4 - Inequality Saps Resilience

Summary

This chapter explores the rapid increase in wealth and income inequality and the doubling of child poverty during the Thatcher decade, 1979–90, when neoliberalism rose to ascendency. It looks at how this sapped the population’s resilience as less obvious but equally pervasive inequalities of health and economic opportunity took root, with cuts to public services including education, public health and adult social care ratcheted up during the post-2010 austerity. It will present evidence that inequality reduces economic growth, harms children’s life chances and undermines social cohesion, while the super-rich do disproportionate environmental damage.

The chapter will then show how those who need to fall back on the social safety net to claim Universal Credit and its predecessor benefits have been subjected to relentless cuts in entitlements, a four-year benefit freeze and a five-week waiting period that pushed people into reliance on food banks and plunged many into permanent debt. It will conclude by looking in further depth at why, in the light of all of this, COVID-19 was anything but levelling in its impact, as so many people had little or no savings to cushion them and were unable to afford to take time off sick or to self-isolate.