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

David Solomon succeeds Lloyd Blankfein as the new CEO of Goldman Sachs.

Fiona Sydney

2018-03-09 08:33:00 Friday ET

David Solomon succeeds Lloyd Blankfein as the new CEO of Goldman Sachs.

David Solomon succeeds Lloyd Blankfein as the new CEO of Goldman Sachs. Unlike his predecessors Lloyd Blankfein and Gary Cohn, Solomon has been an investmen

+See More

From crony capitalism to state capitalism, what economic policy lessons can we learn from Putin's reign in Russia?

Jonah Whanau

2018-03-13 07:34:00 Tuesday ET

From crony capitalism to state capitalism, what economic policy lessons can we learn from Putin's reign in Russia?

From crony capitalism to state capitalism, what economic policy lessons can we learn from President Putin's current reign in Russia? In the 15 years of

+See More

Ivanka Trump softens her father's brash and combative image with a social agenda toward female empowerment.

Fiona Sydney

2017-06-09 06:37:00 Friday ET

Ivanka Trump softens her father's brash and combative image with a social agenda toward female empowerment.

To complement President Trump's pro-business economic policies such as low taxation, new infrastructure, greater job creation, and technological in

+See More

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute.

Laura Hermes

2018-06-09 16:40:00 Saturday ET

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute.

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute. The tariffs effectively boost cost

+See More

China allows its renminbi currency to slide below the psychologically important threshold of 7-yuan per U.S. dollar.

Charlene Vos

2019-09-13 10:37:00 Friday ET

China allows its renminbi currency to slide below the psychologically important threshold of 7-yuan per U.S. dollar.

China allows its renminbi currency to slide below the key psychologically important threshold of 7-yuan per U.S. dollar. A currency dispute between the U.S.

+See More

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022.

Peter Prince

2022-02-02 10:33:00 Wednesday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022.

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022. As of early-January 2023, the U.S. Patent and Trademark O

+See More