Economic inequality: Holistic action is needed

A new economic report warns that it is the working and lower-middle classes that are struggling the most in Ireland.

The report, produced by TASC, the Think-tank for Action on Social Change, reveals that the top 10% of Irish residents receives almost 25% of the national income.

Ireland is not unique in this by any means, but, according to the report, it is one of the most unequal countries in Europe.

The issue of economic inequality is something that needs to be tackled at government level.

The question, of course, is how to go about it.

One of the answers is to increase the income of lower paid workers. Up to now the only way the Government has addressed it is to increase the statutory minimum wage.

The problem with continuing to do that is that it hits small indigenous industries the hardest while doing little to take people out of poverty.

Last March, the OECD, in its economic survey of Ireland, pointed to increased productivity as the best way to achieve better incomes for poorer people.

That will take time. A more holistic approach is needed because the problem is not solely about earned income. It is also about the high cost of living without corresponding services to ameliorate that.

Any solution that will take working people out of poverty must also include universal healthcare, affordable childcare, and subsidised housing.

Raising the minimum wage is just tinkering with the problem, not fixing it.