Income inequality around the world has worsened over the past several decades, “with the wealthiest 1% of the world's population capturing twice as much income growth as the bottom half,” the Associated Press notes, citing a new report.
“The World Inequality Report shows that income gaps soared after 1980, though they leveled off after the 2008 financial crisis. The richest 1% of the world’s population saw its share of global income slip from about 22% in 2008 to just above 20% in 2016. The share of global income going to the bottom 50% rose slightly in the same period, to just under 10%, propelled by gains in populous and fast-growing China and India,” AP says.
“The new report argues that countries can reduce inequality through more progressive taxation and by subsidizing education. It points out that the United States and Western Europe had similar levels of inequality in 1980, with the top 1% holding about 10% of income. But by 2016, the top 1% in Europe held 12% of income, compared with a 20% cut in the US”
Inequality may have been rising in the United States. But Americans, at least compared with their rich country peers, don’t appear too troubled by that, The Economist notes.
Why? “One reason may be that Americans don’t realize how unequal incomes are. In common with the inhabitants of other wealthy countries, most Americans believe there is too much inequality. But they underestimate just how much of it there is. The average American puts the current ratio of CEO to unskilled worker pay at thirty-to-one; their preference is for about seven-to-one. But the actual CEO-unskilled wage ratio in America is 354 to one.”
Back to Culture
“The World Inequality Report shows that income gaps soared after 1980, though they leveled off after the 2008 financial crisis. The richest 1% of the world’s population saw its share of global income slip from about 22% in 2008 to just above 20% in 2016. The share of global income going to the bottom 50% rose slightly in the same period, to just under 10%, propelled by gains in populous and fast-growing China and India,” AP says.
“The new report argues that countries can reduce inequality through more progressive taxation and by subsidizing education. It points out that the United States and Western Europe had similar levels of inequality in 1980, with the top 1% holding about 10% of income. But by 2016, the top 1% in Europe held 12% of income, compared with a 20% cut in the US”
Inequality may have been rising in the United States. But Americans, at least compared with their rich country peers, don’t appear too troubled by that, The Economist notes.
Why? “One reason may be that Americans don’t realize how unequal incomes are. In common with the inhabitants of other wealthy countries, most Americans believe there is too much inequality. But they underestimate just how much of it there is. The average American puts the current ratio of CEO to unskilled worker pay at thirty-to-one; their preference is for about seven-to-one. But the actual CEO-unskilled wage ratio in America is 354 to one.”
Back to Culture
No comments:
Post a Comment