Home
/
RELIGION & LIBERTY ONLINE
/
Economic inequality: Perception and reality
Economic inequality: Perception and reality
Jan 20, 2026 6:00 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
Orthodoxy and economic globalization
AGAIN Magazine has published my “Conflicted Hearts: Orthodox Christians and Social Justice in an Age of Globalization.” The magazine is produced by Conciliar Press Ministries, Inc., a department of the self-ruled Antiochian Orthodox Christian Church of North America. Excerpt: Just as there is no real understanding of many bioethical issues without a general grasp of underlying medical technology, there is no real understanding of “social justice” without an understanding of basic economic principles. These principles explain how Orthodox Christians work,...
A note on social and intellectual history
Speaking of the history of morality and moral judgments in historiography, Alister MacIntyre makes a pointed observation about plementary distinction that arises between what might be called “intellectual” and “social” history: Abstract changes in moral concepts are always embodied in real, particular events. There is a history yet to be written in which the Medici princes, Henry VIII and Thomas Cromwell, Frederick the Great and Napoleon, Walpole and Wilberforce, Jefferson and Robespierre are understood as expressing their actions, often partially...
Washington Times on green candidates
Presidential front-runners and Senators John McCain and Barack Obama are lacking environmental leadership by failing to pay for offsets to cover their campaign carbon emissions. An article in the Washington Times titled, Green Crusades Lot of Talk, by Stephen Dinan, notes John McCain and Barack Obama aren’t leading by example. “Though both campaigns say they practice energy conservation, Mr. Obama offsets only some of his airplane flight emissions, while Mr. McCain doesn’t cover even that,” says Dinan. It looks as...
The cost of good intentions
Interesting: Backed by studies showing that middle-class Seattle residents can no longer afford the city’s middle-class homes, consensus is growing that prices are too darned high. But why are they so high? An intriguing new analysis by a University of Washington economics professor argues that home prices have, perhaps inadvertently, been driven up $200,000 by good intentions. Just some food for thought on a Friday afternoon. ...
Global Warming Consensus alert: Climate linked to sun
A Harvard Astrophysicist argues that global warming is more related to solar cycles than to carbon dioxide in the atmosphere. QUICK! Someone find out how Exxon managed to buy her off! In her lecture series, “Warming Up to the Truth: The Real Story About Climate Change,” astrophysicist Dr. Sallie Baliunas shared her findings Tuesday at the University of Texas at Tyler R. Don Cowan Fine and Performing Arts Center. Dr. Baliunas’ work with fellow Harvard-Smithsonian Center for Astrophysics astronomer Willie...
‘A Patriarch in dire straits’
Bartholomew I mentary this week looked at “Encountering the Mystery,” the new book from Ecumenical Patriarch Bartholomew I of the Orthodox Church. In 1971, the Turkish government shut down Halki, the partriarchal seminary on Heybeliada Island in the Sea of Marmara. And it has progressively confiscated Orthodox Church properties, including the expropriation of the Bûyûkada Orphanage for Boys on the Prince’s Islands (and properties belonging to an Armenian Orthodox hospital foundation). These expropriations happen as religious minorities report problems associated...
The glory of socialized medicine
It’s a shame that the marvel of government-controlled health care hasn’t been implemented in the US yet: Seriously ill patients are being kept in ambulances outside hospitals for hours so NHS trusts do not miss Government targets. Thousands of people a year are having to wait outside accident and emergency departments because trusts will not let them in until they can treat them within four hours, in line with a Labour pledge. What a fool I’ve been to oppose this...
Georgia town reconnects with radio legend
Ernie Harwell was calling the play by play over television for the first live televised sports broadcast from coast to coast. The series featured the famous “shot heard round the world” at the Polo Grounds in 1951. It’s possibly baseball’s most well known historic moment featuring a dramatic 9th inning home run by Bobby Thompson to defeat the Brooklyn Dodgers, sending the New York Giants to the World Series. It was Russ Hodges radio call of the same game, however,...
Climate change food for thought
“The challenge of climate change is at once individual, local, national and global. Accordingly, it urges a multilevel coordinated response, with mitigation and adaptation programs simultaneously individual, local, national and global in their vision and scope”, stated Archbishop Celestino Migliore, representative of the Holy See, at the 62nd session of the U.N. General Assembly, which took place earlier this month. The theme of the session was “Addressing Climate Change: The United Nations and the World at Work.” Much attention is...
Kosovo: Pandora’s Box
Nearly two years ago, in “Who Will Protect Kosovo’s Christians?” I wrote: Dozens of churches, monasteries and shrines have been destroyed or damaged since 1999 in Kosovo, the cradle of Orthodox Christianity in Serbia. The Serbian Orthodox Church lists nearly 150 attacks on holy places, which often involve desecration of altars, vandalism of icons and the ripping of crosses from Church rooftops. A March 2004 rampage by Albanian mobs targeted Serbs and 19 people, including eight Kosovo Serbs, were killed...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved