income inequality

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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,

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

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 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

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

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

U.N. Rights Chief Warns Of Threats From Inequality

Income inequality and disparities in access to resources are factors that pose serious threats to human rights across the globe and have already sparked violent protests in some countries, a top United Nations official said Wednesday. Speaking in Geneva, U.N. High Commissioner for Human Rights Michelle Bachelet referred to recent protests in Sudan, Haiti and

2019-03-09T14:59:35-05:00Tags: |

Why cities aren’t working for the working class

MIT economist David Autor made news in January, when he delivered the prestigious Richard T. Ely Lecture at the annual meeting of the American Economic Association and presented an attention-grabbing finding about the U.S. economy. Cities no longer provide an abundance of middle-skill jobs for workers without college degrees, he announced, based on his own

2019-02-25T02:43:32-05:00Tags: |

Income inequality is rising so fast our data can’t keep up

Wages at the top of the income distribution continue to rise much more rapidly than wages for everyone else, according to an analysis of the latest federal data by the Economic Policy Institute, a progressive think tank. But the data are just as notable for what they don’t say, according to the report by EPI economist Elise Gould.

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

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

Employee Stock Ownership Plans: Can They Close the Wealth Gap?

Much has been written about the growing trend of income inequality in the US; we hear less often about the wealth divide, which is even more stark. While the top 10 percent of US households today own 51 percent of the country’s wealth, the bottom 50 percent own one percent. With no savings to fall back on, families

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

Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Representing a tangible way to reward those who have

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, Again  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

A better way to share the wealth

Many Washington conversations about inequality focus on income. The amount of money that American workers and families make is indeed important for their economic security—on average, wages and salaries account for nearly 80% of income for U.S. households. The income inequality and wage stagnation that have persisted for decades certainly pose threats to the health of