Home
/
RELIGION & LIBERTY ONLINE
/
Economic inequality: Perception and reality
Economic inequality: Perception and reality
Dec 10, 2025 4:04 PM

There is a link between economic inequality and national stress and unrest – but it may not be the relationship you assume. Rising media coverage of inequality makes people worry about their finances and believe their country is unjust, even if their es and economic fortunes are improving, a new study has found.

The number of German media stories about inequality has “more than quadrupled between 2001 and 2016,” according to the Cologne Institute for Economic Research (IW). Reports about e gaps have doubled over the last decade alone, even though measures of such equality have actually decreased.

Researchers from IW and EcoAustria reviewed more than 640,000 media reports, then interviewed 30,700 people repeatedly over a 14-year period. Perhaps unsurprisingly, they found that the more reporters emphasized inequality, the more people expressed concern over the state of the economy.

Media coverage of inequality within “three consecutive days before the respective interview is significantly negative for [stoking] the worries of the interviewees.”

More news stories of economic inequality also made German citizens question their nation’s mitment to justice. A one percent increase in stories about inequality made Germans 11 percent less satisfied with their country’s level of “social justice” (the term IW used).

This increase in anxiety and discontent is taking place despite the fact that actual economic conditions have been continually improving. According to the World Bank, GDP per capita has had a virtually unbroken increase since 1989, rising from $30,988 to $45,551 in constant 2010 U.S. dollars.

This has benefited citizens across the nation, including the munist eastern part of the reunified land. “From 1991 to 1997, per capita GDP grew in eastern Germany at a rate of 60 percent – a parable to the growth seen in West Germany from 1950 to 1956 during the so-called postwar ‘economic miracle,’” according to Deutsche Welle. By 2013, the nominal e level in eastern Germany had risen to 89 percent of that in the western part of the country.

Most of the increase in poverty is due to the influx of migrants, according to the Institute of Economic and Social Research. Poverty among native-born Germans actually decreased last year.

Like the UK, Germany defines “poverty” as anyone making 60 percent of the median e or less. As I’ve noted, that doesn’t actually record poverty; it records inequality. Germany’s booming economy means that “the poor” made 76 euros more each month in 2016, than they did in 2010, adjusted for inflation.

Even economic inequality has been falling. The World Bank shows the Gini Coefficient declining from 2006 to 2011, due to the Great Recession. (As the economy improved, inequality risen, then fallen again.)

Left to their own devices, Germans consider their lives more fulfilling than others in the developed world. On a scale from one-to-10, the average German rates his life satisfaction at 7, higher than the OECD average of 6.5.

But IW found it took but a few media stories to shatter all that national contentment.

“Overall, there is no link between perceived inequality and actual e inequality across national boundaries,” say the authors of the report, which is titled, “Distorted perception: How reports of inequality are unsettling.” However, they note “the political preferences of voters are shaped by subjective perceptions rather than by actual developments.”

The increased worry can be chalked up to widespread misunderstanding of economics. Well-meaning people assume that growing inequality means greater poverty and privation. The elites appear to be hoarding finite resources, which (it is often implied) may have been immorally acquired. However, “inequality” is a misleading measure. It does not evaluate people’s well-being, the nation’s fiscal trajectory, or whether people are better or worse off than they had been.

The IW chides reporters for failing to distinguish these phenomena adequately. “Traditional media still have an influence on the perception of the population,” said IW researcher Matthias Diermeier. “With this responsibility, they should handle it carefully.”

Journalists could undeniably be more responsible in their coverage of economics. But citizens, especially Christians, have a responsibility to receive and process information carefully, as well.

Reporting on inequality can too easily stir jealousy against those blessed with greater opportunities. One of the spiritual lights of his day – John Vianney, the Curé of Ars – tied contentment and the lack of worry with the absence of envy.

