The world now faces an economic inequality crisis with few policy options.

Daisy Harvey

2018-01-04 07:36:00 Thu ET

The world now faces an economic inequality crisis with few policy options. Some recent U.S. Federal Reserve data suggest that both income and wealth inequality accelerates in America. The top 3% own 54% of U.S. wealth, whereas, the bottom 90% own only 24% of U.S. wealth. The top 3% rake in a much greater proportion of total income in comparison to the prior state back in 2010, whereas, the bottom 90% earn proportionately less now. U.S. income and wealth concentrate in white citizens, homeowners, and upper social echelons with high educational attainment.

This economic inequality between the rich and the poor also prevails in Britain, China, Japan, Australia, New Zealand, France, Germany, and some other parts of the Euro zone. Populist politics would seem to have become a natural reaction to this worldwide inequality in light of Brexit, Trump presidential election victory, and strongman rule by Putin, Xi, and Duterte. Pundits and policymakers can consider several solutions such as income tax credit, greater public investment in education, more progressive wage-versus-capital income tax treatment, and less residential segregation. A radical solution involves what Professor Thomas Piketty proposes as global capital taxation. The latter may affect international capital flows as Tobin taxes lower the average after-tax rate on capital investments in different countries.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

President Trump refreshes his public image through his presidential address to Congress.

Daisy Harvey

2017-02-01 14:41:00 Wednesday ET

President Trump refreshes his public image through his presidential address to Congress.

President Trump refreshes his public image through his presidential address to Congress with numerous ambitious economic policies in order to make America g

+See More

Allianz chairman Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus.

Apple Boston

2018-04-20 10:38:00 Friday ET

Allianz chairman Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus.

Allianz chairman Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus. The latter dominates the old school of thou

+See More

Michael Kors pays $2.3 billion to acquire the Italian elite fashion brand Versace.

Joseph Corr

2018-09-27 11:41:00 Thursday ET

Michael Kors pays $2.3 billion to acquire the Italian elite fashion brand Versace.

Michael Kors pays $2.3 billion to acquire the Italian elite fashion brand Versace. In accordance with Michael Kors's 5-year plan, the joint company grow

+See More

Michael Bloomberg helps Democrats flip the House in the midterm elections and then gears up his presidential bid.

Charlene Vos

2018-11-11 13:42:00 Sunday ET

Michael Bloomberg helps Democrats flip the House in the midterm elections and then gears up his presidential bid.

Michael Bloomberg provides $80 million as campaign finance for Democrats to flip the House of Representatives in the November 2018 midterm elections, gears

+See More

USPTO fintech patent protection and accreditation

Andy Yeh Alpha

2023-01-03 09:34:00 Tuesday ET

USPTO fintech patent protection and accreditation

  USPTO fintech patent protection and accreditation   As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved

+See More

AYA finbuzz podcast offers fresh insights into the latest stock market issues and economic trends for better and wiser investment decisions.

Amy Hamilton

2019-06-30 12:37:00 Sunday ET

AYA finbuzz podcast offers fresh insights into the latest stock market issues and economic trends for better and wiser investment decisions.

AYA Analytica finbuzz podcast channel on YouTube June 2019 In this podcast, we discuss several topical issues as of June 2019: (1) Federal Reserve h

+See More