Could we have a more egalitarian society? In Australia, as in other countries where neoliberal policies have been in vogue in recent decades, the political will to tackle economic inequality has been conspicuously lacking. Governments have implicitly formulated their policy priorities on the assumption that economic inequalities facilitate productivity and economic growth. The evidence and arguments presented in preceding chapters in this book indicate good reasons to challenge this assumption. Extreme inequalities in income and wealth may actually undermine economic efficiency. Moreover, they contribute to an array of broader social, environmental and political problems – undermining social cohesion, public health, political legitimacy and environmental responsibility. They also impede the development of a more generally contented society. If people's perception of their happiness is judged according to what they have relative to others, then substantial economic inequality is a recipe for widespread social discontent.

Individuals can, and do, respond to these problems, sometimes by opting out of the endless pursuit of greater material wealth and seeking more balance in their personal lives between work and income, leisure and personal fulfilment. Individual responses do not substantially change the distributional inequalities though. More effective action, including redistribution through taxes and public expenditures, must come from governments, and through employment and incomes policies that not only guarantee a decent wage for the less well off, but also limit the excessive remuneration of the already affluent. Examples of these policies were considered in the preceding chapter.