Wednesday, May 4, 2011

Considering the Gap Between Rich and Poor

Take a look at the graph to the right: As the countries on the left show, the incomes of rich households rose at faster rate than the incomes of poor households.

As the Economist puts it:
American society is more unequal than those in most other OECD countries, and growth in inequality there has been relatively large. But with very few exceptions, the rich have done better over the past 30 years, even in highly egalitarian places like Scandinavia.
Why? The report points to three possible answers: lower trade barriers combined with technology advancements, rich people marrying other rich people, and fluid job markets.

The chart shows the countries that comprise the EU as discrete enties. To compare the United States with the EU, consider the CIA World Factbook, which estimates its 2009 Gini index at 30.4.

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