{"id":509344,"date":"2022-11-12T20:34:00","date_gmt":"2022-11-12T17:34:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/"},"modified":"2022-11-12T20:34:00","modified_gmt":"2022-11-12T17:34:00","slug":"the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/","title":{"rendered":"#The Conversation: Why inequality is growing in the U.S. and around the world"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a412f7626dab\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a412f7626dab\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#%E2%80%9CThe_Conversation_Why_inequality_is_growing_in_the_US_and_around_the_world%E2%80%9D\" >&#8220;The Conversation: Why inequality is growing in the U.S. and around the world&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#The_rich_are_getting_much_richer_thanks_to_large_capital_gains_and_favorable_tax_breaks\" >The rich are getting much richer, thanks to large capital gains and favorable tax breaks<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#Gini_index\" >Gini index<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#Drivers_of_extreme_income_and_wealth\" >Drivers of extreme income and wealth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#Another_day_another_billionaire\" >Another day, another billionaire<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#Why_inequality_matters\" >Why inequality matters<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#More_on_inequality\" >More on inequality<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/the-conversation-why-inequality-is-growing-in-the-u-s-and-around-the-world\/#Fatema_Z_Sumar\" >Fatema Z. Sumar<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CThe_Conversation_Why_inequality_is_growing_in_the_US_and_around_the_world%E2%80%9D\"><\/span>&#8220;The Conversation: Why inequality is growing in the U.S. and around the world&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_rich_are_getting_much_richer_thanks_to_large_capital_gains_and_favorable_tax_breaks\"><\/span>\n  The rich are getting much richer, thanks to large capital gains and favorable tax breaks<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001382408\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001382408\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       U.S.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.census.gov\/library\/publications\/2022\/demo\/p60-276.html\" class=\"icon none\">income inequality grew in 2021<\/a>\u00a0for the first time in a decade, according to data the Census Bureau released in September 2022.<\/p>\n<p> That might sound surprising, since the most accurate measure of the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.census.gov\/library\/publications\/2022\/demo\/p60-277.html\" class=\"icon none\">poverty rate declined during the same time span<\/a>.<\/p>\n<p>But for\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.hks.harvard.edu\/centers\/cid\/about-cid\/people\/staff\/fatema-z-sumar\" class=\"icon none\">development experts like me<\/a>, this <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arent contradiction makes perfect sense.<\/p>\n<div class=\"paywall\">\n       That\u2019s because what\u2019s been driving income inequality in the United States\u2014and around the world for years\u2014is that the very rich are getting even richer, rather than the poor getting poorer.<\/p>\n<p><strong>Brett Arends: <\/strong>One reason the rich get richer<\/p>\n<p>In every major region of the world outside of Europe, extreme wealth is becoming concentrated in just a handful of people.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:63.42857142857142%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-663724?width=540&amp;size=1.5763546798029557 540w, https:\/\/images.mktw.net\/im-663724?width=620&amp;size=1.5763546798029557 620w, https:\/\/images.mktw.net\/im-663724?width=639&amp;size=1.5763546798029557 639w, https:\/\/images.mktw.net\/im-663724?width=700&amp;size=1.5763546798029557 700w, https:\/\/images.mktw.net\/im-663724?width=700&amp;size=1.5763546798029557&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-663724?width=700&amp;size=1.5763546798029557&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-663724?width=700&amp;size=1.5763546798029557&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-663724?width=700&amp;height=444\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            The Conversation<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<h4><span class=\"ez-toc-section\" id=\"Gini_index\"><\/span>Gini index<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p> Economists and other experts track the gap between the rich and the poor with what\u2019s known as the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.census.gov\/library\/stories\/2022\/09\/income-inequality-increased.html\" class=\"icon none\">Gini index<\/a>\u00a0or\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/g\/gini-index.asp\" class=\"icon none\">coefficient<\/a>.<\/p>\n<p>This common measure of income inequality is calculated by assessing the relative share of national income received by proportions of the population.<\/p>\n<p>In a society with perfect equality\u2014meaning everyone receives an equal share of the pie\u2014the\u00a0Gini coefficient\u00a0would be 0. In the most unequal society conceivably possible, where a single person hoarded every penny of that nation\u2019s wealth, the Gini coefficient would be 1.<\/p>\n<p>The Gini index rose by 1.2% in the U.S. in 2021 to 0.494 from 0.488 a year earlier, the Census found. In many\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/data.worldbank.org\/indicator\/SI.POV.GINI?locations=BR-IN-GB-ZA-FR&amp;most_recent_year_desc=false\" class=\"icon none\">other countries<\/a>, by contrast, the Gini has been declining even as the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blogs.worldbank.org\/developmenttalk\/global-income-inequality-and-covid-19-pandemic-three-charts\" class=\"icon none\">COVID-19 pandemic<\/a>\u2014and the deep recession and weak economic recovery it triggered\u2014worsened global income inequality.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Inequality tends to be greater in\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/worldpopulationreview.com\/country-rankings\/wealth-inequality-by-country\" class=\"icon none\">developing countries<\/a>\u00a0than wealthier ones. The\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bbc.com\/news\/world-us-canada-47456308\" class=\"icon none\">United States<\/a>\u00a0is an exception. The U.S. Gini coefficient is much higher than in similar economies,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/data.worldbank.org\/indicator\/SI.POV.GINI?locations=FR-DK\" class=\"icon none\">such as Denmark<\/a>, which had a Gini coefficient of 0.28 in 2019, and France, where it stood at 0.32 in 2018, according to the World Bank.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:82.71428571428572%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-663726?width=540&amp;size=1.2098298676748582 540w, https:\/\/images.mktw.net\/im-663726?width=620&amp;size=1.2098298676748582 620w, https:\/\/images.mktw.net\/im-663726?width=639&amp;size=1.2098298676748582 639w, https:\/\/images.mktw.net\/im-663726?width=700&amp;size=1.2098298676748582 700w, https:\/\/images.mktw.net\/im-663726?width=700&amp;size=1.2098298676748582&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-663726?width=700&amp;size=1.2098298676748582&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-663726?width=700&amp;size=1.2098298676748582&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-663726?width=700&amp;height=579\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            The Conversation<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<\/p>\n<p>In 2021, the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/wir2022.wid.world\/www-site\/uploads\/2022\/03\/0098-21_WIL_RIM_RAPPORT_A4.pdf\" class=\"icon none\">richest 1%<\/a>\u00a0of Americans owned 34.9% of the country\u2019s wealth, while average Americans in the bottom half had only $12,065\u2014<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/inequality.org\/facts\/global-inequality\/#us-wealth-concentration\" class=\"icon none\">less money<\/a>\u00a0than their counterparts in other industrial nations. By comparison, the richest 1% in the United Kingdom and Germany owned only 22.6% and 18.6% of their country\u2019s wealth, respectively.<\/p>\n<p>Globally, the richest 10% of people now possess nearly 76% of the world\u2019s wealth. Meanwhile, the bottom 50% own just 2%, according to the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/wir2022.wid.world\/www-site\/uploads\/2022\/03\/0098-21_WIL_RIM_RAPPORT_A4.pdf\" class=\"icon none\">2022 World Inequality Report<\/a>, which analyzes data and the work of more than 100 researchers and inequality experts.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Drivers_of_extreme_income_and_wealth\"><\/span>Drivers of extreme income and wealth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Large increases in executive pay are contributing to higher levels of\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/doi.org\/10.1257\/aer.p20171014\" class=\"icon none\">income inequality<\/a>.<\/p>\n<p>Take a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cfr.org\/backgrounder\/us-inequality-debate\" class=\"icon none\">typical corporate CEO<\/a>. Back in 1965, he\u2014<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fisher.osu.edu\/blogs\/leadreadtoday\/a-brief-history-female-fortune-500-ceos\" class=\"icon none\">all CEOs were white men<\/a>\u00a0then, and\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.weforum.org\/agenda\/2022\/03\/ceos-fortune-500-companies-female\" class=\"icon none\">most still are today<\/a>\u2014earned about 20 times the amount of an average worker at the company he led. In 2018, the typical CEO earned 278 times as much as their typical employees.<\/p>\n<p>But the world\u2019s roughly\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.npr.org\/2022\/04\/06\/1091141947\/forbes-billionaires-wealth-shrunk-russia\" class=\"icon none\">2,700 billionaires<\/a>\u00a0make most of their money not through wages but through\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/wir2022.wid.world\/www-site\/uploads\/2022\/03\/0098-21_WIL_RIM_RAPPORT_A4.pdf\" class=\"icon none\">gains in the value of their<\/a>\u00a0stocks and other investments.