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

The U.S. greenback soars in value as the Federal Reserve continues its interest rate hike.

Daisy Harvey

2018-10-07 13:39:00 Sunday ET

The U.S. greenback soars in value as the Federal Reserve continues its interest rate hike.

The U.S. greenback soars in value as the Federal Reserve continues its interest rate hike. With impressive service-sector data and non-farm payroll wage gro

+See More

Federal Reserve raises the interest rate to the target range of 2.25% to 2.5% as of December 2018.

Charlene Vos

2018-12-22 14:38:00 Saturday ET

Federal Reserve raises the interest rate to the target range of 2.25% to 2.5% as of December 2018.

Federal Reserve raises the interest rate to the target range of 2.25% to 2.5% as of December 2018. Fed Chair Jerome Powell highlights the dovish interest ra

+See More

This infographic visualization summarizes the key habits and investment styles of highly successful entrepreneurs.

Chanel Holden

2017-12-19 09:39:00 Tuesday ET

This infographic visualization summarizes the key habits and investment styles of highly successful entrepreneurs.

From Oprah Winfrey​ to Bill Gates​, this infographic visualization summarizes the key habits and investment styles of highly successful entrepreneurs:

+See More

International trade, immigration, and elite-mass conflict

Jacob Miramar

2023-12-09 08:28:00 Saturday ET

International trade, immigration, and elite-mass conflict

International trade, immigration, and elite-mass conflict The elite model portrays public policy as a reflection of the interests and values of elites. I

+See More

The Trump $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike.

Joseph Corr

2018-03-15 07:41:00 Thursday ET

The Trump $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike.

The Trump administration's $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike

+See More

The Federal Communications Commission (FCC) considers its majority vote to dismantle net neutrality rules.

John Fourier

2017-12-13 06:39:00 Wednesday ET

The Federal Communications Commission (FCC) considers its majority vote to dismantle net neutrality rules.

The Federal Communications Commission (FCC) has decided its majority vote to dismantle rules and regulations of most Internet service providers (ISPs) that

+See More