U.S. economic inequality increases to pre-Great-Depression levels.

Fiona Sydney

2019-02-17 14:40:00 Sun ET

U.S. economic inequality increases to pre-Great-Depression levels. U.C. Berkeley economics professor Gabriel Zucman empirically finds that the top 0.1% richest adults own about 25% of total household wealth in America (in accordance with a similar economic inequality situation back in the 1920s).

When we broaden the core definition of the upper socioeconomic echelon, the top 1% richest households own 40% of national wealth as of 2016. This high wealth share compares with the 25%-30% thresholds back in the 1980s. Over the past 30 years, the bottom 90% household wealth share has significantly declined in similar proportions. Russia is the only comparable country with similar wealth inequality. The current Zucman empirical study resonates with the main themes of persistent global economic inequality in the recent book, Capital in the new century, written by Thomas Piketty. The root causes of U.S. income and wealth inequality include information technology adoption, elite education, high-skill human capital shortage, and talent concentration.

The government can design affordable college and graduate school education for young adults to better prepare for their vocational pursuits. Ubiquitous information technology adoption allows fresh talents to better appreciate the knowledge-driven productivity gains from robotic automation, artificial intelligence, and smart data analysis etc.

 


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

We assess the global fiscal deficits and sovereign debt burdens in America, Europe, and many other countries worldwide.

James Campbell

2027-01-31 12:25:00 Sunday ET

We assess the global fiscal deficits and sovereign debt burdens in America, Europe, and many other countries worldwide.

In recent decades, many governments have chosen to run high fiscal deficits on top of sovereign debt mountains so that greater government intervention still

+See More

The recent British pound depreciation is a big Brexit barometer.

Apple Boston

2019-08-20 07:33:00 Tuesday ET

The recent British pound depreciation is a big Brexit barometer.

The recent British pound depreciation is a big Brexit barometer. Britain appoints former London mayor and Foreign Secretary Boris Johnson as the prime minis

+See More

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Apple Boston

2020-05-21 11:30:00 Thursday ET

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Most blue-ocean strategists shift fundamental focus from current competitors to alternative non-customers with new market space. W. Chan Kim and Renee Ma

+See More

Millennials can save to make a fortune with compound interest over 40 years.

Laura Hermes

2017-07-25 10:44:00 Tuesday ET

Millennials can save to make a fortune with compound interest over 40 years.

NerdWallet's new simulation suggests that a 25-year-old millennial who earns an inflation-free base salary of $40,456 and saves 15% each year faces a 99

+See More

Larry Summers critiques that the Trump tax holiday for U.S. multinational corporations may cause inadvertent consequences.

Rose Prince

2017-01-17 12:42:00 Tuesday ET

Larry Summers critiques that the Trump tax holiday for U.S. multinational corporations may cause inadvertent consequences.

Former Treasury Secretary and Harvard President Larry Summers critiques that the Trump administration's generous tax holiday for American multinational

+See More

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth.

Chanel Holden

2019-11-19 09:33:00 Tuesday ET

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth.

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth. Despite a sharp slowdown in U.S. services and utilities

+See More