
Image: The Blue Diamond Gallery (CC BY-SA 3.0)
Over the past three decades, income inequality has risen in most of the 34 member countries of the Organization for Economic Cooperation and Development. A recent analysis of 22 OECD countries from 1985 to 2013 found that inequality increased in 17 of them (including the US, UK, Canada and Germany), underwent little change in four (Belgium, Netherlands, France, Greece) and declined in only one (Turkey). Over the same period, in the 17 richest countries GDP growth primarily benefitted the top 10% of the population, with the bottom 40% receiving little from a quarter century of growth.
The prevailing explanation for rising inequality – the mainstream economics explanation – is that technology did it. There are no capitalists making investment decisions, no managers making employment decisions and certainly no class struggle. Only technical change, supply and demand. Here I want to make the case for the centrality of class struggle in driving inequality.