Is Income Inequality A Global Problem Affecting Every Nation?

1810 Words Apr 19th, 2016 8 Pages
Our world economy is experiencing a rapidly growing income gap between the poor and the rich, having a dramatic effect on the economics and politics of the world. Although many Americans are aware of this, we underestimate how extreme the modern wealth gap is. “In a national survey, Norton and Ariely (2011) found that U.S. respondents estimated that the richest 20% of the population owns around 59% of total wealth, but believed that this richest quintile should ideally own just 32%. In reality, however, the richest 20% owns closer to 84% of total wealth.” (Norton) We live in a world where a small percentage of the population owns the vast majority of wealth in the United States. This is not, however, only seen in the United States. Instead, income inequality is a global problem affecting every nation. Australia, a comparably developed, capitalist, English speaking country, “provides an interesting comparison point. According to government data, the richest 20% of Australians own 62% of the nation’s wealth, while the poorest 20% hold less than 1% (ABS, 2011). This disparity has been on an upward trajectory over the past decade, with the top quintile increasing their share of the wealth by 3 percentage points since 2003–2004.” (Norton) This and the following statistics are all reliable and credible, as they come from peer reviewed journal articles written by professionals in the field of economics and reviewed by other professionals. Income inequality has a vast social,…

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