OECD data demonstrate income inequality and support Occupy

When I first read about the Occupy movement I focused primarily on the US situation. I came to understand that indeed in the US, the income inequality is quite considerable, so I could really see where the objections of Occupy Wall Street, and the use of 99% (for the masses) and 1% (for the wealthy) were coming from.

But here in the Netherlands and in Europa, I figured, it would not be the same. We have more social insurances and social support and income inequality is dealt with differently. At least, so I thought, until I came across the OECD report: An Overview of Growing Income, Inequalities in OECD Countries. And I'll put the two foremost important graphs down here, for a quick snapshot.

The first image shows the gradual liberalisation of the markets in the OECD-countries. And it is followed by an outline of the increase (!) in income inequality in that same time-frame.

Of course the OECD goes at length to describe how this mechanism has worked. But if I were to summarize it, I would say: with the liberalization of markets, capital can flow more freely than labour. Thus, those who only have labour to sell, cannot find their optimum earning capacity (due to a restraint in terms of travel etc.) while those who have capital can. And therefore the liberalisation of capital markets (without a similar liberalization of labour markets) will go hand in hand with an increase in income inquality.

And as the neoliberal dogma is indeed the dominant frame of reference in our western societies, it is fair to say that the OECD data prove the Occupy movement to be right in their objection to unlimited capital flows and in their desire to compensate the income inequelity effects of these flows by means of other political measures.