Economic Inequality

America’s poor subsidize wealthier consumers in a vicious income inequality cycle

The less money you have, the more you spend to just be able to use money. Being poor is expensive. This problematic paradox is evident with basic financial services. And judging by Bank of America’s recent decision to impose fees of almost $150 a year on what were free checking accounts, the problem is getting worse. Too

Health care financing system deepens poverty and income inequality

Households' payments for medical premiums, copayments and deductibles pushed more than 7 million Americans into poverty in 2014, according to a study appearing in the American Journal of Public Health. Such payments also dramatically worsened overall income inequality. The researchers analyzed data on household medical payments from the Census Bureau's 2010-2015 Current Population Survey, the

2018-02-02T03:53:56+00:00 Tags: |

Income Inequality Debates Churn as Rich Get Richer: QuickTake

The pope has deplored it. European Central Bank President Mario Draghi has said it’s a destabilizing issue in the euro zone. It’s shifted Chinese economic goals and fueled voter anger in the U.S. presidential election. And a 700-page book about it by a French economist became a surprise best seller. It is inequality, a gap between rich and poor that has been

Inequality gap widens as 42 people hold same wealth as 3.7bn poorest

The development charity Oxfam has called for action to tackle the growing gap between rich and poor as it launched a new report showing that 42 people hold as much wealth as the 3.7 billion who make up the poorest half of the world’s population. In a report published on Monday to coincide with the gathering of

The American Health-Care System Increases Income Inequality

For most people, a single doctor’s visit can be a financial obstacle course. Many patients throughout the year pay hundreds or thousands of dollars in premiums, most often through workplace contributions. Then, at the doctor’s office, they are faced with a deductible, and they may need to pay coinsurance or make a copayment. If they

The cure for income inequality lies in the voting booth

A recent Deutsche Bank note on inequality confirmed what millions of American already know: Despite a soaring stock market and reassuringly low unemployment, the gap between Americans’ finances continues to widen. The data tell a stark picture. The top 10 percent used to capture about one-third of all income, now it gets over half. Wage disparities have

Massive new data set suggests economic inequality is about to get even worse

The “endless inegalitarian spiral” may be coming for us sooner than we think. In his best-selling 2014 book “Capital in the Twenty-First Century,” French economist Thomas Piketty warned that if the already rich were able to accumulate wealth faster than economies were able to grow, inequality would skyrocket in the coming decades, potentially destabilizing societies in the

What the dip in US life expectancy is really about: inequality

Living in the US increasingly looks like a health risk. Average life expectancy here dropped for the second year in a row, according to recent data from the Centers for Disease Control and Prevention. The grim trend stems from a toxic mixture of more drug- and alcohol-related deaths and more heart disease and obesity in many parts

A Nobel Prize-winning economist thinks we’re asking all the wrong questions about inequality

America is trying to come to terms with its economic inequality. Does inequality spur growth or kill it? Is it a necessary evil—or necessarily bad? Angus Deaton, an economics professor at Princeton, and the recipient of the 2015 Nobel Prize in economics, is asked questions like these all the time—and he doesn’t see the point. 

Women get less credit than men in the workplace

New research from the University of Delaware’s Kyle Emich suggests that women receive less credit for speaking up in the workplace than their male counterparts. Emich, an assistant professor of management in UD’s Alfred Lerner College of Business and Economics, explored this topic with the University of Arizona’s Elizabeth McClean, Boston College’s Sean R. Martin

2017-12-21T11:06:20+00:00 Tags: |

Why is America more tolerant of inequality than many rich countries?

MOST Americans are unenthusiastic about Republicans’ efforts to reward the richest with the biggest tax cuts. In polls taken on the eve of a vote on the government's tax bill in the Senate on December 2nd only between a quarter and a third of voters supported the plan. But in general Americans seem more willing

Income inequality has widened worldwide over the past 40 years

Global income inequality has worsened over the past four decades, a report finds, with the wealthiest 1 percent of the world’s population capturing twice as much income growth as the bottom half. The world’s middle class, made up mostly of people in North America and Europe, has by some measures fared the worst. Globalization has

The surprising factors driving murder rates: income inequality and respect

A 17-year-old boy shoots a 15-year-old stranger to death, apparently believing that the victim had given him a dirty look. A Chicago man stabs his stepfather in a fight over whether his entry into his parents’ house without knocking was disrespectful. A San Francisco UPS employee guns down three of his co-workers, then turns his weapon on himself, seemingly as a

Economic Inequality and Health Inequality Are Inextricably Linked

The devastation to struggling small towns and cities of Appalachia and the Northeast unleashed by the opioid epidemic has brought renewed attention to the connection between the physical health of individuals and the economic health of their communities. Indeed, the opioid crisis is an especially pernicious example of the many national-scale public health challenges that

2017-12-10T07:56:08+00:00 Tags: |

A Foolish Take: America’s Growing Income Inequality

A hedge fund manager is not the person one would expect to be talking about the growing divide between the rich and the poor, yet that's exactly what the chairman and chief investment officer of Bridgewater Associates is doing. In October, Ray Dalio wrote a post on LinkedIn, " Our Biggest Economic, Social, and Political

2017-12-09T04:35:15+00:00 Tags: |

Income inequality is bad enough, then add the race factor

Wealth is concentrating upwards in this country — we've known that for years. But new numbers really drive home just how severely. According to our new report, Billionaire Bonanza 2017, there's been a rapid updraft of wealth into the top echelon of multi-billionaires. The wealthiest 400 Americans now have more wealth together than the bottom 64 percent

Before the Fall of the Roman Republic, Income Inequality and Xenophobia Threatened Its Foundations

Long before Julius Caesar declared himself dictator for life in 44 B.C., essentially spelling the beginning of the end to the Roman Republic, trouble was brewing in the halls of power. The warning signs were there. Politicians such as Tiberius Gracchus and Gaius Gracchus (together known as the Gracchi brothers) were thwarted from instituting a

2017-11-21T13:59:51+00:00 Tags: |

Millennials are set to be the most unequal generation yet

In an economic climate where the top 1% own half the world’s wealth, a new analysis by Credit Suisse suggests that millennials in several advanced economies are likely going to face the worst income inequality of any generation in recent memory. The report, which focuses on the US, Germany, France, and Spain, shows that millennials are generally saddled

How Driverless Cars Could Drive Even Deeper Economic Inequality

Trulia’s chief economist says that as the wealthy move to the exurbs and work in their cars during their long commutes, it will change the fabric of our communities. How can we fix it? The reports of suburbia’s death have been greatly exaggerated. The emergence of driverless cars–like past innovations in transportation technology–will actually put

Rise of Agriculture to Blame for Inequality?

Researchers at Washington State University and 13 other institutions have found that the arc of prehistory bends towards economic inequality. In the largest study of its kind, the researchers saw disparities in wealth mount with the rise of agriculture, specifically the domestication of plants and large animals, and increased social organization. Their findings, published this

2017-11-15T16:36:05+00:00 Tags: |