Global economic inequality
Wealth and income inequality
Wealth – accumulated assets, minus liabilities (savings, pensions, real estate and stocks)
(North America and Europe: 67% of the world's wealth, India and Africa – 2%)
Income – wage, salary, interest on a savings account, rent, dividend payment
(Income inequality: - socialism of Marx
- private ownership of Locke
25 Richest 20 poorest
countries: Countries:
Corruption Perceptions Index
Why are some countries rich and others poor?
Institutions
- health care
- education
- law system etc.
Geography
- natural resources
- climate
- diseases
Culture
- beliefs
- customs
- religion
How to reduce economic inequality?
Increase the minimum wage
Create a progressive estate tax
Invest in infrastructure, education, health systems
Maintain safety net programs
The fight against corruption
Increase the minimum wage
Create a progressive estate tax
Invest in infrastructure, education, health systems
Maintain safety net programs
The fight against corruption
Resource curse – refers to the paradox that countries with an abundance of natural resources tend to have less economic growth and worse development outcomes than countries with fewer natural resources.