The
destructive applied policies lead to an impoverished society while
enhancing plutocracy
Spain
is in the first place, another country of the eurozone periphery
which suffers from the destructive neoliberal policies
Greece holds
one of the worst positions in European level concerning income
inequality, as the gap between the richest and the poorest people in
the country has broadened according to the Hellenic Statistical
Authority data released on Monday. Greece is in the second place
behind Spain according to the S80/S20 index and the gap inequality is
getting bigger.
The Hellenic
Statistical Authority (ELSTAT) announced data on inequality in income distribution,
based on the available results of the 2012 Survey on Income and
Living Conditions of Households (EU-SILC), with reference income
period the year 2011. Income inequality is mainly depicted by the
indicators S80/S20 (income quintile share ratio) and the Gini
coefficient (income inequality distribution). EU-SILC is the main
source for comparable statistics on income distribution and social
exclusion at
European
level.
In 2012 the
S80/S20 ratio, with reference income period the year 2011, rose to
6.6, meaning that the share of the income of the wealthiest 20% of
the population is 6.6 times higher than the share of the income of
the poorest 20% of the population. In 2008 the S80/S20 ratio, with
reference income period the year 2007, rose to 5.9 and in 2010 the
S80/S20 ratio, with reference income period the year 2009, rose to
5.6 .
The first
quartile of households (25% of households with the lowest income)
holds 8.7% of total national income, while in 2011 it held 9.4%. The
fourth quartile of households with the highest income holds 47% of
the total national income, while in 2011 it held 46.8% .
In order to
depict more accurately income inequality, another indicator - the
Gini coefficient - is complementarily used because as already
mentioned, the S80/S20 ratio is affected by the extreme values of
income distribution.
The Gini
coefficient is defined as the relationship of cumulative shares of
the population arranged according to the level of equivalised
disposable income, to the cumulative share of the equivalised total
disposable income received by them. If there was perfect income
equality (i.e. all persons receive the same income), the Gini
coefficient would be 0%. A Gini coefficient of 100% indicates that
there is total income inequality and the entire national income is in
the hands of one person. For example, a Gini coefficient of 30% means
that choosing randomly 2 persons, the difference between their income
is at 30% of the mean income.
In 2012 the
Gini coefficient increased by 0.7 percentage points compared with
2011 when the Gini coefficient was 33.6% . In comparison with 2008,
the overall inequality increased by 0.9 pencentage points (33.4% in
2008). In comparison with 2010, the overall inequality increased by
1.4 pencentage points (32.9% in 2010).
Inequality
of income distribution in Europe depicted by the S80/S20 ratio and
the Gini coefficient. At one extreme, the European country with the
highest rates is Spain (S80/20: 7.2% and Gini coefficient: 35%). At
the other extreme, the European country with the lowest rates is
Norway (S80/20: 3.2% and Gini coefficient: 22.6%). Greece holds one
of the worst positions (S80/20: 6.6% - 2nd worst and Gini
coefficient: 34.3% - 4th worst).
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