Home
/
RELIGION & LIBERTY ONLINE
/
Economic inequality: Perception and reality
Economic inequality: Perception and reality
Jan 28, 2026 8:17 AM

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
Pope Benedict’s human ecology
In his weekly column, the National Catholic Reporter‘s John Allen notes Pope Benedict XVI’s references to the environment during the recent World Youth Day events in Australia. Allen writes: Although the point didn’t get much traction amid the pageantry of World Youth Day, it’s a striking fact that the most frequent social or cultural concern cited by Pope Benedict XVI in Australia was the environment. The pope talked about ecological themes seven times. [snip] If there was a distinctive twist...
Election quandary for Catholics
Robert Stackpole of the Divine Mercy Insititute offers a thoughtful analysis of the positions of the major presidential candidates on health care at Catholic Online. I missed part one (and I don’t see a link), but the series, devoted to examining the electoral responsibilities of Catholics in light of their Church’s social teaching, is evidently generating some interest and debate. Stackpole’s approach is interesting because he tries to steer a course between the two dominant camps that have developed over...
Speaker Pelosi on San Francisco economics & values
The Business and Media Institute highlights House Speaker Nancy Pelosi’s response to a question about why conservatives and advocates for the free market degrade San Francisco as a city out of step with mainstream America. Pelosi believes it’s all about economics, and she points to the fact that government regulation and government programs in San Francisco are the model for America, and advocates for free markets are afraid of other citizens recognizing that. Pelosi says: In San Francisco, every child...
CRC Sea to Sea tour week 4
The fourth week of the CRC’s Sea to Sea bike tour has pleted. The fourth leg of the journey took the bikers from Salt Lake City to Denver, a total distance of 478 miles. The “Shifting Gears” devotional at the beginning of this week focuses especially on the relationship of the church to culture. On day 22, the devotion notes that the “crucial pillars of civilization–education, family, government, and science–are in a state of decline and disrepair.” This may seem...
Can the Pope save the art of reading in Italy?
In the July 24 edition of the Vatican newspaper L’Osservatore Romano , a couple of articles related how Italians are reading less than their European counterparts, with 62 percent of the population failing to read even a single book during the year. “Above all, reading increases innovative capabilities, the ability to understand phenomena and in the ultimate analysis, worker productivity,” said Federico Motta, president of the Italian association of publishers. According to Motta’s article, only 31 percent of Italian 20-29...
It’s bad when he says it
When Iranian President Mahmoud Ahmadinejad makes a public claim it’s typically controversial. So the AP filed a story with this headline in the Jersualem Post, “Ahmadinejad blames West for AIDS.” Clearly the JP went for shock value, as most other outlets chose to title the story something like, “Iranian president: ‘Big powers’ going down.” But there it is among a bunch of other accusations that Ahmadinejad leveled at a meeting of the Non-Aligned Movement (NAM). According to the AP, “Ahmadinejad’s...
Swinburne on God and morality
Last week I attended a lecture on the campus of Calvin College given by Richard Swinburne, Emeritus Nolloth Professor of the Philosophy of the Christian Religion, University of Oxford. His lecture was titled, “God and Morality,” and was the fourth in a series of lectures for a summer seminar, “Science, Philosophy, and Belief.” The seminar was focused on the development of Chinese professors and posgraduate students, and included lectures by Sir John Polkinghorne, Alvin Plantinga, and Owen Gingerich. Swinburne, who...
Acton Media Alert – Dr. Jay Richards on KKLA
Acton Research Fellow and Director of Media Dr. Jay Richards was on The Frank Pastore Show on KKLA in Los Angeles last night. Frank and Jay discussed the attempt to redefine the term “pro-life” in such a way that a pro-abortion candidate can claim to be “pro-life” in spite of their support for abortion; they also took a look at Barack Obama’s legislation that mit billions of dollars to the reduction of global poverty. You can listen to the discussion...
City Journal: The science of economics
The Summer issue of City Journal features a piece worth reading by Guy Sorman titled “Economics Does Not Lie.” The paper includes weighty arguments favoring a free market economic system and the author does a good job explaining the rationale of those who criticize a free economy. Sorman says: If economics is finally a science, what, exactly, does it teach? With the help of Columbia University economist Pierre-André Chiappori, I have synthesized its findings into ten propositions. Almost all top...
Global Warming Consensus alert: Flame on!
It must be tough to be Al Gore sometimes. We all know that the weather has a habit of not cooperating with his “major addresses” on global warming; how many times have his big pronouncements been panied by major snowstorms? Presumably, it would be better to try doing one of these speeches in the middle of summer, when you’re less likely to be iced out by the weather. But wouldn’t you know it – just when Gore gets his sweltering...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved