Economic Inequality

Here’s How Much America’s Rising Income Inequality Is Costing Social Security

Just a few weeks into the 116th Congress, Democrats’ takeover of the House of Representatives has already exposed the huge gulf between what American voters want and what the previous House leadership and the Trump administration have thrust upon them in recent years. Congressional Democrats’ bold agenda—such as higher taxes on the rich, universal health care, and expanding Social Security—has

Income inequality: firms have been reducing profit-sharing with workers

Stagnating real wages and falling labour shares across developed economies have stimulated a renewed interest in the question of how, and to what extent, rents are shared with labour. Nicholas Kaldor’s (1957) long-held stylised fact that the fraction of national income going to labour is fixed has been questioned, for instance, by Karabarbounis and Neiman (2014), who show

Why income inequality is bad for the climate

In recent decades, income inequality has increased in almost all OECD countries. The average income of the richest 10% of the population today is about nine times as high as the average income of the poorest 10%. Twenty-five years ago, it was seven times as high. While overall prosperity has increased in recent decades, growth

How the 1% profit off of racial economic inequality

An economy that’s rigged to benefit the richest 1% has left most of America behind. While wages for workers have remained flat for decades, expenses for healthcare, housing, and most basic needs have risen. Alongside record concentrations of income and wealth at the top, America’s racial wealth divide has persisted – or worsened. As people

Can worker participation on corporate boards fight income inequality?

The issue of income inequality is front and center in the American conversation. A recent poll showed 66 percent of Americans agree that money and wealth should be more evenly distributed in the United States. Instead, the rich are getting richer and wealth gap is increasing. As the run-up to the 2020 election begins, there is one

The UK’s poverty rate is around average for the EU

This viral tweet from the Spectator Index (which is in no way linked to the Spectator magazine) ranks the poverty rate of a number of different countries in Europe. But it’s incorrect to suggest that the UK’s poverty rate is higher than other European countries like Spain, Greece, and Italy as the tweet does. That’s

2019-01-10T07:41:30+00:00Tags: |

Touching lives with sustainable banking

World Bank data indicates that global poverty rate is declining. But in sub-Saharan Africa, the number of those living in extreme poverty keeps rising. The Nigerian Sustainability Business Principles (NSBP), which was established to reverse the trend and bring better life to Africans, has brought stakeholders in the financial sector together to enhance economic growth

2019-01-01T06:57:44+00:00Tags: |

City Governments Should Focus On Opportunity, Not Income Inequality

The common belief today is that income inequality has exploded—the rich are getting richer while the incomes of the middle class and poor stagnate. But a new study from the Urban Institute reviews several studies on income inequality and finds that this perception is not accurate. Unfortunately, earlier incomplete studies have influenced several state and local governments,

Income Inequality Has Soared The Most In These 101 U.S. Cities

Income inequality is a worsening issue in the United States in recent decades. As several experts have pointed out, including  Professor Robert J. Gordon, author of "The Rise and Fall of American Growth," income inequality has substantially increased since the mid-1970s. Over the course of the 2000s, the level of inequality accelerated, and recently the Economic

The Roots of Economic Inequality

The United States is divided by wealth and social class, and the gap is widening. In 1980, according to the World Inequality Report, the richest 10% of the population held just under 35% of national income; by 2016, that share had risen to around 47%. As wealth disparities have widened, so have differences in outcomes.

After The Fall: Income Inequality and the Great Recession

If there’s any point of agreement amongst the many ten-year anniversary eulogies of the 2008 recession, it is that at some point the crisis ended. The nearly nine million jobs that were lost in the crisis are just as cemented in the history as the most popular phone at the time — the Motorola RAZR. Disagreements remain on the

Some People Hate Income Inequality So Much They Pretend It Doesn’t Exist

Twitter can highlight some interesting intellectual chiaroscuro. Left-leaning think-tank Center for Economic and Policy Research posted this today: Robert Samuelson Is Denying Inequality, Againhttp://dlvr.it/Qrc1MW  Samuelson was dancing around whether incomes had actually risen or not. CEPR made some good points, but I think missed the most fundamental ones. First, to Samuelson, who wrote about the

This is what poverty looks like in the US right now

Though poverty has slightly declined in recent years, the US Census Bureau found last year that nearly 40 million people are living in poverty in America. Poverty affects almost every area of life for Americans in every state and city across genders, ages, employment, and education. See the different ways poverty affects Americans across the nation. Click

Bernie Sanders And Tucker Carlson Agree On Income Inequality. Why Can’t Democrats And Republicans?

I've never watched Tucker Carlson's program on Fox but am aware of his reputation. Profiles of him in major media have tended to have one slant. Coming across a one in the American Conservative by Alan Pell Crawford, I gave a read and found a surprising passage: This raises a question: Can you be a conservative if

More than money: Counting poverty in multiple forms

Consider two households that have the same level of consumption (or income) per person but they differ in the following ways. All the children in the first household go to school, while the children in the second household work to support the family. The first household obtains drinking water from a tap connected to the

Business And The Mission To Really Make Poverty History

There are still around 783 million people around the world living in extreme poverty. That's the level of poverty where families have to survive on less than $2 per day, where healthcare is an unaffordable luxury, and simply scratching together enough food to survive is a daily challenge. It's the level of poverty where, should

The world’s paying too high a price for inequality …

Joseph Stiglitz at Columbia University reminded us in the Scientific American this month that just three Americans – Jeff Bezos, Bill Gates and Warren Buffett – account for more wealth than the entire poor half of the US population. As I watched the six pallbearers bringing Walter Kwok Ping-sheung’s coffin out of St John’s Cathedral last Thursday,

The Richest 10% of Americans Now Own 84% of All Stocks

The stock market continues to be one of President Donald Trump’s favorite indicators of the country’s health as stocks continue to hit all-time highs. But a shrinking share of Americans are getting rich off the market’s dizzying rise, according to a new analysis. The top 10% of American households, as defined by total wealth, now

Racial and economic disparities intertwined, study finds

By many measures, the U.S. has made important strides when it comes to civil rights: The racial gaps in educational achievement, life expectancy, and wages, though still considerable, have all narrowed measurably in the past 50 years. Yet in one marker of fundamental importance—family income—disparities between black and white have remained virtually unchanged since 1968.

The simple way that men can help close the wealth gap

The US is on a cusp of a major demographic shift. By 2060, there will be 13.9 million people over the age of 60 living in the country; the most dramatic increase in elderly adults will occur in people of color. And as of today, we don’t have enough people to care for them. “Care needs