Global Inequality Reaches Levels Not Seen in Nearly 200 Years

Growing wealth gap

By Common Dreams · 3 Oct 2014

A+ A= A-
    Print this page      1 comments
1
     
Picture: Dean Chahim/flickr
Picture: Dean Chahim/flickr
Global income inequality has returned to levels recorded in the 1820s—when the Industrial Revolution produced sizable wealth gaps between the rich and poor—according to a new report released Thursday by the Organization for Economic Cooperation and Development (OECD).

The sweeping study, "How Was Life? Global Well-Being Since 1820," uses historical data from eight world regions to present for the first time "systematic evidence" of trends in areas such as health, education, inequality, the environment, and personal security over the past 200 years.

The report reveals that great strides have been made in some areas such as literacy, life expectancy, and gender inequality. "People's well-being has generally progressed since the early 20th century across a large part of the world," it reads.

But while income inequality, as measured by pre-tax household income among individuals within a country, fell between the end of the 19th century until around 1970, it began to rise markedly at that point, perhaps in response to globalization.

"The enormous increase of income inequality on a global scale is one of the most significant—and worrying—features of the development of the world economy in the past 200 years," the authors write. "It is hard not to notice the sharp increase in income inequality experienced by the vast majority of countries from the 1980s. There are very few exceptions to this."

In a speech Wednesday in Strasbourg, France before the Parliamentary Assembly of the Council of Europe, OECD secretary-general Angel Gurría called on world leaders to "strengthen our efforts to reduce inequality."

He declared:

The financial and economic crisis has exacerbated rising inequality and fueled a social crisis. In OECD countries the income of the top 10 percent of the population is 9.5 times that of the bottom 10 percent, up by more than 30 percent in 25 years. Anchored poverty has increased by approximately 2 percentage points between 2007 and 2011, with much larger increases in countries that have experienced the deepest and longest downturns. The number of those living in households without any income from work has doubled in Greece, Ireland, and Spain. And worryingly for our future, the youth have now replaced the elderly as the group experiencing the greatest risk of income poverty.

This article produced by Common Dreams is licensed under a Creative Commons Attribution-Share Alike 3.0 License.

You can find this page online at http://sacsis.org.za/site/article/2153.

A+ A= A-
    Print this page      1 comments
1
     

Leave A Comment

Posts by unregistered readers are moderated. Posts by registered readers are published immediately. Why wait? Register now or log in!

Comments

Rory Verified user
12 Oct

Money and Its Distributon

An ongoing and increasing problem in all societies is the growing numbers of poverty stricken people.

All our real economies consist of completed exchanges of goods and/or services.

All human beings have to make exchanges of goods and/or services with others in order to survive, let alone flourish.

Making exchanges without the assistance of money is extremely difficult to do hence in cash based societies such exchanges do not happen.

Money is the perfect facilitator of exchanges, it is purpose designed to fill this role.

Everybody can and needs to make exchanges.

Under [all?] current money systems however those without any money are denied access to this exchange facilitator, i.e. new money. New money is only supplied by banks, at a cost [interest], to those who can afford it, i.e. who already have money. Thus those without money are systemically denied access to the one thing, new money, that would enable them to become economically active in their own right.

This is not a circumstance defined by nature however but one that exists because of humanly created systems which enforce it.

It is quite possible to change current money systems to enable new money to be issued to anyone who needs it to make an exchange. The only proviso being that the first users of new money recognise that it requires that they subsequently sell the equivalent value of goods and/or services into the community and then forego the money received from the sale because they have already spent its value when they spent the new money.

Respond to this comment