Home
/
RELIGION & LIBERTY ONLINE
/
Economic inequality: Perception and reality
Economic inequality: Perception and reality
Dec 18, 2025 12:24 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
Rendering to Caesar, God, and MasterCard
A press release from the National Association of Consumer Bankruptcy Attorneys, linked over at WorldMagBlog, claims that the bankruptcy reform legislation passed last year is being “reluctantly” interpreted by the United States Bankruptcy Court for the Northern District of New York to mean that “those going through bankruptcy may not tithe to their church or make other charitable donations … until after they have paid off credit panies and other creditors. Before the new law went into effect, bankruptcy court...
Subsidiarity Inverted
Jeff Mirus of CatholicCulture.org flogs an address by Capuchin friar and dean of theology at St. Mary’s Seminary and University in Baltimore, Father David Couturier. I share Mirus’s assessment that “one is at times unsure exactly what Fr. Couturier means,” but some of his points do seem at odds with the vision of charity articulated by, for example, Benedict XVI in Deus Caritas Est, as Mirus points out. Especially perplexing is Couturier’s statement concerning the role of Capuchin Franciscans in...
Evangelicals and the Brave New World: Why Natural Law Can No Longer Be Ignored
In the Introduction to an important new book by J. Budziszewski that engages four distinct traditions of evangelical political thought, Michael Cromartie observes: “While appreciative of the contributions of each of these thinkers [Carl Henry, Abraham Kuyper, Francis Schaeffer, and John Howard Yoder], Budziszewski finds fault with each, to a greater or lesser degree, for failing to develop a systematic political theory pelling as those offered by the secularist establishment. He suggests that evangelical political thought would be improved if...
Ex Ante vs. Ex Post Government Action
I haven’t started Marvin Olasky’s new book yet, but here’s a bit from the abstract of a new NBER paper, “Rules Rather Than Discretion: Lessons from Hurricane Katrina,” by Howard Kunreuther and Mark Pauly. Speaking of property owners who suffer severe damage and don’t have the resources to rebuild: To avoid these large and often uneven ex post expenditures, we consider the option of prehensive private disaster insurance with risk based rates. It may be more efficient to have an...
Abolish the FDA?
An interesting debate is going on over at Mere Comments. The main thread has to do with the morality of the Bush Administration’s approval of over-the-counter sales of the morning-after pill and the implications for Pennsylvania’s U.S. Senate race. Leaving those issues aside, I was struck by ment from “Daniel C.”, claiming that the problem really presents an “excellent case for dismantling the Food & Drug Administration.” It’s a question worth raising. I don’t know enough about the history or...
From the ‘Well, Duh!’ Department
“A human brain trapped inside a mouse’s body — not a good idea,” says Anjana Ahuja in the UK Times. Not convinced? Check out this piece of mine over at BreakPoint, “A Monster Created in Man’s Image.” ...
Francis Collins – A Believer Looks at the Human Genome
Christian geneticist and author (The Language of God: A Scientist Presents Evidence for Belief, Simon & Schuster Trade Sales) Dr. Francis Collins is the Director of the National Institutes of Health (NIH) National Human Genome Research Institute and head of the Human Genome Project. Recently he was the keynote speaker at the 61st Annual Meeting of the American Scientific Affiliation, a group of Christian geneticists, chemists and other scientists. Over the past week I transcribed his lecture from the audio...
The Marketer’s Morality
Seth Godin issued a call recently for marketers to take stock of their trade and embrace the moral aspects of their industry: “You’re responsible for what you sell. When you choose to sell it, more of it gets sold.” I particularly like how Godin emphasizes personal responsibility. This is something that is not unique to a particular profession, of course, and is therefore a reality that constantly needs to be reiterated. “As marketers, we have the power to change things,...
The Perfect, the Enemy of the Good
Voltaire had a saying: “The perfect is the enemy of the good,” or, “Le mieux est l’ennemi du bien.” It’s often repeated, especially in public policy circles, that the perfect the enemy of the good, implying that you should favor the realistic good that can be done rather than the unattainable perfect ideal. And now you know why. Because “good” beats “perfect” in a Google Fight, and by a rather handy margin. HT: Seth’s Blog, pares “unique”, “best”, and “finest”....
How a Missional Perspective Changes Culture
The only way that culture can be truly changed, in terms of the gospel, is by movements of the Spirit that are birthed in congregational life. The Christian Right thinks that it can alter culture by direct partisan political pressure led by media personalities and tried-and-true techniques. They could not be more sadly mistaken. The failure of this approach is self-evident over the course of the past six years. The late missional theologian Lesslie Newbigin understood this well when he...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved