income inequality

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Employee Stock Ownership Plans: Can They Close the Wealth Gap?

Much has been written about the growing trend of income inequality in the US; we hear less often about the wealth divide, which is even more stark. While the top 10 percent of US households today own 51 percent of the country’s wealth, the bottom 50 percent own one percent. With no savings to fall back on, families

After The Fall: Income Inequality and the Great Recession

If there’s any point of agreement amongst the many ten-year anniversary eulogies of the 2008 recession, it is that at some point the crisis ended. The nearly nine million jobs that were lost in the crisis are just as cemented in the history as the most popular phone at the time — the Motorola RAZR. Disagreements remain on the

Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Representing a tangible way to reward those who have

Some People Hate Income Inequality So Much They Pretend It Doesn’t Exist

Twitter can highlight some interesting intellectual chiaroscuro. Left-leaning think-tank Center for Economic and Policy Research posted this today: Robert Samuelson Is Denying Inequality, Againhttp://dlvr.it/Qrc1MW  Samuelson was dancing around whether incomes had actually risen or not. CEPR made some good points, but I think missed the most fundamental ones. First, to Samuelson, who wrote about the

A better way to share the wealth

Many Washington conversations about inequality focus on income. The amount of money that American workers and families make is indeed important for their economic security—on average, wages and salaries account for nearly 80% of income for U.S. households. The income inequality and wage stagnation that have persisted for decades certainly pose threats to the health of

Bernie Sanders And Tucker Carlson Agree On Income Inequality. Why Can’t Democrats And Republicans?

I've never watched Tucker Carlson's program on Fox but am aware of his reputation. Profiles of him in major media have tended to have one slant. Coming across a one in the American Conservative by Alan Pell Crawford, I gave a read and found a surprising passage: This raises a question: Can you be a conservative if

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,

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.,

Why Silicon Valley Income Inequality Is Just a Preview of What’s to Come for the Rest of the U.S.

Silicon Valley companies continue to pump out disruptive technology that's fueling regional and national economic growth. But according to a new report, they're also producing income inequality. A team of researchers at the Everett Program at UC Santa Cruz studied federal and regional income statistics and found that in Silicon Valley, wages are sliding backwards rather than following the rise

China’s Racing to the Top in Income Inequality

During China’s greatest period of economic growth, fed by widespread industrialization that lifted millions out of poverty, inequality has also increased — at the fastest pace and to the highest level in the world. It may get worse. China’s Gini coefficient, 1 a widely used measure of income dispersion across a population, has risen more steeply over the last decade than

By the numbers: Americans are barely in control of their money

In an era of financial-services innovation, money remains one of the great stressors in our lives. By the numbers: 5% of Americans with checking accounts rack up more than 50% of all the country's overdraft and bounced-check fees. It's a $35 billion income stream for the banks, even after Dodd-Frank. Needless to say, those 5% of Americans are

50 years of rising income inequality has created a ‘new gilded age’ in the US

Reactions to the Great Recession like the Occupy Wall Street movement brought to national attention just how massive the wealth gap in the United States had become. Even as the economy recovered, the gap between the top 1% of earners and the rest of the population has continued to increase. This is according to an extensive

How ‘Crazy Rich’ Asians Have Led to the Largest Income Gap in the U.S.

The leads of the new romantic comedy “Crazy Rich Asians” are precisely what you might expect, based on the title: picture-perfect images of the immigrant success story. Viewers might even get the impression from watching the film that every Asian lives a charmed life. Nick Young (played by Henry Golding) and Rachel Chu (Constance Wu)

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

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

Women Are More Likely To Live In Poverty Than Men – It Doesn’t Have to Be Like This

Poverty has a female face. Women earn less than men, have lower incomes over a lifetime and are more likely to be poor in old age. 47% of single parents are living in poverty – the vast majority of them women. And poverty levels are rising – the number of children living in poverty has

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.

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