Measuring Inequality

Development: Time to Leave GDP Behind

Authors: Robert Costanza, Ida Kubiszewski, Enrico Giovannini, Hunter Lovins, Jacqueline McGlade, Kate E. Pickett, Kristín Vala Ragnarsdóttir, Debra Roberts, Roberto De Vogli, & Richard Wilkinson.

Gross domestic product is a misleading measure of national success, measuring mainly market transactions and ignoring social costs, income inequality and environmental impacts. Yet, despite this, since the end of the Second World War it has been the primary national policy goal in almost every country.

The Cost of Inequality

This briefing note uses quantitative analysis to explain how the social and economic impact of inequality costs the UK the equivalent over £39 billion every year.  

The UK has the second highest level of inequality of the developed OECD countries. The report estimates that if inequality was reduced to the average level seen in these countries, the UK could expect to: