Why inequality may be worse than it seems
GLOBALLY, income inequality has collapsed over the past 25 years. A lower proportion of the world population live in poverty today than at any time in human history. People doing the same job in different countries are more likely to earn similar wages. However, within economies, income inequality has risen. Almost every major economy has seen a growing gap between the richest and poorest in its society. This creates political, social and economic problems.
What really matters to most people is not income (as such) but living standards. After all, it is what money can purchase that makes money important. Thinking about living standards means thinking about real or inflation adjusted levels of income. This creates a problem, because alongside income inequality th…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access
Far from thawing, the US-China economic war could see a new front opening up
China’s better economic growth hides reasons to worry