Changes in Official Poverty and Inequality Rates in the Anglophone World in the Age of Neoliberalism

Abstract

This article reviews the evolution of inequality and poverty in the Anglophone countries (the United States, the United Kingdom, Canada, Australia, New Zealand and Ireland) since the shift to neoliberal economic policies in the late 1970s. It provides brief summaries of the key definitions of inequality and poverty, which are separate but related phenomena. The article confirms the general impression that inequality has risen more quickly in this country group than in other developed countries. This is especially so for the United States, although Ireland is a notable exception with unchanged inequality levels. The article goes on to identify key policy characteristics of neoliberalism which have favoured capital over labour, and how they have contributed to consolidating the economic structure of these countries as “liberal market economies”. This in turn has impacted inequality, especially through strong cuts in top income tax rates.