Which class are you in? – Econlib

Which class are you in? – Econlib

Report on Perspectives of Class and Economic Justice in Relation to Sustainable Development Goals (SDGs)

Introduction

This report examines contemporary views on social class, particularly focusing on progressive definitions based on income or wealth. It critiques these perspectives and highlights the implications for social cohesion and economic justice, with a significant emphasis on the Sustainable Development Goals (SDGs), especially SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Critique of Income-Based Class Definitions

  1. Progressive views often define class strictly by income or wealth quintiles, which may oversimplify complex social identities.
  2. Personal experience across all income quintiles suggests that income alone does not determine class identity.
  3. Example: A New York mayoral candidate’s perspective groups the 1% and the 98% together against the top 1%, which raises questions about the validity of such classifications.

Historical Context and Contemporary Challenges

  • Traditional Marxist class theory distinguished between capitalists (bourgeoisie) and workers (proletariat), offering a clearer framework.
  • Modern lumping of diverse groups into broad classes (e.g., 1% and 98%) lacks logical coherence and may hinder effective policy-making.
  • This misclassification can affect political coalitions and voter behavior, as different groups have distinct economic interests and identities.

Implications for Sustainable Development Goals

Understanding class dynamics is crucial for advancing several SDGs:

  • SDG 1: No Poverty – Policies must recognize the varied experiences of poverty and economic insecurity beyond income metrics.
  • SDG 8: Decent Work and Economic Growth – Emphasizing economic growth and job creation aligns with aspirations for upward mobility and improved living standards.
  • SDG 10: Reduced Inequalities – Addressing inequality requires nuanced understanding of class and economic realities to foster social inclusion.

Case Study: Aspirational Economic Agendas

Matt Yglesias highlights the importance of articulating an aspirational agenda focused on material prosperity:

“The name comes from Ruben Gallego’s remarks about the importance of articulating an aspirational agenda of material prosperity as part of Democrats’ pitch to working class people.”

“Every Latino man wants a big-ass truck… These are the conversations that we should be having. We’re afraid of saying, like, ‘Hey, let’s help you get a job so you can become rich.’”

This approach emphasizes economic growth and abundance, aiming to raise absolute living standards rather than focusing solely on inequality.

Conclusion

  1. Progressive discourse on class needs to move beyond simplistic income-based definitions to better reflect lived experiences and aspirations.
  2. Effective engagement with diverse social groups is essential for building inclusive coalitions that support the SDGs.
  3. Promoting economic growth and opportunity aligns with the goals of reducing poverty and inequality, fostering sustainable development.

1. Sustainable Development Goals (SDGs) Addressed or Connected to the Issues Highlighted in the Article

  1. SDG 1: No Poverty – The article discusses economic disparities, income quintiles, and the struggles of low-income individuals, including homeless people, which relates directly to poverty eradication.
  2. SDG 8: Decent Work and Economic Growth – The focus on economic justice, job creation, and aspirations for material prosperity and economic growth ties into promoting sustained, inclusive economic growth and decent work for all.
  3. SDG 10: Reduced Inequalities – The article debates class distinctions, income inequality, and social stratification, which are central to reducing inequalities within and among countries.
  4. SDG 16: Peace, Justice and Strong Institutions – The discussion about political coalitions, voting behaviors, and social class perceptions indirectly relates to fostering inclusive societies and effective institutions.

2. Specific Targets Under Those SDGs Identified Based on the Article’s Content

  1. SDG 1: No Poverty
    • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children living in poverty in all its dimensions according to national definitions.
    • Target 1.3: Implement nationally appropriate social protection systems and measures for all.
  2. SDG 8: Decent Work and Economic Growth
    • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
    • Target 8.5: Achieve full and productive employment and decent work for all women and men.
    • Target 8.6: Reduce the proportion of youth not in employment, education or training.
  3. SDG 10: Reduced Inequalities
    • Target 10.1: Achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average.
    • Target 10.2: Empower and promote the social, economic and political inclusion of all.
  4. SDG 16: Peace, Justice and Strong Institutions
    • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels.

3. Indicators Mentioned or Implied in the Article to Measure Progress Towards the Identified Targets

  1. Income Quintiles and Income Distribution
    • The article references income quintiles (bottom 20% to top 20%) and income percentiles (1%, 98%, 99%), which relate to indicators measuring income distribution such as the Palma ratio or income share held by different population segments.
  2. Employment and Job Creation
    • Indicators related to employment rates, particularly among low-income and working-class populations, including youth employment rates and minimum wage levels.
    • Measures of access to decent work and entrepreneurship opportunities, as implied by the discussion on helping people get jobs and start their own businesses.
  3. Social Protection Coverage
    • Indicators measuring the coverage and effectiveness of social insurance programs, as the article contrasts workers’ incomes with non-workers living off social insurance.
  4. Political Participation and Inclusion
    • Indicators on voter turnout and political representation of various social groups, implied by the discussion on voting behavior and political coalitions.

4. Table: SDGs, Targets and Indicators

SDGs Targets Indicators
SDG 1: No Poverty
  • 1.2: Reduce proportion of people living in poverty.
  • 1.3: Implement social protection systems.
  • Proportion of population below national poverty line.
  • Coverage of social protection systems.
SDG 8: Decent Work and Economic Growth
  • 8.3: Promote policies supporting job creation and entrepreneurship.
  • 8.5: Achieve full and productive employment.
  • 8.6: Reduce youth not in employment, education or training.
  • Employment-to-population ratio.
  • Youth unemployment rate.
  • Number of new businesses/startups.
SDG 10: Reduced Inequalities
  • 10.1: Income growth of bottom 40% higher than national average.
  • 10.2: Promote social, economic and political inclusion.
  • Income share held by bottom 40%.
  • Measures of social inclusion and political participation.
SDG 16: Peace, Justice and Strong Institutions
  • 16.7: Ensure inclusive and representative decision-making.
  • Voter turnout rates among different social groups.
  • Representation of marginalized groups in political institutions.

Source: econlib.org