Quotulatiousness

June 12, 2024

“Consumption inequality” really has fallen significantly since Orwell’s day

Filed under: Books, Britain, Economics, History, USA — Tags: , , , — Nicholas @ 04:00

Tim Worstall on some of the points raised by Christopher Snowdon’s new introduction to Orwell’s Nineteen Eighty-Four:

Eric (“George Orwell”) Blair’s press card portrait, 1943

Eric Blair, the useful one, once pointed out that:

    In a world in which everyone worked short hours, had enough to eat, lived in a house with a bathroom and a refrigerator, and possessed a motor-car or even an aeroplane, the most obvious and perhaps the most important form of inequality would already have disappeared. If it once became general, wealth would confer no distinction.

That’s from Chris Snowdon’s new intro to 1984 – you should buy a copy.

Not that Eric knew enough economics to know this but what he’s talking about is consumption inequality.

Sure, we’ve Oxfam squealing that wealth inequality is rising summat fearsome. It ain’t — they fail to account for what we already do to reduce wealth inequality. Many tell us that income inequality is rising summat fearsome. It ain’t. Global income inequality has been falling this past 40 years and as all men are indeed brothers it’s the global number that matters.

But the one that’s really fallen like a stone is that consumption inequality. Consumption is also really the only one of the three that matters. Sure, a world in which there are those without three squares and a crib is not a good one. But once all do have three squares etc. then whatever other inequality there is is, well, it’s not actually all that important is it?

[…]

We really have got to what Orwell thought would be equality. In 1930s England (which was his mental reference point) all of these things – all – were signifiers of significant wealth or income:

As a poorer country the UK was a little behind on these things but my best guess would be that we’re ahead of the US on washing machines today (the US still has a habit of communal machines in apartment blocks). And it amuses that central heating isn’t even on the list. This was something very middle class indeed in the 1960s, really only became “normal” in the UK in the late 70s into the 80s. As with double glazing. These days you’re defined as being in fuel poverty if you cannot heat your house, always and all of it, to a level that no one at all could before that central heating. No, really, coal fire heated houses might average 10oC in winter and that would only be in rooms with an actual fire — others would be at 0oC.

This is not to get into a Four Yorkshiremen but people would be astonished at how cold houses were 1970s and earlier. My own arrival in the US in 1981 had me wondering how they had heating systems that heated all the house, properly, all winter. How could anyone afford that?

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