Global income inequality: How big is gap between richest and ...

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And, when it comes to wealth (valuable assets and items over and above income), the gap is even wider. The poorest half of the global population ... GlobalAgenda Inequality SDG10:ReducedInequalities Thesechartsshowthegrowingincomeinequalitybetweentheworld'srichestandpoorest Incomeinequalitygapremainssignificantbothbetweenandwithincountries. Image:REUTERS/JessicaRinaldi/FilePhoto 10Dec2021 JoeMyers Writer,FormativeContent UpLink-TakeActionfortheSDGs TakeactiononUpLink Explorecontext Inequality Explorethelateststrategictrends,researchandanalysis ThelatestWorldInequalityReporthighlightstheextentofwealthandincomeinequalitiesbetweenandwithincountries. TheCOVID-19pandemichasexacerbatedmanyexistinginequalities. Politicalactionisnecessarytotackleincomeinequality,thereport'sauthorsargue. AnewreporthasshownthattheCOVID-19pandemichasexacerbatedexistinginequalities. TheWorldInequalityReport,producedbytheWorldInequalityLab,foundthatwealthandincomeinequalityremainpronouncedacrosstheglobe. “TheCOVIDcrisishasexacerbatedinequalitiesbetweentheverywealthyandtherestofthepopulation.Yet,inrichcountries,governmentinterventionpreventedamassiveriseinpoverty,thiswasnotthecaseinpoorcountries.Thisshowstheimportanceofsocialstatesinthefightagainstpoverty.”,explainsLucasChancel,leadauthorofthereport. Haveyouread? HowhasCOVID-19impactedworldpoverty? Toaddressinequalitiesweneedanewvisionfortrade ChristineLagardeonhowtoaddressCOVID-19,climatechangeandinequality Incomeandwealthinequalitiessignificant Thereporthighlightstheextentofglobalincomeandwealthinequalities.Atagloballeveltheaverageincomeforanadultis$23,380(whenadjustedforPurchasingPowerParityorPPP). However,thereport'sauthorsexplainthatthisconcealswidedisparitiesbetweenandwithincountries.Therichest10%oftheglobalpopulationcurrentlytakehome52%oftheincome.Thepooresthalfoftheglobalpopulation?Welltheyearnjust8%. Onaverage,anindividualfromthetop10%willearn$122,100,butanindividualfromthebottomhalfwillearnjust$3,920. And,whenitcomestowealth(valuableassetsanditemsoverandaboveincome),thegapisevenwider.Thepooresthalfoftheglobalpopulationownsjust2%oftheglobaltotal,whiletherichest10%own76%ofallwealth. Incomeandwealthinequalityin2021. Image:WorldInequalityReport But,thereport'sauthorsalsoremindusthatsignificantinequalitycanexistwithincountries."Nationalaverageincomelevelsarepoorpredictorsofinequality,"theyexplain.High-incomecountriescanbeunequal,ascanlow-andmiddle-incomecountries. Indeed,whileoverthelasttwodecadesglobalinequalitiesbetweencountrieshavedeclined,incomeinequalityhasincreasedwithinmostcountries.Theaverageincomegapbetweenthetop10%andbottom50%ofindividualswithincountrieshasalmostdoubledacrossthattimeperiod,thereportfound. Thechangingshapeofglobalincomeinequality. Image:WorldInequalityReport TheimpactoftheCOVID-19pandemiconincomeinequality 2020markedthesteepestincreaseintheglobalbillionaires'shareofwealthonrecord,thereportfound.Indeed,since1995,theshareofglobalwealthownedbybillionaires'hasrisenfrom1%toover3%. Asthechartbelowexplains,theworld'srichesthavecapturedadisproportionateshareofglobalwealthoverrecentdecades. Thegrowthinwealth. Image:WorldInequalityReport Tacklingincomeinequality Addressingthechallengesofthe21stCentury,willnotbe'feasiblewithoutsignificantredistributionofwealth&incomeinequality',thereport'sauthorsargue. Thereportexploresvariousoptions-mainlyrootedintaxationpolicies-totackleincome&wealthinequality.Theexamplesofferlessonsfromacrosstheglobeandthroughoutrecenthistory,theyexplain,andconcludethat"inequalityisalwayspoliticalchoiceandlearningfrompoliciesimplementedinothercountriesoratotherpointsoftimeiscriticaltodesignfairerdevelopmentpathways." Share LicenseandRepublishing Writtenby JoeMyers,Writer,FormativeContent TheviewsexpressedinthisarticlearethoseoftheauthoraloneandnottheWorldEconomicForum. UpLink-TakeActionfortheSDGs TakeactiononUpLink Explorecontext Inequality Explorethelateststrategictrends,researchandanalysis Subscribeforupdates Aweeklyupdateofwhat’sontheGlobalAgenda Moreon Inequality Viewall HowWeb3willleveltheplayingfieldandunlockincomeequalityAmidotherinequalities,accesstotheinternetisstillrelativelyuniversal,andWeb3presentsagreateconomiccorrectionopportunityforfutureusers.DanteDisparte25May2022 UKinflationhitshighestlevelonrecord:TopeconomicsstoriestoreadthisweekTopeconomystories:just8%ofinsurers'preparingadequately'forclimatechange;UKinflationhitshighestlevelonrecord;WorldBanktomake$30billionavailabletotacklefoodsecu...JoeMyers19May2022 GDP:Whatisitandwhydoesitmatter?VictoriaMasterson19May2022 Themotherhoodpenalty:HowchildcareandpaternityleavecanreducethegenderpaygapKateWhiting19May2022 Davos2022:Who'scomingandeverythingelseyouneedtoknowGayleMarkovitzandBeatriceDiCaro18May2022 WhatisaConsumerPriceIndexandwhyisitimportant?VictoriaMasterson17May2022



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