What can be done about inequality?

What can be done about inequality?

On a national level, welfare regimes can reduce inequality. The liberal welfare regime dominates in Anglo-Saxon countries such as the US, UK and Australia. It is a “residual” welfare state focusing on those who cannot take care of themselves in the market economy: the sick, people with special needs, the elderly, the unemployed. This regime holds that everyone else should care for themselves. The middle classes try to remain independent from welfare benefits – private solutions such as private schools, private pensions and private health insurance emerge.

The conservative welfare regime dominates in continental Europe in countries such as Germany, Austria and France. Access to a large part of the social security benefits is linked to participation in the labour market and/or citizenship. This creates a welfare state for “insiders” and non-insured “outsiders”. The social democratic welfare regime dominates in Scandinavia. It guarantees universal social rights and provides well-developed public social infrastructures, education, health, care and decent housing for all. 

While these traditional welfare state types have (in all their differences) focused on social issues, 21st century welfare states need to provide new answers that integrate equality with carbon budgets. So far, the social achievements of welfare regimes were built on the use of an unsustainable share of global biocapacity, at the cost of other world regions and future generations.

Tackling inequality in times of climate crisis means that equality needs to be achieved without transgressing the planet’s limits. This requires new answers for socio-ecological welfare regimes. While monetary policies can effectively alleviate existential needs and strengthen individual self-determination, they are not sufficient.

To tackle the climate crisis structures that enable everyone to meet their needs with low resource consumption are vital. Sustainably provided public transport and affordable access to sustainable energy, water, housing, health, care and education help to limit the importance of money and consumption in meeting needs. Social-ecological infrastructures encompass much of what individuals cannot afford with money: from greenery in the street and libraries to public swimming pools.

Affordable socio-ecological infrastructures can provide security, offer space for individual lifestyles, strengthen social cohesion and create resource-saving structures. In the 21st century equality means that an ecological way of living is neither a privilege nor a sign of poverty, but simply becomes a routine, a new normal. Ultimately, it is a question of democratic deliberation what social protection floor should be provided for everyone in the light of a finite carbon budget. Reducing inequality is vital if all people are supposed to live a good life in times of reducing carbon emissions drastically.