Economic Inequality

How To Solve America’s $100 Trillion Problem Of Wealth Inequality

A recent study by the Federal Reserve reveals the shocking extent of accelerating wealth inequality in America. Out of America’s total assets of $114 trillion owned by Americans in 2018, the wealthiest 10% of Americans owned 70% (up from 61% in 1989), while the bottom 50% of American households had virtually no net worth at all—down from

Pay Gap Is Only the Start of Financial Inequality for Women

More than half (56%) of working American women are stressed about their personal finances, compared to only 41% of men, according to a new study conducted by financial wellness solutions provider Salary Finance. The survey of 10,486 U.S. employees revealed that women struggle more than men in almost every area of their financial wellness – from

Global warming may boost economic inequality

Over the past half-century, climate change has been blamed for heat waves, flooding, and rising seas. Now, researchers say warmer temperatures are widening the chasm separating richer and poorer countries, effectively boosting the economies of many wealthy polluters while dampening growth in much of the developing world. As a result, inequality between the haves and

High Income Inequality Hurts Social Security’s Finances

Social Security’s trustees released their annual report this week. The program faces a manageable long-term financial shortfall after 2035, after which it can still pay 77% of promised benefits if nothing changes. Importantly, part of this shortfall is due to the growth and persistence of massive income inequality that have been a hallmark of the U.S. economy for much

Housing inequality mirrors income inequality, says study

It’s generally understood that rising housing costs, and a shortage of new units, have contributed to an affordable housing crisis in the United States. New research by economists at Apartment List have found that inequality has also been rising, with those struggling to afford rent tending to pay a much greater share of their income than wealthier Americans. Overall,

Public Tax Returns? No, Just Those of the Well-Off

Senator and presidential candidate Bernie Sanders's reluctance to make his income-tax returns public recently caused a minor fracas within the Democratic Party. Eventually, he capitulated, and the world discovered that Sanders makes about a half-million dollars a year. This revelation is unlikely to cost Sanders support among voters -- after all, Sanders’s policies would raise taxes

Inequality Will Eventually Hurt the Rich, Too

Income inequality is harming the economy. Most people spend whatever extra money they earn. The rich, however, are disproportionately likely to save any additional income, which means that income concentration saps consumer demand and threatens the viability of new investments—just as in the 1920s and 1930s. We used to know this. Marriner Eccles, the former

Is education the keys to the kingdom?

In New York City, home to our nation’s financial markets, a staggering 74 percent of its students are considered economically disadvantaged. They are parallel worlds, a few miles apart and largely invisible to one another. This is an increasing challenge across our country: How do we build a path to economic mobility for more of

Income Inequality in America: Growth and Statistics

Should you have more money? For decades America has gotten richer and individual workers have gotten more productive. We work longer hours, produce more per hour and raise stock prices to once-unimaginable levels… and almost no one has gotten a meaningful raise since the Carter administration. Income equality has a lot to do with that. What

Has income stalled for the bottom 90% since the 1970s

During an interview on Vox.com co-founder Ezra Klein’s podcast, Democratic presidential candidate Pete Buttigieg highlighted growing inequality in the United States. In response to a question from Klein about the the conservative era ushered in by President Ronald Reagan, Buttigieg said the governmental approach at the time "had a lot do fo with the removal of

The problem with college admissions: a system that perpetuates economic inequality

The recent college admissions scandal, which continues to captivate the nation’s attention, has laid bare the issues that have festered at the heart of college admissions for many years. The government’s indictment of parents who illegally manipulated their children’s applications makes clear how wealthy parents obsess on the prestige of certain colleges. It appears that implicated

How the 1 Percent Is Pulling America’s Cities and Regions Apart

The two gravest challenges facing America today, economic inequality and geographic divides, are increasingly intertwined. Economic inequality has surged with nearly all the growth being captured by the 1 percent, and the economic fortunes of coastal superstar cities and the rest of the nation have dramatically diverged. These two trends are fundamental to a new study by

Income inequality is growing fast in China and making it look more like the US

Between 1978 and 2015, China moved from a poor, underdeveloped country to the world’s leading emerging economy. Despite the decline in its share of world population, China’s share of world GDP increased from less than 3 per cent in 1978 to about 20 per cent by 2015 (see Figure 1). According to official statistics, real

Amazon: Income Inequality Worsens

The web giant, Amazon, which is the one of the largest private employers in the US with about 566,000 employees, and which doubled its profit to $11.2 billion in 2018 from $5.6 billion in 2017, paid zero tax in US federal taxes in 2017 and 2018 and redesigned its corporate structure so it could do

Want to visualize inequality? View cities from above

FROM THE AIR, drone photography exposes the economic divide within cities. Roads, canals, and fences become barriers that split the land separating the rich and poor. Stark images from Johnny Miller’s series “Unequal Scenes” highlight the uneven development of cities. Makeshift shacks butt against developments in Mumbai. Lots sit empty in Detroit while an adjoining neighborhood

Why Can’t We Close the Racial Wealth Gap?

If the college cheating scandal has reinforced anything, it’s that one of the primary advantages of being wealthy is that the wealthy can buy more advantages. This helps explain why African Americans, who’ve historically been denied wealth, lag in almost every category of society behind whites, who have long benefited from capital extracted from black labor and culture.

Income Inequality Or Spending Inequality, Which Tells Us More?

When it comes to the gap between the world’s rich and poor nations income inequality doesn’t quite capture the enormity of the problem. Looking at what people spend rather than what they make does more to show why the gap between the rich and the poor is likely to remain a wide one for a