolve again. It could be the current human physiology which does not permit a constant flux of spiritual energy. I read in many articles that we fear perfection because it means boredom. Sorry Anil, for my digression.
Anyway, economy is never a perfect solution to social ills because the basic fundamental of economy is ‘Gains versus Loss’. It takes someone or some countries to become poorer before you or this country can become richer. The irony now is….China is richer and US is poorer because of the same policy. In the era before we have kings and taxes, humanity was better off doing barter trading. But isn’t it because of boredom again than we demanded changes from God. Methinks, we are just too selfish to barter trade or assert equality.
Complain about this comment
Like or Dislike:
0 
0
inequality a simple term for we made the minority rich especially the politician and the minority made us poor.
Complain about this comment
Like or Dislike:
0 
0
The core of the issue is the penchant for our govt to resort to easy solutions to difficult problems. Looking at it as anti-capitalism or anti-free market is not the way to look at it. The issue really is poor protection of private rights.
There is absolutely no reason why we should have as high a migrant worker population as the US and other developed countries. Even in hawkers stalls and small businesses we use migrant workers when pro-migration Singapore don’t use them. There is no reason why the orang Asli has not been going to schools for decades and have decent income in resource rich and fast developing states like Sabah and Sarawak. There is also no reason why Indians do so well in meritocractic Singapore and yet does so poorly in Malaysia.
Capitalism and free markets does not mean no regulation and no protection for disenfranchised. In fact, it calls for greater protection of those who are defenseless by protecting their rights. Its just very hard to do and that is something our govt does not even try very hard basically because they are not very good in the first place and because of corruption.
Having said that, how to do now the greatest opportunities are long gone and migrant labour a fact of life here? It calls for a social welfare program based on meritocracy and more dynamic free economy is the only real solution forward.
Complain about this comment
Like or Dislike:
0 
0