Equality Counts

Lorenz curves show in quintiles the cumulative percentage of incomes against the cumulative percentage of households. They give a picture of inequality against a line of equality. A Lorenz curve can also be drawn to measure wealth against individuals. The distribution of wealth is usually more unequal than the distribution of income in most market economies. Lorenz curves are measured at a point in time. The difference between the top 20% and the bottom 20% can be quite staggering. The Gini Coefficient shows inequality over time. The households most likely to be on the lowest incomes are those with one adult. Characteristically a widow over 75 will be among the poorest and households with two 30-50 year old graduates with two children will be among the best off.

Attitudes towards money are not necessarily related to how much people have and managing money is as much a state of mind. Money can have a variety of associations such as success, security and freedom. How much money is spent isn't the only important determinant of social structure. How it is spent is also important. Some people like to flaunt it, others prefer to keep it quiet. Some people can afford to give a lot to charity and worthy social causes. Poorer people also give what they can even though they have less to spend and the same basic needs. Social class also affects access to the means of production. The rich control resources and use the labour of those who have to sell their labour to survive, to maintain their position. In some societies changing social class can be very difficult. Variables like occupation and income are determinants of social class. Education is closely related. Differences in endowments of the means of production also affect income inequality and all of these are affected partly by the choices we make.

Social class may still be an important way to segment customers but there are many failings yet to overcome.