Economic Inequality

Globalization Boosted Income Inequality, Study Says

Globalization's rise in recent decades has widened income inequality in the U.S. while padding executives' pockets, according to a study put out by the National Bureau of Economic Research that directly links globalized commerce with the country's prominent wage gap. Researchers from the University of Colorado–Boulder and Williams College in Massachusetts surveyed executive compensation at

Researchers have answered a big question about the decline of the middle class

America is getting richer every year. The American worker is not. Far from it: On average, workers born in 1942 earned as much or more over their careers than workers born in any year since, according to new research — and workers on the job today shouldn’t expect to catch up with their predecessors in

Is It Worth It to Try to Get Rich People to Realize They’re Lucky?

How do you get people with power and resources to care for the less fortunate? That’s a key question in politics and psychology, and the short answer is: “It’s hard.” Generally speaking, people who are doing well in life are benefiting from whatever’s going on at the moment and are unlikely to want to change

2017-05-07T08:29:57+00:00 Tags: |

Inequality is getting worse, but fewer people than ever are aware of it

Inequality in America is on the rise. Income gains since the 1980s have been concentrated at the top. The top 10 percent today take home 30 percent of all income, and control over three-quarters of all wealth. We have returned to the level of income inequality that marked the Great Depression of the 1920s and

Peter Temin: Economic Mobility Requires the Nearly Impossible

The MIT economist Peter Temin argues that economic inequality results in two distinct classes. And only one of them has any power. A lot of factors have contributed to American inequality: slavery, economic policy, technological change, the power of lobbying, globalization, and so on. In their wake, what’s left? That’s the question at the heart

To Help Tackle Inequality, Remember the Advantages You’ve Had

Most Americans view current levels of economic inequality as a problem: In fact, for 30 years, Gallup polls have consistently found a clear majority supporting a more even distribution of wealth and income. But there is far less agreement on how to achieve that goal. Do we need to level the playing field so that

Growth in Africa Has Bypassed Millions

The importance of tackling inequality in Africa cannot be overstated. Inequality is undermining growth and threatens to reverse the gains that have been made in the fight against poverty. Four of the world’s five most unequal countries are in Africa. In South Africa, three billionaires own the same wealth as the poorest half of the

Warren Buffett nailed why poverty in America ‘does not make sense.’

Poverty in the U.S. just doesn't add up, according to Warren Buffett,  the CEO of Berkshire Hathaway who's given away billions of dollars to charitable causes.  Buffet got real on America's wealth inequality in an interview with Reuters published Sept. 8, 2015. Here's that quote in context: "You expect unequal results in a market economy, very unequal.

2017-04-22T04:36:10+00:00 Tags: |

America is Regressing into a Developing Nation for Most People

A new book by economist Peter Temin finds that the U.S. is no longer one country, but dividing into two separate economic and political worlds. You’ve probably heard the news that the celebrated post-WW II beating heart of America known as the middle class has gone from “burdened,” to “squeezed” to “dying.”  But you might

Want to solve income inequality? Simple: pay workers more

If there is a single global problem that almost everyone agrees needs to be tackled, it is income inequality. It’s a bigger deal in some countries than others: bad in the US, less so here (thanks to relatively aggressive tax and spending policies). But it’s a problem everywhere. Of course, there is a vigorous debate

Study Links Income Inequality, Carbon Emission Across U.S. States

Across the U.S., state-level carbon emissions are higher in states where income is more highly concentrated among the wealthiest residents, according to a new study by two Boston College researchers. On a global level, the connection between national wealth and carbon emissions has been well documented. The study, by sociologists Andrew Jorgenson and Juliet Schor,

Money to burn: As the wealthy get wealthier, carbon emissions grow in US states

On a global level, the connection between national wealth and carbon emissions has been well documented. The study, by sociologists Andrew Jorgenson and Juliet Schor, is the first to link income inequality and carbon emissions within and across the individual U.S. states. The study found that state-level carbon emissions between 1997 and 2012 were positively

2017-04-11T17:20:13+00:00 Tags: , |

Income inequality is also rising between companies, and not just individuals

Inequality isn’t just rising between individuals, it’s also a rising between companies. That is, top-paying companies have boosted paychecks for their employees by much more than low-paying companies have for theirs. This isn’t just about the earnings of executives rising faster than the working masses. According to recently published research (pdf) by economists at Stanford,

Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

In 1980, Jim Baron, now a professor at the Yale School of Management, and William Bielby, now a professor at the University of Illinois, published a seminal article on firms and inequality. In it, the authors, both sociologists, made a compelling argument that, to understand labor market outcomes like inequality, it wasn’t enough to look

2017-04-02T05:26:02+00:00 Tags: , , |

Is technology contributing to increased inequality?

As global poverty continues to decline, another issue emerges. According to the World Economic Forum, rising income inequality and the polarization of societies pose a risk to the global economy, and may lead to increased polarization and lack of political stability. This, however, is not a global problem. In developing countries, inequality is decreasing and the amount of people

Mind the gap: Addressing global income inequality

One of the most notable post-game analyses of the U.S. presidential election last November was penned by the French economist Thomas Piketty, who argued that Donald Trump’s upset victory was mainly a symptom of resentment over the widening gap between rich and poor. Piketty’s 2013 bestseller “Capital in the Twenty-First Century,” a sweeping account of

Iceland Plans To Become World’s First Country To Require Equal Pay For Women

"Gender equality benefits all of us," Iceland's Prime Minister Bjarni Benediktsson said on International Women's Day, as his government works on a law to require companies to show they pay men and women the same salary for the same work. Benediktsson discussed the plan in New York, where he attended an International Women's Day summit

2017-03-13T12:07:53+00:00 Tags: |

Science versus the ‘Horatio Alger myth’

LOS ALAMOS, N.M., Feb. 22, 2017—In a new study published today in the journal PLOS ONE, Los Alamos National Laboratory scientists have taken a condensed matter physics concept usually applied to the way substances such as ice freeze, called “frustration,” and applied it to a simple social network model of frustrated components. They show that

2017-03-07T13:43:04+00:00 Tags: |

How The Psychology Of Income Inequality Benefits Luxury Brands

The more extreme income inequality becomes, the more pressure people feel to create the impression that they’ve climbed up the social ladder. I like to think that despite being wealthier than most Americans, I remain immune to materialistic desires. I drive a 17-year-old Honda Accord and wouldn’t know designer clothes if you wrapped me in