“Good Christians … envy no one; they love their neighbor; they rejoice at the good that happens to him, and they weep with him if any es upon him,” he said. “Let us, then be good Christians and we shall no more envy the good fortune of our neighbor.” If we do that, “we shall enjoy a sweet peace; our soul will be calm. We shall find paradise on earth.”

domain.)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Using Drones for Good
Drones, or unmanned aerial vehicles (UAVs), have been a prominent and controversial topic in the news of late. Today, the Washington-based Stimson Center released its mendations and Report on US Drone Policy. The think tank, which assembled a bipartisan panel of former military and intelligence officials for the 81-page report, concluded that “UAVSs should be neither glorified nor demonized. It is important to take a realistic view of UAVs, recognizing both their continuities with more traditional military technologies and the...
Justice Alito: ‘For-Profit’ Businesses Pursue More Than Material Gain
In a 5-4 decision, the Supreme Court just announced its ruling in favor of Hobby Lobby, holding that, “as applied to closely held corporations, the government’s HHS regulations imposing the contraceptive mandate violate the Religious Freedom Restoration Act of 1993 (RFRA).” The full opinion, written by Justice Samuel Alito, can be read here. Although there is still much to digest, and although the majority opinion still leaves quite a bit of room for related battles to continue, it’s worth noting...
Video: Rev. Sirico on Hobby Lobby Ruling
Earlier today, Rev. Sirico spoke with WSJ Live’s Mary Kissel about the contraceptive mandate ruling, religion’s place in the public square, and the historical context of the Supreme Court’s decision. Watch below: ...
A Cultural Case for Capitalism: Part 11 of 12 — The Challenges
[Part 1 is here.] Economic freedom does generate certain challenges. The wealth that free economies are so effective at creating brings with it temptation. Wealth can tempt us to depend on our riches rather than on God. The temptation can be resisted, as we see with wealthy biblical characters like Abraham and Job. But it’s a challenge the church should be mindful of, helping its members cultivate a balanced view of money and of our responsibility and opportunities as stewards...
Video: Rev. Sirico on Pope Francis and the Mafia
Earlier today, Rev. Robert Sirico spoke with Fox News’ Lauren Green on ‘Spirited Debate’ about Pope Francis’ decision to municate members of the Italian mafia. From Heard on Fox: “Italy has e increasingly more secular and that has impacted the secularity of the mafia – they don’t have the kind of dramatic religious ties that they might have had at one time … the stuff of which movies portray,” said Sirico. He added, “they [the mob] have an appearance of...
What You Should Know About the Contraceptive Mandate Decision
This morning the U.S. Supreme Court issued a ruling on the Health and Human Services (HHS) contraceptive mandate (see here for an explainer article on the case). The Court ruled (5-4) that that employers with religious objections can opt out of providing contraception coverage under the Affordable Care Act. Here are six points you should know from the majority opinion written by Justice Samuel Alito: 1.The “Hobby Lobby” decision is really a collection of three separate lawsuits. Although the focus...
From Steadfast Conservatives to the Faith and Family Left: Highlights from Pew Research’s Political Typology Survey
In discussions of political issues, the American public is too often described in a binary format: Left/Right, Republican/Democrat, Red State/Blue State. But a new survey by the Pew Research Center takes a more granular look at our current political typology by sorting voters into cohesive groups based on their attitudes and values: Partisan polarization – the vast and growing gap between Republicans and Democrats – is a defining feature of politics today. But beyond the ideological wings, which make up...
Key Quotes from the Hobby Lobby Decision
Supreme Court Justice Samuel Alito wrote the majority (5-4) opinion in Burwell v. Hobby Lobby. The decision was decided in large part because it aligns with the Religious Freedom Restoration Act, a law that passed the U.S. Senate 97-3 and was signed by President Bill Clinton in 1993. The law is intended to prevent burdens to a person’s free exercise of religion. At the time, it had wide ranging bipartisan support and was introduced in the House by current U.S....
Calvin Coolidge’s warning against an entrenched bureaucracy
As we read about the increase of scandal, mismanagement, and corruption within our federal agencies, it is essential once again to revisit the words of Calvin Coolidge. Recent actions at the IRS, Veterans Administration, and the ATF gunwalking scandal all point to systemic problems e from an entrenched bureaucracy. As more and more of the responsibilities of civil society is passed over to centralized powers in Washington, federal agencies have exploded with power and control, leading to greater opportunities for...
Finding Meaning in Blue-Collar Work
Over at the Patheos Faith and Work Channel, Larry Saunders shares about his journey from pastor to grocery-store clerk to blue-collar factory worker to current MBA student in search of a white-collar job, offering deep and personal reflections on faith, work, and meaning along the way. When he became a United Methodist pastor, Saunders enjoyed certain aspects of what he calls the “white collar work of ministry,” finding “a strong correlation between my personal sense of vocation and my gifts.”...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved