Idiosyncrasies of recent growing inequalities in Hungarian income distribution

BALÁZS KRÉMER Idiosync asies o ecen g owing inequali ies in Hunga ian income dis ibu ioni In oduc ion Du ing pas yea s o inancial c ises and “g ea ecession” mos o he Eu opean coun ies ha e expe ienced widening income inequali ies. These g owing dispa i ies a e mul i ac o ial, no simply a ec ed by ea ned incomes in labo ma ke s, social ans e s o iscal policies and e enue egimes, bu also by indi ec consequences o ea lie unning indeb edness and amo izing loans. This pape a emp s o ake in o accoun a ious ac o s o g owing income inequali ies, and Hunga ian biases om in e na ional ends. As a conclusion, we will a gue ha ela i ely high and apid g ow hs o Hunga ian inequali ies canno seen and in e p e ed as an unlucky consequence o g ea ecession, a he as an ou come o in ended poli ics o uling go e nmen . Income inequali y ends Con empo a y social discou se has pu he subjec o inequali y in o new insigh s. Social inequali y is no simply iden ical issue wi h he humani a ian ouble o po e y, any mo e; i is a he an o e all ac o o social and economic de elopmen . Wilkinson and Picke (2009) p o ided e idences ha la ge inequali y no only leads ha dships o bo om s a a o socie ies, bu also, o e all social and well-being indica o s a e wo se in less equal socie ies, han in mo e unequal ones. K ugman (2012), S igli z (2012) and Pike y (2014) con on ed wi h adi ional app oaches supposing ha mo e unequal dis ibu ion o income and weal h would c ea e mo e sa ings, mo e in es men s, mo e job-c ea ion, and inally as e economic g ow h – and egali a ian iscal in e en ion and edis ibu ion by hei na u e slows down heal hy ma ke s and economic de elopmen s. The a e -c ises “new economics” discuss social inequali ies as damaging ac o o ma ke demands, he “secu i y” o ma ke mechanisms, c ea es concen a ion o powe ha des oys such ounda ions o ma ke s and capi alism, like ee compe i ion and en e ing new ac o s in o ma ke s. In he below pape we do no wan o con ibu e in o ha high-li ed deba es on he ele ance o inequali ies in economics and poli ical economy – we simply accep ha social inequali y seems o be mo e impo an and mo e gene al ques ion han i used o be, and I shall y o p esen Hunga ian indings on inequali y in ha wide con ex – wha e e i means “wide ”. Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 119 Hunga ian public opinion and policy na a i es look back pas decades, as a pe iod o pe manen g ow hs o inequali ies, mo e o less as “na u al consequence” o capi alis ansi ion. The inequali ies exp essed by di e ences o nominal incomes (no co ec ed by in la ion) illus a e and “con i m” ha pe cep ion.ii Figu e 1.: Nominal income g owh s o bo om and op decile and a e age income (HUF) Sou ce: Social Resea ch Ins i u e (TÁRKI): Household Moni o Repo , 2012 Howe e he abo e g aph seems o p o e he popula na a i es, i shows also ha inequali ies s a ed o g ow no a e he ansi ion, bu a he du ing he la e communism (ac ually om he la e ‘70s). Meanwhile, he cu es le us suspicious whe he he inequali y has been pe manen ly g owing. In ac , no, he ela i e a ios show wa y, and no pe manen ly widening cu es. 120 METSZETEK Vol.3. (2014) No.4 Figu e 2.: Rela i e income o bo om and op decile as a io o a e age income Sou ce: SRI (TÁRKI) op. ci . Syn he ic inequali y indica o s con i m he wa y cha ac e o inequali y changes. I we would o a oid he measu emen unce ain ies and una oidable mis akes o income igu es in bo om and op deciles, and we use he lowe b eaking poin o op and highe b eaking poin o bo om deciles (P90/P10), we gain he below g aph om Tá ki 2012 da a. Figu e 3. Sou ce: SRI (TÁRKI) Moni o , 2012 Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 121 O applying Gini-coe icien s ha e e o o e all dis ibu ion (and no only o he bo om and op en h): Figu e 4. Sou ce: SRI (TÁRKI) Moni o , 2012 Gi ing b ie his o ical and desc ip i e explana ion o he inequali y wa es illus a ed abo e, we may di e en ia e ou di e en ime-in e als. The i s pe iod is he ansi ional c isis ha s a ed du ing la e communism and ended a he beginning o 2000s. Inequali ies we e g owing pa ly by impo e ishmen and mass unemploymen , since 1,5 million jobs o o me socialis economy disappea ed by he collapse o Eas e n bloc, by es uc u ing and p i a izing o me s a e-owned indus ial and ag icul u al i ms, as a consequence o pos -indus ial ansi ion, and as con on ing o low compe i i eness accessing o open, globalized economic wo ld. Applying Ma xis language, same pe iod was he e a o “o iginal accumula ion o capi al”, he bi h o new Hunga ian bou geoisie ha aised inequali ies on he iche side, as well. The second pe iod s a ed in 2002, when socialis -libe al coali ion won he elec ion and socialis P ime Minis e opened a “new cou se” o so called “wel a e ansi ion” (indica ing ha a e he democ a ic and capi alis ma ke - ansi ion he e came he ime o ansi ion o wel a e owa d a mo e gene ous one gi ing mo e o he people). Tha policy supposed a booming GDP g ow hs igh a e he accession o EU – ha was an un ealis ic hope. Expanding wel a e expendi u es could be inanced om dep hs and de ici s – ha pa ly educed social inequali ies, bu also b ough o d ama ic sho ages he s a e budge s. 122 METSZETEK Vol.3. (2014) No.4 The hi d pe iod was e y sho . F om 2008 he socialis go e nmen almos “ga e up” he poli ical compe i ion o he 2010 elec ion, and hei only objec i e emained a p ope c ises-managemen ying o a oid a inal collapse o economy. Looking back o ha pe iod, i was a p ope ly success ul ea men o c ises in economic and social sense, as well: hey managed he s a e budge and did no cause as much social pains and ha dships, as i had been p edic ed be o e. The social inequali ies we e g owing – on a modes ange. On he o he hand, while go e nmen indeed a oided a majo imbalance occu ing, bu he de ici was s ill well abo e he Maas ich-le el and le he EU wi h no o he choice bu o con inue he EDP agains Hunga y; also, he ela i e balance was inanced by inc easing go e nmen dep , om o eign (mainly IMF) dep s. F om 2010 he new igh -wing (FIDESZ) go e nmen s a ed a new e a widely c i icized by hei au oc a ic use o poli ical powe , cu ing back he ules o law and “uno hodox” economic and iscal policies. F om ha ime he scisso s o inequali ies pe manen ly opened – ha we will analyze in de ail. Following e alua ion o Tá ki Household Moni o epo o 2012 we may summa ize he o e all pas decades’ ends o inequali ies as ollows: Table 1. Ra io o income s a a wi hin he popula ion (%): 1992 2000 2012 Rich (mo e han double o median income) 7 9 8 Uppe -middle s a a (120-200% o median) 25 25 27 Middle s a a (80-120% o median) 42 34 30 Lowe -middle s a a (50-80% o median) 20 23 21 Poo (less han he hal o median) 6 9 14 To al 100 100 100 Sou ce: SRI (TÁRKI) Moni o , 2012 We may obse e wo majo shi s, namely he in ensi e g ow hs o he poo , and he ema kable loss o he middle. Bo h shi s a e unusual om he iewpoin o “middle- classism” ha p og ess is ypical in de eloped coun ies. (E en i he ecession b oke ha “middle-classis ” endency in many coun ies and middle classes we e na owed du ing hose ha d imes. The Hunga ian special y is he wen y yea s con inui y in sh inking middle s a a.) Concen a ing on o pas yea s and ongoing de elopmen s he end has become c aggy and de ini e: inequali y has been s ongly g own. (Tá ki, Household Moni o , 2012) Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 123 Table 2. 2009 2012 Gini 27,2 29,3 P90/P10 3,53 3,87 P90/P50 1,81 1,84 P10/P50 0,51 0,46 Sou ce: SRI (TÁRKI) Moni o , 2012 Thus, he p o ile o income s uc u e behind he o e all g owing inequali y is e y special. Figu e 5.: A e age o al income o households in Eu os, calcula ed in PPP basis Sou ce: Eu os a , SILC, 2013 One special cha ac e is he alling income o he poo : s epping back o he i s g aph (Figu e 1), i is unique since con adic s o basic p inciple o jus ice by John Rawls ha he nominal income o he poo has allen in pas yea s. 124 METSZETEK Vol.3. (2014) No.4 Despi e o alling income o he poo he eal b eaking poin is no a he lowe income segmen s, i is a he a he op. In a pe iod when he a e age income inc eased, he income dis ibu ion has shi ed oughly in a simple manne : he loss o he lowe deciles became a gain o he iches . Figu e 6.: Real income change calcula ed on HUF basis 2009-2013 Sou ce: Eu os a SILC 2014 Compa ed o abo e wo g aphs i shows ha only he op deciles ealized a e age income g ow hs o he whole socie y; and, he gains on he op is much highe han he loss on he emedy o popula ion. Looking a pu e dis ibu ional e ec s du ing pas yea s we may obse e ha 9.-10. deciles ha e gained a g owing p opo ion om o al incomes, while 1.-8. deciles los om o al incomes. Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 125 Figu e 7.: Changes in% as gained o los sha es o deciles om o al income (2009 o2013) Sou ce: Eu os a SILC 2014. As we said ea lie , he poo es a e su e ed by bigges loss o income, bu also he lowe h ee qua e has expe ienced de ini e income declines. Sea ching causes why households ha e less money hey had had be o e, we should d aw he a en ions on o ollowing ac o s. Fi s , he go e nmen cu down he le els o wel a e bene i s, also he du a ion o unemploymen insu ance o 3 mon hs and es ic ed eligibili ies o disabili y pensions and bene i s ha educed he income o poo es , social ans e ecipien s. Second, while employmen a es emained, o sligh ly inc eased caused by he ex ension public wo k p og ams (employing people in e y poo condi ions o e y low wages) and he apidly g owing emig a ion and o eign job-placemen s – hese employmen -g owing endencies did no compensa e he loss o “s anda d- employmen ” in public p i a e sec o , and he ela i e highe wages ea ned in business en e p ises and open job-ma ke s. 126 METSZETEK Vol.3. (2014) No.4 Figu e 8.: Changes in open job ma ke employmen compa ed o 2008 3 d qua e Sou ce: Hunga ian Na ional Bank, Repo on Employmen , 2012 Thi d, he FIDESZ go e nmen in oduced and implemen ed la a e ax (and o he iscal policies, analyzed la e in ha pape ) educed undamen ally he e enues paid by he ich, and a he same ime, abolishing ax deduc ions o low wages ha pu hea ie ax bu den on o he poo e and middle s a a ha educed he ne income in hese segmen s. “Almos incomes” – impac s o consume c edi s o household incomes Inequali y li e a u e p obably unde es ima es he impac s o dep hs and c edi s on o social income s uc u e. Analyzes o en cha ac e ize ongoing ecession as “c edi - c ises”, o , a leas as oo ed in c edi c ises, bu analyzes ocus on o ansi ion o poli ical-economic sys ems and iscal implica ions, and less o social consequences. - 100 - 80 - 60 - 40 - 20 0 20 40 - 100 - 80 - 60 - 40 - 20 0 20 40 2005 2006 2007 2008 2009 2010 2011 2012 i ms employing less han 10 pe sons i ms employing mo e han 10 pe sons Changes in open job-ma ke employmen compa ed o 2008 3 d qua e Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 133 Figu e 15.: Change o e ail a ic and esiden ial consump ion by qua e yea s, in % Sou ce: HNB epo on GDP ends, 2012 Losses exp essed in kind make us suspec ha ends “in kind well being” o people migh be e en wo se han sh inking amoun s o incomes. As an indica o o in-kind well being we may p o i om EU dep i a ion da a, showing he a io o popula ion missing, being dep i ed om goods and se ices a e seen as s anda d and no mal needed p e equisi es o li e. Eu os a de ines ac o s o indica o s, as ollows:i “Based on he limi ed in o ma ion a ailable om he EU S a is ics on Income and Li ing Condi ions (EU-SILC) da a-se , he EU MD a e is cu en ly de ined as he p opo ion o people li ing in households who canno a o d a leas 3 o he ollowing 9 i ems: • coping wi h unexpec ed expenses; • one week annual holiday away om home; • a oiding a ea s (in mo gage o en , u ili y bills o hi e pu chase ins almen s); • a meal wi h mea , chicken, ish o ege a ian equi alen e e y second day; keeping he home adequa ely wa m; • a washing machine; • a colou TV; • a elephone; 134 METSZETEK Vol.3. (2014) No.4 • a pe sonal ca .” Simila ly, Eu os a de ines as “se e ely dep i ed” households hose who canno a o d 4, o mo e i ems o abo e lis . The Hunga ian igu es on a io o se e ely dep i ed popula ion show wo se si ua ion, han in he “old” membe s a es; bu he dynamics o declining li ing condi ion is much as e wo sening da a compa ed o bo h, “old” and “new” membe s a es. Figu e 16.: Ra io o se e ely dep i ed (4+ dep i a ion ac o s) popula ion Sou ce: Eu os a SILC 2014 Meanwhile, no only he a io o se e ely dep i ed household had g own, bu also he “deepness” o dep i a ion had wo sened a he same ime in Hunga y. Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 135 Figu e 17.: ,,Deepness” o dep i a ion – Eu os a , 2013 (a e age numbe o dep i a ion ac o s) Sou ce: Eu os a SILC, 2013, Hunga ian da a Dep i a ion is no iden ical wi h po e y wi h ega d o he ac ha no only he poo miss basic p e equisi es o “no mal li e”. O cou se, poo people and amilies a e su e ed mo e o en om sho ages in e e yday li e, bu o he s a a miss also ce ain goods and se ices ega ded as s anda d and no mal elemen s o consump ion. Also i is ue, ha dynamics o dep i a ion indica o s show mo e apid decline in case o lowe income-g oups, bu a io o dep i ed households has g own in e e y income le el. 136 METSZETEK Vol.3. (2014) No.4 Figu e 18.: Ra io o se e ely (4+) dep i ed wi hin in come quin iles, Hunga y Sou ce: Eu os a , SILC, 2013 I we wan o illus a e declining li ing s anda ds by less sophis ica ed igu es han dep i a ion and se e e dep i a ion index, we should ake a look on o da a p o ided by Gallup G oup in collabo a ion wi h OECD on how people a e us a ed o no o be able eeding p ope ly hei amily. As explana ion o below cha s we mus d aw he a en ion on o he subjec i e na u e o da a: da a do no show he p opo ion o popula ion expe iencing o li ing pe manen ly in hunge , da a shows he a io o hose epo ing ha dships o a o d app op ia e ood. Many and o en c i icize subjec i e well-being da a as showing unce ain eali ies beyond subjec i e pe cep ions, bu longi udinal da a p e en his u bulence, since basics o pe cep ion on wha is p ope and wha is no – do no change o e nigh . Following ha conce n, inc easing a io o hose who a e unable o a o d app op ia e meals – is a clea and alid indica o o declining li ing s anda ds. Also we should add ha de eloped coun ies ega d nu i ion as e iden ially ul illed need wi hin hei popula ion, inadequa e nu i ion is basically a ouble in he de eloping wo ld. Da a con on as wi h said eali y: a la ge, and apidly g owing s a a Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 137 o people su e ed by being incapable o insu ing app op ia e ood, wi h special ega ds o kids. Figu e 19.: Top 9 OECD coun ies wi h highes incidence o amilies s uggling o a o d oods 2013 Sou ce: Gallup epo in co-ope a ion wi h OECD (2014) In in e na ional compa ison we may obse e ha he as es and deepes decline o adequa ely eed amilies and child en can be obse ed – in Hunga y. Figu e 20.: Families wi h child en epo ing di icul ies a o ding oods, in OECD coun ies wi h la ges inc ease be ween 2007-2013 Sou ce: Gallup epo in co-ope a ion wi h OECD (2014) 138 METSZETEK Vol.3. (2014) No.4 Applying in-kind measu es o indica ing ends o li ing s anda ds, we may e alua e a wo se decline in Hunga y, han in mone a is indica o s. By o he wo ds, he “exchange a e om money o p oduc s and se ices” o sh inking income o Hunga ians has been also de alua ed du ing pas yea s. Changing cha ac e o e enue and ax policies would ound casual explana ions o abo e obse a ions. The la - a e income ax- e o m (by abolishing ea lie ax- deduc ions and ising e enues on low, and educing bu dens on high wages) dec eased he o e all di ec bu dens on wages and pe sonal incomes, and a ious consump ion- ela ed axes (e.g. li ing VAT o 27%) compensa ed sho ages o s a e budge . This means also o pay highe axes in g oss p ices and less ne coun e - alue o pu chased goods. Less income o lowe 80% o popula ion, makes pay e en less in e ms o consump ion and li ing s anda ds. Household sa ings and in es men s – he los secu i y Sa ings and in es men s a e no so exci ing issues o sociologis s dealing wi h social inequali y. I is a he a classical opic o economis s analyzing sa ings – wi h special ega ds o sa ings o households – as esou ce o in es men s, basically o company in es men s. Mone a is and banking se ices a e in e es ing issues as echnical ones: how e icien ly hey may implemen ha ade o , how e icien ly hey channel p i a e-indi idual sa ings o job-c ea ing and de elopmen -gea ing in es men s. Fo us household sa ings ha e di e en , p obably less sophis ica ed meanings. Roughly, i someone owns any o ms o sa ings o in es men s, he/she keeps in s o e some ese e ha may se e su i al in ha d imes; ha migh se e as s a up capi al, i some hing mus be changed, some hing new mus s a . In con as , ha ing no ese e means ha ing no choice, no change and no powe o change – show mus go on, how i goes. Below igu es will illus a e how Hunga ians los hei p e ious sa ings ha e e used o be smalle in in e na ional compa isons – bu o us ha means also a p ocess o losing secu i y and eedom, as well. Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 139 Figu e 21.: G oss household sa ing a es (as % o household incomes) 2003- 2012 Sou ce: Eu os a , 2013. Gene ally speaking, he o e all alue o households’ inancial asse s had g own un il 2009, and a e 2010, hey ha e allen back o he le el o 2006. Figu e 22.: Fiancial asse s o households, in USD, Hunga y Sou ce: OECD S a is ics, 2013 140 METSZETEK Vol.3. (2014) No.4 Looking a he majo ac o s o asse s, in es men s and li e insu ance ese es s agna ed wi h mino inc ease, loans allen as illus a ed abo e, and also pension und equi ies allen d ama ically, since he go e nmen abolished p i a ely managed manda o y unded pension schemes by con e ing equi ies o eligibili y in pay-as-you- go pension sys em. Figu e 23.: T ends o di e en inancials asse s in USD, Hunga y Sou ce: OECD S a is ics, 2013 The o e all a io o households’ in es men s is almos he hal o same a io in Eu o e a, and he end o changes is sligh ly posi i e in ime, despi e o he c ises. As we men ioned ea lie , go e nmen p og ams like “exchange a e embankmen ” and, “subsidized paymen o ull” gene a ed ade-o s be ween sa ings-in es men s and loans, bu abo e u bulences caused by go e nmen egula ions he ends o declines a e explici . Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 141 Figu e 24.: Sa ing and in es men s a es o households, Hunga y Sou ce: Eu os a , 2013 O e all a es do no in o m on alloca ion and dis ibu ion o sh inking household sa ings and in es men s. The only accessible help o know mo e on ha is he ela i e small-simple, bu ep esen a i e su ey made un by G k L d. By ou assump ion G k da a canno seen as punc ual, pa ly because 40% o su ey-in e iewed pe sons did no answe a all abou hei sa ings, pa ly because sel - epo ed da a on weal h a e e en mo e unce ain han income da a. Meanwhile, cleaned da a (wi hou non-answe s and la e no sa ings) seem o be accu a e in a sense ha hey co ela e s ongly wi h da a om ex e nal sou ces on same opic. The loss o sa ings oo ed basically in loss o sa e s. Since less people ha e sa ings, pa allel ewe people conside making pay o main ain hei clien - ela ion wi h banks. Ra io o sa e s and bank-clien s we e all he ime smalle han in e na ional s anda ds, bo h a io allen du ing he c isis e en deepe om ha ela i e low baseline, as well. i 142 METSZETEK Vol.3. (2014) No.4 Figu e 25. Ra io o hose owning sa ings and being bank clien s wi hin 16-64 popula ion 0 5 10 15 20 25 30 35 2008 2009 2010 2011 2012 2013 Owns sa ings Bank clien s Sou ce: G k L d, 2013 ( a io o pe sons epo ed hey own sa ings among hose we e answe ed o ele an ques ion o inqui y, in he ep esen a i e su ey o RBM esea ch p og am) The loss o sa e s a e p opo ional in all o he coho s, meaning also ha olde gene a ion’s eadiness and ad an age o sa e emained p opo ional in lowe le els, oo. In absolu e e ms, his means also a weakening ma e ial secu i y o younge gene a ions. Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 149 Figu e 32.: Social spending inc eased leas in coun ies mos a ec ed by he c isis (pe cen age changes in eal public social spending and eal GDP, 2007/08 o 2012/13) No e: Es ima es o 2007-08 and 2012-13 a e a e aged o e wo-yea pe iods o allow o he di e en yea s in which he c isis began ac oss coun ies and o limi he e ec o yea -on-yea luc ua ions. Sou ce: OECD (2013), OECD Social Expendi u e Da abase (SOCX), p elimina y da a (www.oecd.o g/social/expendi u e.h m). 150 METSZETEK Vol.3. (2014) No.4 Rega dless G eece (expe iencing an ex eme GDP loss), Hunga y is he only excep ion by no inc easing (de ini ely educing) social expendi u es du ing he c ises. Tha canno be explained by ex a high a io o wel a e expendi u es (Hunga ian a io o GDP is on he middle ank in EU), and also he a io o ecession does no explain, why he Hunga ian go e nmen did no wan o ease he ha dships o lowe s a a by s eng hening wel a e schemes, and why we can obse e a solidly sh inking social expendi u es. In ac , go e nmen cu back he amoun o social bene i s by mo e han 25%, sho ened he du a ion o unemploymen insu ance o 3 mon hs ( om 9 mon hs), cu back d ama ically disabili y pensions and bene i s – ha esul ed a de ini e loss o income o wel a e ecipien s. Meanwhile, i we alk how go e nmen made ac i ely social inequali ies g ow, he majo impac is no how he poo became poo e , bu a he how go e nmen bene i ed he ich o be iche . In 2013 S a e Audi O ice published a epo (Tó h G. Cs. – Vi o ácz, P. 2013) on i s’ websi e, analyzing he impac s o iscal p og ams implemen ed by he go e nmen om 2010 o 2013, applying mic o-simula ion me hods on adminis a i e ( ax- epo s) da a. By ha epo , he income axes paid by di e en income deciles we e as ollows: Figu e 33.: A e age income ax paid by income deciles ( housands HUF), Hunga y Sou ce: Tó h G. Cs. – Vi o ácz P. op. ci . mic o-simula ions on SAO da a, 2013 Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 151 The di e ence be ween axes paid in 2013 compa ed o 2010 (p esen ed in he abo e cha ) shows ex eme gap be ween lowe 7 deciles o which ax bu dens we e g owing, and he op 3 deciles, especially he op (10.) deciles, whe e axes we e educed o less han hal . Figu e 34.: Di e ence o a e age income ax paid by income deciles ( housands HUF), 2013-2010 Sou ce: Tó h G. Cs. – Vi o ácz P. op. ci . mic o-simula ions on SAO da a, 2013 Go e nmen he o ic a gued ax e o ms by p o-na alis objec i es gi ing incen i es o be e -o , wo king “middle-class” ia amily- ela ed ax-deduc ion schemes – eplacing and con e ing pa ly he uni e sal amily-allowance scheme. No e lec ing o he policies and ealis ic p ojec ions how s a es may “buy” child en om middle s a a by ax elie s (no e idence on ha would esul posi i e shi s in e ili y a es…), da a show ha na alis impac is mino , almos symbolic, compa ed o widened gaps be ween poo and ich. 152 METSZETEK Vol.3. (2014) No.4 Figu e 35.: Di e ence in income axes (HUF) paid in 2013 o 2010, by deciles and di e en ypes o amilies Sou ce: Tó h G. Cs. – Vi o ácz P. op. ci . mic o-simula ions on SAO da a, 2013 Summing up we conclude ha di e en sou ces, su ey and adminis a i e da a a e con e ging and co ela e s ongly abou he p o ile o widening gaps in li ing s anda ds, also we demons a ed he e y special na u e o Hunga ian gen e by g owing inequali ies is, ha no he ma ke s, no he c ises – bu he go e nmen and iscal policies aised inequali ies in income and ma e ial well-being. Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 153 Conclusion Income dis ibu ions become globally mo e unequal in 2000s, especially du ing he “g ea ecession” almos e e ywhe e on he Ea h. Social sciences, especially a ec ed by Th. Picke y’s popula concep s exe ed in his book explain global ends o opening income-scisso s by s ong concen a ion o weal h and capi al incomes o he iches . In con as o global ends he g owing income-inequali ies in Hunga y canno be explained by capi al-concen a ion, o , he impac s o economic c ises. As we demons a ed abo e, g owing income-inequali ies, and o e all weakening ma e ial insecu i y o Hunga ian popula ion can be seen a he as a consequence o go e nmen iscal policies. I is unique – a leas in Eu ope – ha go e nmen dec eased social expendi u es du ing he c ises, and e en mo e unique ha bene icia ies o iscal e o ms a e exclusi ely he op income-s a a o socie y. While mean income o o al popula ion inc eased – jus only he op decile ealized g owing incomes, and he income posi ion o he “ es ”, he 1-8 income deciles los om hei income posi ion, mainly as an e ec o go e nmen iscal, e enue and edis ibu i e policies. Re e ences C ouch, C. (2009): P i a ised Keynesianism: An Unacknowledged Policy Regime. The B i ish Jou nal o Poli ics and In e na ional Rela ions. VOL 11, 382–399. K ugman, P. (2012): End This Dep ession Now! W. W. No on and Company Magya , B. (ed.) (2013): A Magya Polip – A osz kommunis a ma ia-állam (The Hunga ian Oc opus – The Pos -Communis Ma ia-S a e), No an Lib i, Budapes Picke , K. – Wilkinson, R. (2009): The Spi i Le el: Why G ea e Equali y Makes Socie ies, Bloomsbu y P ess Pike y: Th (2014): Capi al in he Twen y-Fi s Cen u y, 2013, Édi ions du Seuil, Ha a d Uni e si y P ess P asad, M. 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