Home
/
RELIGION & LIBERTY ONLINE
/
Economic inequality: Perception and reality
Economic inequality: Perception and reality
Jan 28, 2026 9:18 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
In defense of private property
While there is a general acceptance of the role of private property for social order and economic prosperity, the challenges to private property have not ended. The eminent domain issue is one threat; es from environmentalist groups such as the Foundation for Deep Ecology and others who see humans as a drain on the earth and nature. Some environmentalists advocate the consolidation of land to be put under federal control and promote stringent land usage restrictions that would prevent a...
Mulling over malaria
Kofi Akosah in Accra, Ghana, writes in the latest Campaign for Fighting Diseases newsletter about the prospects for the use of DDT in fighting malaria in his home country. He first describes the devastation that the disease wreaks: “More than 17 million of Ghana’s 20 million people are infected by malaria every year, costing the nation a colossal 850 million cedis (US$94 million) for treatment alone.” He continues, “Those infected by malaria are in and out of hospital and unable...
Lent: freedom and responsibility
I would like to highlight another passage from Pope Benedict’s homily (mentioned below by Kishore) from last Sunday’s homily that has particular relevance to our work at Acton: We have listened together to a famous and beautiful passage from the Book of Exodus, in which the sacred author tells of God’s presentation of the Decalogue to Israel. One detail makes an immediate impression: the announcement of the Ten Commandments is introduced by a significant reference to the liberation of the...
Giving credit where credit is due
A snippet from Ecumenical News International: Presbyterians invest $1 million in church ‘bank’ that helps poor New York (ENI). The Presbyterian Church (USA) has invested US$1 million in Oikocredit, an organization established by the World Council of Churches that assists people in poor countries start small businesses. The investment is the largest in Oikocredit over more than a decade, the church announced earlier this week, making the 2.4-million-member US denomination the second-largest investor in the institution set up in 1975....
The North American Church and global stewardship
In this week’s Acton Commentary, “The North American Church and Global Stewardship,” I note that blessed with extraordinary material riches, Christians in North America are increasingly viewing their stewardship responsibilities in a global context. I look at one school in British Columbia and how their local building project also raised funds for a school in Sierra Leone. Dennis DeGroot, principal of Fraser Valley Christian High School, writes and informs me, “The money ing in for the school project. The students...
I Am David
If you haven’t seen it yet, I mend the film I Am David with Jim Caviezel and Ben Tibber. It is about a young boy, David, who escapes from a Bulgarian Prison Camp and undertakes a journey northward to Denmark. It is based on the children’s novel North to Freedom by Ann Holm. The movie contrasts the horror munist prison camp life with daily life of people in free societies. Normal everyday interactions of young David with a wealthy Italian...
Monasticism and the future of Europe
There’s a perceptive article by Christopher Levenick on the Weekly Standard’s site. It’s titled “Monkish: What the increase of monastic vocations in Italy could mean for European secularism”. First, the surpising data: Italy […] is often viewed as a case study in secularization. Yet across the peninsula, weekly attendance at Catholic Mass has been steadily climbing for two decades. In 1980, roughly 35 percent of Italians regularly attended the Mass; by 2000 that figure had climbed to nearly 50 percent....
Costs and benefits of immigration
Hunter Baker at The Reform Club passes along a column by Maggie Gallagher that has him “rethinking” his position concerning illegal immigration. Gallagher notes, “Economic studies suggest that overall, immigration is a net wash, or a slight plus, for the American economy. But the pluses and minuses are not evenly distributed over the whole population: Lesser-skilled Americans pete for jobs that don’t require Ivy League credentials take the hit, while people like me enjoy a lot of the benefits.” Andrew...
More on the faith-based initiative
mentary last week on the situation of the Silver Ring Thing has occasioned some conversation on the Blog (here, here, here, and here). The consensus on the faith-based initiative seems to be that, in the words of William L. Anderson, they “were pointing out at the beginning that this was a bad idea, and that taking the state’s money ultimately would mean that the state would be interfering with the larger mission of these religious groups.” Contrariwise, Joseph Knippenberg, who...
Faith in the faith-based initiative
Joe Knippenberg raises three issues with respect to my critique of the faith-based initiative (here and here). He writes first, “any activity that depends upon money is potentially corrupting, whether the source is governmental or private…. Why governmental money is different from private in this regard isn’t clear to me.” I agree that the potential for corruption is present in both cases, but the immediate constituency differs from private to public funds. For the former, the donors are the immediate...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved