Let's start our simple lessons of economics! (I hope it will be permanent topic in my blog).
Some days ago I found an interesting picture searching the internet. Look at it.
Despite of the data is not so fresh, it shows the right and incredible trend. In simple words it says "Rich gets richer and poor gets poorer". As we can see, during 30 years after 2WW technological progress and development of institushions (such as education and government regulation) reduced income inequality in USA: it helped low-income households (90% of households) increase wealth as their avarage income grew by 83%.
But since the end of 80-ties lowest income groups (90% of households) had the raise of avarage income just about 10% in 30 years, while the raise of income of richest group (10% of households) was more than 3 times!
Moreover such tendention is in progress. See the Oxfam (a leading poverty-fighting organization) forecast for global wealth in split. The percentage of global wealth owned by the top 1% already surpassed 50% as of 2016!
According to Oxfam, eight men own as much wealth as the 3.6 billion people who make up the poorest in the world, and one in ten people survive on less than $2 per day. (https://www.investopedia.com).
What are the reasons? First of all: rich people have wide opportinities of investment. Big amounts of money let their owners get big amounts of gains. And of course, money often is connected with authotity ang government regulation...
However, all contries are different and the rate of enequity is different too. Let's continue finding out interesting economic facts! With me and my blog :)
Do you like such a format of posts? Are you interested in economics? What do you think about global enequity?