#AceNewsServices – WESTERN WORLD – June 27 – As tension over inequality simmers, persistent cash hoarding by multinationals and the super-rich may be one measure of how seriously attempts at remedial action are being taken (Reuters)
(Rich and Poor as the Great Divide Increases)
The political heat over soaring income and wealth gaps in the United States, Britain and much of the developing world has built up since the credit shock and global recession of 2008/09.
Even though protest groups such as Occupy failed to gain traction much beyond 2011, the evidence of inequality continuing to balloon so soon after such a seismic economic bust has refocussed the minds of economists, politicians and voters.
Last week’s annual CapGemini/RBC survey of investors worldwide showed the number of households with more than $1 million in wealth to be invested rose almost 15 percent to 13.7 million in the year through 2013. Their total wealth rose almost 14 percent to $53 trillion, it estimated.
Both the ranks of the rich and their collective wealth have now risen 60 percent since 2008, the survey showed, and those fortunes are expected to rise a further 22 percent by 2016.
Notes: Numbers are adjusted for family size. Each quintile contains 20 percent of the weighted sample. The dashed line represents the 95th percentile of the P.S.I.D. sample.
(PewTrust) – Pursuing the American Dream uses the most current available data to measure mobility by family income and wealth, and personal earnings to reveal how closely tied a person’s place on the economic ladder is to that of his or her parents’. Some of the highlights of the research include:
- Eighty-four percent of Americans have higher family incomes than their parents did.
- Those born at the top and bottom of the income ladder are likely to stay there as adults. More than 40 percent of Americans raised in the bottom quintile of the family income ladder remain stuck there as adults, and 70 percent remain below the middle.
- African Americans are more likely to be stuck at the bottom and fall from the middle of the economic ladder across a generation.
- A four-year college degree promotes upward mobility from the bottom and prevents downward mobility from the middle and the top.
Pew’s study measures both absolute and relative mobility. Watch our video to learn more about the differences between the two.
Considering both absolute and relative mobility together is essential to understanding the full picture of opportunity in America.