Home
/
RELIGION & LIBERTY ONLINE
/
Economic inequality: Perception and reality
Economic inequality: Perception and reality
Dec 6, 2025 5:10 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
Straight talk on poverty & the family
A call to end poverty through more spending by the federal government is forever professed by some candidates and politicians. Maybe, they say, if just more money was appropriated and distributed this time, the results and relief for those in financial need would be conclusively different? Former President Clinton at least ran for office as a “new Democrat,” went on to declare the end of the era of big government, and signed welfare reform. Clinton was the first Democrat to...
Anthony Bradley on headline news
Acton Research Fellow Anthony Bradley was featured on The Glenn Beck Program on Headline News Network to discuss black liberation theology with host Glenn Beck on Wednesday night. If you didn’t catch his appearance, you can watch it right here on the PowerBlog. And for more on the topic with Anthony Bradley and Rev. Robert A. Sirico, check out the most recent edition of Radio Free Acton – Obama and Religion, Part I. ...
Hoekstra: ‘Islam and Free Speech’
In today’s Wall Street Journal, Rep. Peter Hoekstra discusses the impending release of Fitna, a short film highly critical of Islam, by Geert Wilders, a member of the Dutch parliament. Hoekstra: Radical jihadists are prepared to use violence against individuals to stop them from exercising their free speech rights. In some countries, converting a Muslim to another faith is a crime punishable by death. While Muslim clerics are free to preach and proselytize in the West, some Muslim nations severely...
Truth and consequences
Tonight FOX’s new hit gameshow “Moment of Truth” will air its latest installment. For those not familiar with the show’s premise, the contestant submits to a lie detector test before the show is taped. A series of questions are asked which form the basis for the pool of questions that will be asked again during the taping. If the answers given during the taping match the results of the previous interview, the contestant stands to win a great deal of...
Should water have a price?
In a front-page article of the March 20-21 edition of the Vatican’s newspaper, L’Osservatore Romano, entitled “L’aqua une per tutti” (“Water: Common Good for All”), an Italian political scientist laments that a basic necessity of life is bought and sold. Riccardo Petrella of the Catholic University of Louvain in Belgium is rightly concerned that a billion people do not have access to clean drinking water. While he criticizes world leaders for not making this problem a top priority, his main...
“We must overcome fear”
In the Catholic Church, the Easter Vigil liturgy is usually the ceremony during which catechumens (non-Christians) and candidates (non-Catholic Christians) are respectively baptized and received into the Church. In Rome this Easter there was a particularly noteworthy baptism, presided over by Pope Benedict. Magdi Allam is an Italian journalist who converted from Islam to Christianity. Instead of taking mon route of doing so as inconspicuously as possible—an approach that is perfectly reasonable given the risks entailed by such a move—Allam...
Medvedev and Madison
Russian emigre philosopher Georgy Fedotov (1888-1951) proposed two basic principles for all of the freedoms by which modern democracy lives. First, and most valuable, there are the freedoms of “conviction” — in speech, in print, and in organized social activity. These freedoms, Fedotov asserted, developed out of the freedom of faith. The other principle of freedom “defends the individual from the arbitrary will of the state (which is independent of questions of conscience and thought) — freedom from arbitrary arrest...
Pollyanna Krugman
In mentary on Social Security yesterday, I referred to the latest trustees’ report as evidence of the continuing need for reform. Anyone who happened to see New York Times columnist Paul Krugman’s blog a day earlier might understandably wonder whether we were looking at the same report. Krugman highlights a modestly improving actuarial balance as justification to conclude, “Social Security’s financial problem is relatively minor. It doesn’t deserve the emphasis it receives from most pundits.” One of menters corroborates what...
Global Warming Consensus alert: I hope your earth hour party was as crazy as mine!
It’s been a while since we’ve seen pletely meaningless gesture on behalf of the unsinkable global warming consensus. As such, it’s my pleasure to announce that the next meaningless gesture will occur… last Saturday? Oops. Yes, Saturday evening saw the arrival of Earth Hour, an 8-9 pm extravaganza of switching off lights that apparently not many people knew about. For example, here’s the local reaction from the Grand Rapids Press: …some of Grand Rapids’ most prominent environmentalists, including Mayor George...
We Need a Menaissance
This bit in this week’s Telegraph nails something I’ve been wrangling with for a while. Maybe you men out there can relate: Many men believe the world is now dominated by women and that they have lost their role in society, fuelling feelings of depression and being undervalued. Research shows the extent to which men have had to change within one or two generations, adapting to new rules and different expectations. Asked what it meant to be a man in...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved