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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.

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