Economic Inequality

/Tag: Economic Inequality

The Roots of Economic Inequality

The United States is divided by wealth and social class, and the gap is widening. In 1980, according to the World Inequality Report, the richest 10% of the population held just under 35% of national income; by 2016, that share had risen to around 47%. As wealth disparities have widened, so have differences in outcomes.

The world’s paying too high a price for inequality …

Joseph Stiglitz at Columbia University reminded us in the Scientific American this month that just three Americans – Jeff Bezos, Bill Gates and Warren Buffett – account for more wealth than the entire poor half of the US population. As I watched the six pallbearers bringing Walter Kwok Ping-sheung’s coffin out of St John’s Cathedral last Thursday,

The Richest 10% of Americans Now Own 84% of All Stocks

The stock market continues to be one of President Donald Trump’s favorite indicators of the country’s health as stocks continue to hit all-time highs. But a shrinking share of Americans are getting rich off the market’s dizzying rise, according to a new analysis. The top 10% of American households, as defined by total wealth, now

Investors Can And Should Address The Fundamental Causes Of Income Inequality

Investors are increasingly aware of the system-level effects of their investments. In a previous post I have written about how the very large asset owners and asset managers have to consider whether their investments are making a positive or negative contribution to the financial, environmental, and social systems that support human life on Earth. Sudden shocks (e.g.,

Economic inequality could cause U.S. debt downgrade, Moody’s says

Economic inequality isn’t just an academic idea, as the recent wave of populist voting has made clear. But a new report suggests that worsening inequality in the U.S. could have financial repercussions for the country. That report, out in early October from the credit-ratings agency Moody’s Investors Service, is called “Government of the United States:

This index measures progress and sustainability better than GDP

Conventionally, economists use gross domestic product (GDP) to estimate the sustainability of the economy and the quality of societal welfare. However, this approach is not only incorrect and logically flawed, but also in gross neglect of nature's contribution to the society. GDP measures the performance and level of economic activities though the market value of

2018-10-13T07:55:53+00:00Tags: |

Drone photos capture the staggering inequality in Mumbai

Mumbai’s startling inequality presents itself in a variety of ways. It is visible when driving down the busy roads and from the windows of its suburban trains—swanky high-rises often stand in proximity to a sprawling network of shanties. But the clearest view of the disparity comes from up in the sky. It was from this

This Chart Shows Social Security’s Growing Inequality Problem

For millions of Americans Social Security represents an economic safety net. Yet recent research shows its benefits are tilting more and more in favor of the wealthiest retirees. And it’s due to how long we live. According to new analysis from the Center for Retirement Research at Boston College, big gains in life expectancy among the

Why Building a More Democratic Economy Matters for Nonprofits

“We are suffering not from the rheumatics of old age, but…from the painfulness of readjustment between one economic period and another.”  John Maynard Keynes, Economic Possibilities for Our Grandchildren, 1930 As the quote from John Maynard Keynes reminds us, this is not the first time the economy has faced upheaval. Keynes wrote at the beginning of the

‘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+00:00Tags: |

Economic inequality, politics, and capital

Economic inequality and campaign finance are two of the hottest topics in America today. Unfortunately, the topics are typically discussed separately, but they are actually intertwined. The rise of US economic inequality that economist Thomas Piketty chronicles in his renowned book Capital in the Twenty-First Century – starting in the late 1970s and continuing through today –

Why the Wealth Gap Hits Families the Hardest

What does economic inequality really look like? Income alone doesn’t give a complete picture. Income inequality describes the gap between a six-figure salary and minimum wage. But the more alarming gap occurs in wealth — a household’s total assets minus debts. To understand how inequality is playing out in the United States, we need to

Earth Day: it is about equity as well as the environment

Growing gaps in family structure, educational investments, school readiness, test scores, and college entry and completion all make upward economic mobility a more difficult prospect for children born to poor families. Poor children in poor neighborhoods are at an even greater disadvantage. Growing up in an impoverished community doesn’t only affect your lifetime earnings –

2018-04-25T15:53:38+00:00Tags: |

The ethics of reducing inequality

Around the world, the effects of alarmingly high economic inequality are spilling over into politics and society. Economic insecurity is a driving force behind violent conflicts in the Middle East and the rise of fascist elements in some European countries, not least Hungary and Poland. Even in older democracies such as the United States, economic

How government policies in India and China are widening income inequality

Wealth inequality continues to grow, according to the 2018 edition of the World Inequality Report. In the past three decades, 28% of the aggregate increase in real incomes in North America and western Europe was captured by the top 1% of earners. The bottom half saw less than 10% of this increase. Inequality has also settled

Is Housing Inequality the Main Driver of Economic Inequality?

Economic inequality is one of the most significant issues facing cities and entire nations today. But a mounting body of research suggests that housing inequality may well be the biggest contributor to our economic divides.Thomas Piketty’s influential book, Capital in the Twenty-First Century, put economic inequality—and specifically, wealth inequality—front and center in the global conversation. But research by

Richest 1% on target to own two-thirds of all wealth by 2030

The world’s richest 1% are on course to control as much as two-thirds of the world’s wealth by 2030, according to a shocking analysis that has lead to a cross-party call for action. World leaders are being warned that the continued accumulation of wealth at the top will fuel growing distrust and anger over the

Investing in public education earns high marks for greater upward mobility

Investing in education may help boost economic opportunities for the next generation, according to a team of economists. In a study, researchers suggest that investing in public education can lead to more upward economic mobility and lower teen pregnancy rates, as well as provide a way to ease income inequality. "It's something we've long suspected,

2018-04-06T04:00:47+00:00Tags: |

“Separate and unequal:” 50 years later, a landmark report on US racial inequality still resonates

Our nation is moving toward two societies, one black, one white—separate and unequal.” This was the main conclusion of the US National Advisory Commission on Civil Disorders in a scathing 1968 report (pdf). In the summer of 1967, president Lyndon Johnson convened an 11-member committee to investigate the race riots and disorder that broke out in Detroit, Newark,

Salesforce added a new section to its annual report highlighting its social activism

Salesforce has a new section in its annual report that's entirely dedicated to one of CEO Marc Benioff's biggest passions: social activism. In its filing disclosed on Friday, Salesforce added a new section titled "Environmental, Social and Governance" that highlights the company's efforts in those areas. "We believe the business of business is improving the

2018-03-10T09:39:46+00:00Tags: |