Economic Inequality

US government failing millions by paying below $15 an hour, study finds

The federal government employs more workers making less than $15 an hour than any other employer in the US, a new report has revealed. The study, compiled by pro-union group Good Jobs Nation, analyzed federal data and showed that the government spends more than $1.6tn on federal contractors employing more than 12.5 million people with

Retirement incomes will become more unequal, study finds

If income inequality continues to grow, so too will the gap between wealthy and struggling retirees. That's the takeaway from a new report by the Urban Institute, a progressive think tank in Washington, D.C., and funded by the Department of Labor, which analyzed how rising inequality will shape the landscape of American retirement. "People have this perception

How Apple And Beyoncé Show That Extreme Inequality Is Everywhere

We got a reminder this week of how unequal the business world is: Apple became the first company to reach $1 trillion in market value. Four more tech companies are right behind it – the MAGAs. At the reverse side of this coin, many small, non-tech companies are going bust, and people working for them lose their

We Wanted Safer Banks. We Got More Inequality.

A few years ago, one of Karen Petrou’s banking clients gave her an unusual assignment: It wanted her to write a paper laying out “the unintended consequences of the post-financial-crisis capital framework.” Petrou is the co-founder of Federal Financial Analytics Inc., a financial services consulting firm in Washington that focuses on public policy and regulatory

Where Financial Inequality Is Rampant (Infographic)

A recent OECD paper made the point that there is now widespread recognition that GDP measures or GDP per capita are insufficient when it comes to understanding households economic well-being. As a result, the research focused more on household income with a particular emphasis on income inequality. It analyzed the distribution of household wealth across 28 countries, finding

Chart that shows how much worse income inequality is in U.S.

Income inequality is a growing problem in the United States. The richest Americans have reaped a disproportional amount of economic growth while worker wages have failed to keep pace. And the $1.5-trillion Republican-passed tax cuts from December stand to make the situation worse. One chart from the 2018 World Inequality Report highlights the unique nature of income inequality in the US compared to other

Why shareholder value drives income inequality

The CEO of Domino’s Pizza takes home roughly 435 times the average full-time wage. Jeff Bezos has become the world’s richest person with a A$200 billion fortune off the backs of low-paid Amazon warehouse workers. Rampant inflation in CEO realised pay has continued unabated while wages for Australian working people have been stagnant for years. As Reserve Bank Governor Philip Lowe has

Why the war on poverty in the US isn’t over, in 4 charts

On July 12, President Trump’s Council of Economic Advisers concluded that America’s long-running war on poverty “is largely over and a success.” I am a researcher who has studied poverty for nearly 20 years in Cleveland, a city with one of the country’s highest rates of poverty. While the council’s conclusion makes for a dramatic headline, it simply does not align

Obama on wealth inequality: “There’s only so big a house you can have.’”

Former United States President Barack Obama believes that ballooning wealth inequality is a threat to society, and that those who have the means should help those who are less fortunate. “Right now I’m actually surprised by how much money I got,” the 44th President said in his address to more than 10,000 people gathered in Johannesburg, South Africa,

Buzzwords and tortuous impact studies won’t fix a broken aid system

Development efforts over the past few decades have not been as effective as promised. Global poverty remains intractable: more than 4 billion people live on less than the equivalent of $5 (£3.80) a day, and the number of people going hungry has been rising. Important gains have been made in some areas, but many of

7 More Ways The Right And Left Enable Continued Income Inequality

In my last post, I mentioned seven ways people on the right and left hinder progress on income inequality. Here are the seven more ways that I mentioned would follow in another post. 1. We can keep growing out of our problems Expectations of constant growth are the usual solution you hear from the right and

7 Myths About Income Inequality And How We Think About It

We're a country of absolutes in attitudes. Maybe it’s a craving for simplicity and certainty, but we frequently frame problems and their potential solutions starkly. That's true for income inequality, social mobility, economic fairness, opportunity, and many related issues — innovation, education, jobs, crime, poverty, budget deficits and more. Our absolutist views become manufactured truisms.

Gender Pay Gap Starts While Kids Are Still on the Playground in America

The roots of this problem go even deeper than most first thought. The gender pay gap in America takes hold while earners are still children, according to a new study from BusyKid, a mobile app and web platform that allows children ages five through 17 to earn allowance to save, spend, share and invest. Boys

Video: What’s driving income inequality?

Income inequality is on the rise in many countries, but is it due to earned wealth, or inherited wealth—and should policy makers be trying to stop it? Chicago Booth's Eric Zwick and Luigi Zingales, along with Gabriel Zucman of the University of California, Berkeley, join Hal Weitzman to discuss the forces driving the phenomenon, as

Minimum wage? It’s time to talk about a maximum wage

Most of our mainstream political discourse on “fighting inequality” has revolved – for years now – around the more narrow goal of eliminating extreme poverty. Few of our elected leaders ever dare suggest that maybe we ought to think about eliminating extreme wealth as well. Even the mere idea seems a laughing matter. Congressman Keith

‘To be horrified by inequality and early death and not have any kind of plan for responding — that would not work for me.’

Life stories from Drew Faust, Howard Gardner, Annette Gordon-Reed, Martin Karplus, Toshiko Mori, Steven Pinker, E.O. Wilson, and many more, in the Experience series. Paul Farmer will forever be tied to his efforts to improve health care for the rural poor of Haiti, the Caribbean country he first visited between graduating from Duke University in 1982

2018-06-18T14:38:04+00:00 Tags: |

Dads often earn more, even if they’re not harder workers

When it comes to earning potential, it pays to be a dad, new UBC research suggests. The study, published in the journal Work, Employment and Society, found that men often receive a wage boost when they become fathers -- even if they're not necessarily working harder. In fact, when their work is scrutinized more closely

2018-06-16T13:27:12+00:00 Tags: |

UN expert calls US income inequality ‘a political choice’

A U.N.-supported human rights expert has blasted the yawning gap between rich and poor in the United States, insisting in a new report that the world's richest country "is now moving full steam ahead to make itself even more unequal." The United Nations' human rights office said Monday that Philip Alston, an independent expert commissioned

What’s the State of Global Inequality?

The first ever World Inequality Report was published recently by the leading economists who created the World Wealth and Income Database. The report serves as the most authoritative and up-to-date account of the state of global inequality in 2017 and will be vital to policymakers and scholars everywhere. Income inequality has increased across all world regions in recent decades, but

2018-05-23T04:44:42+00:00 Tags: , |

Income inequality is going to hit tomorrow’s retirees hard

One of the mysteries of personal finance has been the disconnect between the income inequality afflicting the working public and the claims by fiscal conservatives that most people's retirement lifestyles will be perfectly comfortable. A recent post on the Squared Away blog of Boston College's authoritative Center for Retirement Research solves the mystery. There is no