The inequality cannot be eradicated by the income redistribution

28 january 2019 | Russia 1

The Principal Advisor of the Analytical Center Head, Leonid Grigoriev stated at the broadcast "The evening with Vladimir Solovyov" on the channel "Russia1" that the inequality of income that Russia ended up as a result of the events in 1990-s is not changing practically.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

According to Grigoriev, the income structure is forming jointly with public institutes, and it is quite difficult to change it as it is adhered to salaries and, primarily, property.

"China has received a huge inequality for 20-30 years, even higher than we have, and that is accompanied by a high economic growth; about one fourth of the Americans live on social security benefits", - Grigoriev provided an example that the growth of the economy does not reduce the inequality. The analogous story is with Western countries: with 2-3% growth, we observe demonstrations and strikes.

Grigoriev believes that the case is that the absolute poverty is decreasing at the planet, e.g, from 50% in the end of 1990-s to 15% at the present in Russia. But the inequality is much deeper, and now the crisis of the relative poverty is blooming. "The "yellow vests" are not quite poor, they are the so called "lower middle class" - those who do not believe that they will live better" - Grigoriev said. - "Macron increases the tax by 5%, and they understand that they will not be able to change their not expensive car, pay their vacation trip. The  "medium" does not receive the benefit and does not feel any positive dynamics. Although, these people may seem rich to someone living in Africa".

Grigoriev underlined that the established structure of income cannot be settled just by redistribution, even the Scandinavian model of economics is slowly "deflating". There is no universal method, although, according to the expert, a reasonable chance for the future may be ensuring the maximum equality for schoolchildren and students.

Source: Russia1