<\/p>\n<p>Their assets grow in large part because of a cascade of\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/itep.org\/billionaires-should-pay-taxes-on-their-income-every-year-like-the-rest-of-us\/\" class=\"icon none\">corporate and individual tax breaks<\/a>, rather than salaried wages granted by shareholders. When the wealthy in the United States earn money from\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/taxes\/capital-gains-tax-rates\" class=\"icon none\">capital gains<\/a>, the highest tax rate they pay is 20%, whereas the highest wage earners are on the hook for as much as 37% on every additional dollar they earn.<\/p>\n<p>This calculation does not even count the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.taxpolicycenter.org\/briefing-book\/how-are-capital-gains-taxed\" class=\"icon none\">effects of tax breaks<\/a>, which often slash the real-world capital-gain tax to much lower levels.<\/p>\n<p>Tesla<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/lastsale\" class=\"positive\">+2.75%<\/bg-quote><span>,<\/span><br \/>\n       SpaceX and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> CEO\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.insider.com\/how-elon-musks-extreme-wealth-compares-to-everything-2021-5\" class=\"icon none\">Elon Musk<\/a>\u00a0is currently the world\u2019s richest man, with a fortune\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/elon-musk-net-worth-how-did-elon-musk-get-so-rich\/\" class=\"icon none\">of $174 billion<\/a>, according to a Bloomberg estimate. The $383 million he made a day in 2020 made it possible for him to buy enough Tesla Model 3 cars to\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.insider.com\/how-elon-musks-extreme-wealth-compares-to-everything-2021-5\" class=\"icon none\">cover almost the whole of Manhattan<\/a>\u00a0had he wished to do so.<\/p>\n<p>Musk\u2019s wealth accumulation is extreme. But the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.washingtonpost.com\/technology\/2021\/03\/12\/musk-bezos-zuckerberg-gates-pandemic-profits\/\" class=\"icon none\">founders of several tech companies<\/a>, including Alphabet<br \/>\n        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"positive\">+2.72%<\/bg-quote><span>,<\/span><br \/>\n       Meta<br \/>\n        META,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205064656\/composite\" class=\"positive\">+1.03%<\/bg-quote><br \/>\n       and Amazon<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+4.31%<\/bg-quote><span>,<\/span><br \/>\n       have all earned many billions of dollars in just a few years. The average person could never make that much money through a salary alone.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Another_day_another_billionaire\"><\/span>Another day, another billionaire<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>A\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/oxfamilibrary.openrepository.com\/bitstream\/handle\/10546\/621341\/bp-inequality-kills-170122-summ-en.pdf\" class=\"icon none\">new billionaire is created every 26 hours<\/a>, according to Oxfam, an international aid and research group where I used to work.<\/p>\n<p>Globally, inequality is so extreme that the world\u2019s 10 richest men possess more wealth than the 3.1 billion poorest people, Oxfam has calculated.<\/p>\n<p>Economists who study global inequality have found that the rich in large English-speaking countries, along with India and China, have seen a dramatic rise in their earnings\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/www.doi.org\/10.1257\/jel.49.1.3\" class=\"icon none\">since the 1980s<\/a>. Inequality boomed as\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/wir2022.wid.world\/www-site\/uploads\/2022\/03\/0098-21_WIL_RIM_RAPPORT_A4.pdf\" class=\"icon none\">deregulation, economic liberalization<\/a>\u00a0programs and other policies created opportunities for the rich to get richer.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Why_inequality_matters\"><\/span>Why inequality matters<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The rich tend to spend less of their money than the poor. As a result, the extreme concentration of wealth can slow the pace of\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/doi.org\/10.1111\/1467-923X.12237\" class=\"icon none\">economic growth<\/a>.<\/p>\n<p>Extreme inequality can also exacerbate\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.hup.harvard.edu\/catalog.php?isbn=9780674980822\" class=\"icon none\">political dysfunction<\/a>\u00a0and\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ideas.ted.com\/the-4-biggest-reasons-why-inequality-is-bad-for-society\/\" class=\"icon none\">undermine faith<\/a>\u00a0in political and economic systems. It can also erode principles of\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/doi.org\/10.1007\/s11245-020-09697-z\" class=\"icon none\">fairness and democratic norms of sharing power and resources<\/a>.<\/p>\n<p>The richest people have\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.lovemoney.com\/galleries\/103043\/the-billionaire-people-who-are-richer-than-entire-countries?page=1\" class=\"icon none\">more wealth than entire countries<\/a>. Such extreme power and influence in the hands of a select few who face little accountability is\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.aeaweb.org\/articles?id=10.1257\/jel.20171419\" class=\"icon none\">raising concerns<\/a>\u00a0that are part of a robust debate on whether and how to address extreme inequality.