Thomas Piketty empirically shows that the top 1% cohort rakes in 20%+ of U.S. national income.

Daisy Harvey

2018-09-01 07:34:00 Sat ET

As the French economist who studies global economic inequality in his recent book *Capital in the New Century*, Thomas Piketty co-authors with John Bates Clark medal winner and Berkeley professor Emmanuel Saez the latest September 2018 World Inequality Report. This fresh report empirically demonstrates that the rise of income-and-wealth for the top 1% U.S. population mirrors the fall of income-and-wealth for the bottom 50% U.S. population. Specifically, the top 1% cohort rakes in more than 20% of U.S. national income in 2017 in comparison to only 11% back in 1980. At the same time, the bottom 50% cohort receives 12% of U.S. national income in 2017 in comparison to about 20% back in 1980.

Not only do the rich become richer and the poor become poorer, the income and wealth transfers seem simultaneous, synchronous, and causal in time-series data. This stark feature shows an empirically robust increase in U.S. economic inequality over the recent decades.

However, this socioeconomic issue cannot reflect talent concentration in specific labor markets. At least some of this dichotomous wealth inequality arises from the fact that several industries such as biotech, telecom, and social media mold large players with competitive moats into quasi-monopolies. These mega players invest heavily in patents, trademarks, copyrights, and other intellectual properties in order to safeguard their market dominance against external competitive forces.

Nobel Laureate and former chief economist at World Bank Joseph Stiglitz points out that tech titans have become quasi-monopolies with high market concentration. This concentration serves as a primary explanation for worse income and wealth inequality in America. When the network platform orchestrators such as Facebook, Apple, Microsoft, Google, Amazon, Netflix, and Twitter (FAMGANT) reinforce their market strength and dominance, they may violate antitrust laws and regulations. Also, several other industries such as pharmaceutical firms (Johnson & Johnson, Merck, and Pfizer etc) and telecoms (AT&T, Verizon, Sprint, and T-Mobile) are new additions to the checklist of U.S. quasi-monopolies.

This new technological trend aggravates socioeconomic inequality, deepens anti-competitive concerns, and harms consumer benefits in terms of longer-term price and quality improvements.

 


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

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Alphabet Google (U.S. stock symbol: $GOOG).

Becky Berkman

2025-09-18 08:03:32 Thursday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Alphabet Google (U.S. stock symbol: $GOOG).

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund

+See More

Jared Diamond delves into how some societies fail, succeed, and revive in global human history.

Becky Berkman

2023-08-28 08:26:00 Monday ET

Jared Diamond delves into how some societies fail, succeed, and revive in global human history.

Jared Diamond delves into how some societies fail, succeed, and revive in global human history. Jared Diamond (2004)   Collapse: how societies

+See More

Bank of England publishes its latest insights into the economic impact of Brexit on British real productivity, capital investment, and labor supply.

Olivia London

2018-12-03 10:40:00 Monday ET

Bank of England publishes its latest insights into the economic impact of Brexit on British real productivity, capital investment, and labor supply.

Bank of England publishes its latest insights into the economic impact of Brexit on British real productivity, capital investment, and labor supply as of 20

+See More

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire.

John Fourier

2019-04-17 11:34:00 Wednesday ET

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire.

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire. In his annual letter to A

+See More

Trump tariffs begin to bite U.S. corporate profits from Ford and Harley-Davidson to Caterpillar and Walmart etc.

James Campbell

2018-10-25 10:36:00 Thursday ET

Trump tariffs begin to bite U.S. corporate profits from Ford and Harley-Davidson to Caterpillar and Walmart etc.

Trump tariffs begin to bite U.S. corporate profits from Ford and Harley-Davidson to Caterpillar and Walmart etc. U.S. corporate profit growth remains high a

+See More

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold.

Jacob Miramar

2018-12-07 11:35:00 Friday ET

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold.

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold. NYSE and NASDAQ share prices rebo

+See More