THE RECESSION has increased public concern and awareness of economic inequalities, according to a survey by an independent think tank released yesterday.
The vast majority (85 per cent) of those surveyed by Tasc said that wealth was distributed unfairly in Ireland. This was an increase of 15 per cent on 2008.
Over three-quarters (77 per cent) of those questioned were “very concerned” or “fairly concerned” at high levels of economic inequality in Ireland. The percentage of “very concerned” had increased by almost 10 per cent since last year.
The survey, which was conducted in May by Behaviour and Attitudes on behalf of Tasc, which campaigns for social change, was based on 1,000 respondents.
“As the recession bites and people become increasingly concerned about their own economic future, there has been a significant increase in the number of people who feel wealth is distributed unfairly,” Tasc director Paula Clancy said as she released the results.
Increasing numbers of people are aware of the "precariousness" of their economic situation, are concerned about their retirement prospects due to the financial crisis and are feeling the cuts in public services, said a Tasc report, The Solidarity Factor: Public Responses to Economic Inequality in Ireland, published with the survey.
A substantial number of the wealthiest section of society were “weathering the recession with ease and will be well-placed to benefit from a future economic upturn”, the Tasc paper said.
In relative terms, there was “unlikely to have been significant change” for this group due to the downturn, the report stated. However, the absolute wealth of the richest sector has contracted due to a collapse in the property market and a fall in the value of shares, it found.
The report outlined the impact of the recession on those below the very wealthy, namely the “comfortably off”, the “working poor” and the “materially resourceless”.
The “comfortably off” group was “rapidly becoming less comfortable and more discontented”, the report said. This group was now more likely to be in precarious employment, in negative equity or face a “relatively bleak future” due to collapse of pension shares.
The “working poor” was being hit hard by the decline in unskilled employment, such as in the retail, catering and construction sectors, the report said. This “working poor” group “gained least from the boom”, the report added.
Those at the bottom of the income ladder, which included unemployed, underemployed, lone parents and pensioners, were “bypassed by the boom” and are “currently bearing the brunt of Government cutbacks”, the report said.
This group would also be bypassed by any recovery unless there was a radical change in public policy, Tasc said.
The report concluded that inequality in Ireland had become “entrenched” and remained “scandalously high”, with the potential to increase further during the recession. It also said relative poverty remained high, despite decreases in absolute poverty during the boom.
The Tasc survey revealed a desire for action to reduce income inequality, with 85 per cent of respondents agreeing that the Government should take “active steps” to reduce the earnings gap.
The research also asked the public for reaction to an OECD finding that wealth distribution in Ireland is among the most unequal countries in the developed world. There was an increase in respondents that were not surprised at this finding, from 64 per cent in 2008 to 71 per cent in 2009.