<\/p>\n<p>Many\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/doi.org\/10.1257\/aer.p20161006\" class=\"icon none\">proposed solutions<\/a>\u00a0call for new taxes, regulations and policies, along with\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fordfoundation.org\/news-and-stories\/videos\/how-the-ford-foundation-uses-grants-to-tackle-inequality\/\" class=\"icon none\">philanthropic strategies<\/a> like using grants and community-based investments to dismantle inequality.<\/p>\n<p>Voters in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wbur.org\/news\/2022\/01\/13\/millionaires-tax-report-massachusetts\" class=\"icon none\">Massachusetts<\/a> approved a tax increase on the income earned by their richest residents in November 2022.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cbpp.org\/blog\/massachusetts-ballot-measure-would-raise-billions-for-education-infrastructure\" class=\"icon none\">Proponents of these initiatives<\/a>\u00a0claim the revenue raised would boost funding for public services, such as education and infrastructure.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/smartasset.com\/taxes\/biden-capital-gains-tax#.\" class=\"icon none\">President Joe Biden<\/a>\u00a0is also proposing to almost double the top capital-gains tax for those making over $1 million.<\/p>\n<p>However societies choose to act, I believe change is needed.<\/p>\n<p><strong><em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/profiles\/fatema-z-sumar-1383012\" class=\"icon none\">Fatema Z. Sumar<\/a>, executive director of the Center for International Development, Harvard Kennedy School<\/em><\/strong><\/p>\n<\/p>\n<p>This commentary was originally published by The Conversation\u2014<strong><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/why-inequality-is-growing-in-the-us-and-around-the-world-191642\" class=\"icon none\">Why inequality is growing in the US and around the\u00a0world<\/a><\/strong><\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetDynamic\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetDynamic\n            article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n    .wsj-interactive.generic-iframe-embed[name=\"counter\"] {\n        height: 1px;\n        margin-bottom: 5px;\n    }\n    .at16units .bleed .wsj-interactive.generic-iframe-embed[name=\"counter\"] {\n        height: 1px;\n    }\n    body.at12units .bleed .wsj-interactive.generic-iframe-embed[name=\"counter\"] {\n        height: 1px;\n    }\n    body .inline .wsj-interactive.generic-iframe-embed[name=\"counter\"],\n    body .offset .wsj-interactive.generic-iframe-embed[name=\"counter\"],\n    body .header .wsj-interactive.generic-iframe-embed[name=\"counter\"],\n    body.at8units .bleed .wsj-interactive.generic-iframe-embed[name=\"counter\"] {\n        height: 1px;\n    }\n    body.at4units .inline .wsj-interactive.generic-iframe-embed[name=\"counter\"],\n    body.at4units .offset .wsj-interactive.generic-iframe-embed[name=\"counter\"],\n    body.at4units .header .wsj-interactive.generic-iframe-embed[name=\"counter\"] {\n        height: 1px;\n    }\n<\/style>\n<p><iframe class=\"wsj-interactive generic-iframe-embed\" name=\"counter\" width=\"100%\" scrolling=\"no\" frameborder=\"no\" src=\"https:\/\/counter.theconversation.edu.au\/content\/191642\/count.gif\"><\/iframe><\/p>\n<div class=\"wsj-article-caption\" itemprop=\"caption\">\n<\/div><\/div>\n<\/p><\/div>\n<h6><span class=\"ez-toc-section\" id=\"More_on_inequality\"><\/span>More on inequality<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> <strong>From Barron\u2019s:<\/strong> Opinion:\u00a0The Year That Changed How Wealth Grows<\/p>\n<p>Majority of Americans now doubt attainability of generation-to-generation upward mobility<\/p>\n<p>Average CEO pay is now 399 times more than a typical worker\u2019s wage \u2014 and one-third of that rise happened in the last three years<\/p>\n<\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Fatema Z. Sumar\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Fatema_Z_Sumar\"><\/span>Fatema Z. Sumar<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7151-808E9A9FE8F4%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The Conversation: Why inequality is growing in the U.S. and around the world&#8221; The rich are getting much richer, thanks to large capital gains and favorable tax breaks U.S.\u00a0income inequality grew in 2021\u00a0for the first time in a decade, according to data the Census Bureau released in September 2022. That might sound surprising, since the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":509345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-636680\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-509344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/509344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=509344"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/509344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/509345"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=509344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=509344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=509344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}