I found this article that discusses how inequality worldwide continues to rise (here). We learn that among these 34 countries that:
The United States was near the high end of the inequality spectrum,
followed by Israel, the United Kingdom and Greece. Only Turkey, Mexico
and Chile were found to have higher levels of income inequality than the
U.S.
Denmark was the least unequal country according to the report, as
measured using the Gini index, a common measure of income distribution.
Slovenia, the Slovak Republic and Norway also ranked near the low end of
the spectrum.
Gurría said the report’s findings demonstrate that inequality slows down
economic growth. He urged OECD member countries to adopt more
redistributive policies, saying that redirecting wealth flows would
benefit not just low-income households but the economy as a whole.
The article reexamines the concept of wealth redistribution and how it is promotes economic growth and stimulates the economy. The author of this article discusses that the Organization for Economic Cooperation and Development (OECD) would recommend not only implementing tax transfers but investing in eduction, creating policies that stimulate more employment and making it easier for women to enter as well as stay in the workforce.
We continue to observe the way that continued rise of inequality affects nations on an economic as well as global scale. Like author Thomas Piketty and Sen. Warren mentioned, the issue of inequality is a problem that should be addressed immediately in order for us to move forward and focus on more important matters (i.e., climate change). However, it seems nations have not yet realized that this is a serious matter that needs to be directly addressed because if it continues to be ignored it may hinder economic growth.
What are your thoughts?
It's so unfortunate the United States is towards the higher end of the spectrum in inequality. I think that there really should be more investment in things such as education and research in order to facilitate growth and provide opportunities to those who would not have it otherwise. I think this is probably the first line of attack towards fighting inequality as Piketty also purports in his book. The US should also examine how other countries on the low end of the spectrum facilitate equality and look to mimic some of thier tactics for doing so.
ReplyDeleteIt certainly is upsetting to know that we live in a country that is ranked so highly for inequality. I think it's especially bad here in the US because of the American mentality of building your own success and rewarded for your hard work. This makes the idea of wealth redistribution and other social welfare plans seem bad and counterproductive to society and the economy, when in fact research says the opposite. It's going to be a hard battle to get past those kinds of mentalities, but I think it would be helpful, as Taylor said, to look at how countries with very little inequality are functioning and the US should try to implement them as much as possible.
ReplyDeleteIt goes to show the country's priorities and how they are perhaps not right. I agree with Taylor's comment that pulls from Piketty, there should be greater investments in education. I also think it could be beneficial to observe policy in countries that fall on the lower end of the spectrum. We saw a ted talk in the fall in Pub Sector Econ, http://www.ted.com/talks/nick_hanauer_beware_fellow_plutocrats_the_pitchforks_are_coming/transcript?language=en, and I really like how he suggests educating the wealthiest Americans on the potential future consequences. Take a look at it if you have time.
ReplyDeleteI agree with everyone that it is sad that the United States is so high on the list in terms of inequality but really not that surprising when you consider the way Americans approach capitalism and the idea of the "American dream". Piketty refers to American society as one that sees itself as being "hypermeritocratic", when in reality, as Sen. Warren pointed out, the system clearly benefits those already at the top. While I think that income inequality is a huge problem that does need to be addressed quickly, I think it is inaccurate to say that G20 nations are unaware of how serious the issue is. Governments are very aware of inequality and the subsistence level living standards of those in poverty. However, in a country like the United States, people living in poverty do not contribute to political campaigns, are unable to lobby for their interests, and in some states it is even very difficult for them to vote. It's not that governments are unaware of the consequences of extreme inequality, it's that there are a significant group of people at the upper ends of the income spectrum that have a large interest in maintaining the status quo.
ReplyDeleteI agree as well that it is upsetting that the United States is on the high end of the list in terms of inequality, but I am also not surprised. Our government is made up of many of the elite members of our country, who do not want a more equal distribution of income because that would take away some of their income. Bronte made a great point about those in poverty not being able to contribute to political campaigns or lobby their their interests. However, this problem will not be able to be fixed with money. I think it is going to take a refusal by those not in the elite portion of our society to no longer accept extreme inequality as a reality. Also, education is mentioned as another fix, which I agree with, but I believe by decreasing inequality more people in the U.S. will have the opportunity to receive a quality education. Once the opportunity is there, the rest falls on the shoulders of the individual to take initiative and put the education to good use.
ReplyDeleteI have to agree with everyone as well that it is sad to see the United States so high on the spectrum of inequality around the world, but I am also not surprised. As a society we have changed our values to focus only on our own wealth and getting as much of the pot as possible. As others have stated, wealthy lobbyist have contributed so much to political campaigns that government members have become puppets for the ultra rich. Its sad to see that our country does not look out for the individuals in poverty along with giving them no say in governmental policies.
ReplyDeleteI really liked this article, it demonstrated that inequality was a weight on economic growth. This statement is fascinating to me because it discredits the trickle down theory, where if the rich are getting even richer society as a whole is better off. Like Sen. Warren stated in the video we watched last week, in America it seems like we have a trickle up effect. All the hard work from our citizens seems to tickle up into the pockets of the superrich and this leaves our economy stagnate. I am a huge advocate for increasing taxes on the superrich and investing that money from them into entities that will promote long-term sustainable growth, such as education and technology.
ReplyDelete