Wednesday, May 29, 2013

Inequality - Facts of the Day

The lead research economist at the World Bank, Branko Milanovic, has found that the top 8% of global earners are drawing 50% of all of this planet's income. Wealth-inequality is always far higher than income-inequality, and therefore a reasonable estimate of personal wealth throughout the world would probably be somewhere on the order of the wealthiest 1% of people owning roughly half of all personal assets.

Milanovich says: "Among the global top 1 per cent, we find the richest 12 per cent of Americans, ... and between 3 and 6 per cent of the richest Britons, Japanese, Germans and French. It is a 'club' that is still overwhelmingly composed of the 'old rich'," who pass on to their children...”

Milanovic finds that globally, "The top 1 per cent has seen its real income rise by more than 60 per cent over those two decades [1988-2008]," while "the poorest 5 per cent" have received incomes which "have remained the same" - the desperately poor are simply remaining desperately poor.

The World Bank's list of "GDP per capita (current US$)" shows that in 2011 this annual-income figure ranged from $231 in Democratic Republic of Congo at the Equator, to $171,465 in Monaco within Europe. The second-poorest and second-richest countries respectively were $271 in Burundi at the Equator, and $114,232 in Luxembourg within Europe. For comparisons, the U.S. was $48,112, and China was $5,445. Those few examples indicate how widely per-capita income ranges between nations.

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