In 1990, Prime Minister Margaret Thatcher of Britain was challenged by a Labour member of Parliament on the subject of growing inequality. “All levels of income are better off than they were in 1979,” she retorted. “The honorable member is saying that he would rather that the poor were poorer, provided the rich were less rich. … What a policy!”
That slap-down was an iconic formulation of a premise of the Thatcher-Reagan conservative revolution: Poverty is a social problem, but inequality, as such, is not. Governments should aim to increase the incomes and opportunities of all, especially the poor, but to worry about the gap between the rich and the rest is “the politics of envy.”
Morally speaking, Mrs. Thatcher and Ronald Reagan should have been right. As long as I am better off, why should I begrudge your doing better still? Yet something was amiss with this consensus — something that goes far to explain why Reagan-Thatcher conservatism has caved in under pressure from the populisms of President Drumpf on the right and Senator Bernie Sanders of Vermont on the left.
In America (and also in other countries), an impressive postwar rise in material well-being has had zero effect on personal well-being. The divergence between economic growth and subjective satisfaction began decades ago. Real per capita income has more than tripled since the late 1950s, but the percentage of people saying they are very happy has, if anything, slightly declined... (continues)
-Jonathan Rauch (author of “The Happiness Curve: Why Life Gets Better After 50”)
