Household wealth amounted to about 430% of national income in 2013. The graph below comes from Piketty’s frequent co-author Emmanuel Saez. The original paper, with Gabriel Zucman, here.
Composition has changed too. Pensions have become relevant, while proprietorships and partnerships are down, meaning less people own farms and their own businesses.
Not all poor are the same. In purchasing power parity (PPP) dollars, the bottom 40% in the US, in terms of income per capita, would be among the top 10% in Brazil, and the same with respect to a Brazil and India comparison. Source is the World Bank.
This week a Map and a graph really. Global household wealth in mid-2014 totaled USD 263 trillion, according to the new edition of the Credit Suisse Global Wealth Report (written again by Shorrocks, Davies and Lluberas; I pointed out to the previous edition before here). Map below shows the global distribution of wealth by country.
The top 1% in the US holds approximately 20% of income, and more like 33% of all wealth, as shown in the graph below.
The equivalent for the top decile is 75% of wealth. Asset price dynamics is essential to understand the evolution of wealth inequality, and inheritance is central to its persistence. If you had any doubts.
Figure below is from Léonce Ndikumana and James Boyce’s Africa’s Odious Debt, and shows the relation between public health expenditures and infant mortality in 33 countries in the 2005-7 period.
The regression coefficient is -0.26, meaning that an increase in 1% in spending reduces infant mortality by 0.26%. The argument in the book suggests that to the extent that resources are used to paying for external debt, then debt service is bad for health outcomes.
The graph below shows that, in OECD countries, greater pension coverage is related to lower levels of poverty.
Note that the US is below the OECD average, with a lower share of pension income in older person’s total income, and higher levels of poverty. For the full ILO report on pensions go here.
From URPE’s Fall of 1969 Newsletter. Should URPE members demand reparations for being brainwashed by the American Economic Association and the mainstream of the profession?
Nate Cline calculated that it would be around $ 65 million in 2014 prices. And I must agree with him, it seems a bit low.
Figure below shows the wealth share per percentile, top 10 divided by the top 3 percent and the following 7, and bottom 90 percent, since 1989.
As it can be seen the wealth share of the top 3 percent increased from 44.8 percent in 1989 to 54.4 percent in 2013. See the original report here. And yes the top 10 combined have more than 70 percent of all the wealth.