Income Inequality during Ireland's Boom

In Ireland's boom years up to 2000 (particularly from 1994), most incomes clearly rose - but incomes of the 30% lowest-earning section of the population lagged behind. If one compares that 30% with the very highest individual incomes - which tend to dominate popular perception - one gets a picture of quite pronounced inequality. But, broadening out the high end of the comparison to cover the whole of even the top 10% of incomes, one finds no incontrovertible evidence that the rise in those particular incomes was precipitous (as compared to the rise at the middle range). If one counts only relative poverty (below 60% of median disposable income), the population affected increased in Ireland - according to one survey - from 16% in 1994 to 22% in 2000. But if one factors-in absolute or consistent poverty (according to measures of actual deprivation), the resultant figures show a decline in poverty - from 14% in 1994 to 6% in 2000. [Relative poverty is weighted heavily in the Human Poverty Index from the United Nations Development Programme - as is a low literacy level]. We have only to look to our European Union partners to see that both high levels of average income and low levels of inequality and poverty can be achieved and sustained. A set of tiered targets is required, which gives immediate priority to reducing deprivation and improving living standards for those on low incomes - but also works in the medium to long term towards reducing the gap between them and the rest of society. Already the National Anti-Poverty Strategy is committed (as are the parties to the recent social partnership agreement) to significantly increasing social welfare levels over time : these have been falling behind average income.