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Inequality Joseph E. Stiglitz

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Page 1: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Inequality

Joseph E. Stiglitz

Page 2: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

US: bottom 90% have seen little increase in income over last third of a century

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Source: World Wealth and Income Database

Page 3: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Europe: less increase in inequality in some countries than in others

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Source: World Wealth and Income Database

Page 4: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Italy: increase in inequality has been less extreme

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Source: World Wealth and Income Database

Page 5: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

France: little increase in inequality

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Source: World Wealth and Income Database

Page 6: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Spain

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Source: World Wealth and Income Database

Page 7: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Global Inequality: Share of Income Earned by Top 1%, 1975-2015

Chart from: US Economic Report of the President, January 2017.

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Page 8: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Source: OECD Income Distribution Database.

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Page 9: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

1975 1980 1985 1990 1995 2000 2005 2010 2015

Stagnation: U.S. median household income (constant 2015 US$)

Source: U.S. Census Bureau Note: Data is adjusted for the methodological change of 2013.

2015: $56,516

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1998: $58,301

Page 10: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

US: Median income of a full time male worker is at the level that it was more than 4 decades ago

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(constant 2015 $)

30,000

35,000

40,000

45,000

50,000

55,000

60,000

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Data is adjusted for the methodological change of 2013.Source: U.S. Census Bureau.

Page 11: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Median household income in Europe

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Source: Eurostat

Page 12: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Median household income in Italy

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Source: Eurostat

Page 13: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Median household income in France

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Source: Eurostat

Page 14: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Median household income in Spain

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Source: Eurostat

Page 15: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

US: Real wages at the bottom are at the level that they were roughly sixty years ago

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Source: Federal Reserve

Page 16: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Europe: Real Minimum Wages

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Source: Eurostat.

(Constant 2015 €)

Page 17: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Global Income Growth by Percentile

Source: Branko Milanovic.

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Page 18: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

The Koch BrothersThe Walton Family

The Walton Family and The Koch Brothers’ net worth = $230 billion

That’s the net worth of 150 million Americans or 44% of the country.

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Page 19: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Global InequalityOxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom 3.6 billion!)• In 2014: 85• In 2017: just 8 men

Big winners during last quarter century• Global 1% and global middle class (middle class in China and

India)

Big losers during last quarter century (not sharing in gains)• Those at the bottom and the middle class in advanced countries

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Page 20: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

Even health and life expectancy is in decline

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Source: Anne Case and Angus Deaton of Princeton University, charts published in Wall Street Journal.

Page 21: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

More Inequality is Associated with Less Mobility Across Generations

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Page 22: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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US: Disconnect Between Productivity and a Typical Worker’s Compensation, 1948-2015

Page 23: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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Europe: Disconnect in Productivity and Compensation

Source: Eurostat.

Page 24: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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Europe: Disconnect in Productivity and Compensation

Source: Eurostat.

Page 25: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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US: Labor Force Participation Rates

Source: Bureau of Labor Statistics.

Page 26: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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US: Employment to Population Ratios

Source: Bureau of Labor Statistics.

Page 27: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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Europe: Labor Force Participation Rates

Source: OECD, Labour Market Statistics.

Page 28: Income Inequality and Social, Economic, and Political ......Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (bottom

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Europe: Employment to Population Ratios

Source: OECD, Labour Market Statistics.