On November 8th, 2014, The Economist published an online version of its printed article titled “Forget the 1%”, that compared some of the views found in Thomas Picketty’s highly acclaimed book, Capital in the Twenty-First Century (2013), to other recent studies. For example, the article mentioned a 2004 study that focused on estate-tax data performed by Wojciech Kopczuk of Columbia University and Emmanuel Saez of the University of California, Berkley. It also took notice of the results rendered by New York University student, Edward Wolff’s study of Federal Reserve data as it related to consumer finance, and finally the Economist included an up close look at the research that Emmanuel Saez and Gabriel Zucman of the London School of Economics jointly performed on the topic. The article claimed that Picketty’s stance on wealth inequality is that wealth is controlled by the rich and will eventually turn back the hands of time to “an 18th century heritage society” (The Economist). That was to say that presently it is more lucrative for someone to marry an heir to riches than for one to launch a business. Is Piketty correct?
The Economist brought to the attention Financial Times editor Chris Giles, who suspected that Picketty’s research was unreliable, however, the editorial points out that recent studies, such as that performed by Saez and Zucman, do suggest that the wealth gap in America is reaching an all-time high as opposed to some of the earlier research in the likes of the collaborative research efforts of Kopczuk and Saez, which resulted in a similar outcome to both Wolff’s and Piketty’s study in that wealth inequality was rising at a slow rate. For instance, according to the earli...
... middle of paper ...
...s findings, they suggested that wealthy families are younger than they were generations ago and earn a bigger piece of the pie. For example, in 2012, their labor income was 3.1%, but was only 0.5% before 1970. The article went on to reincorporate Piketty’s view noted as ‘“patrimonial capitalism’”. Thereafter, making a brief mention of Mark Zuckerberg and Paris Hilton recognizing them as part of the young rich club, and likened to Hilton as being an heir to fortune. Recently, the wealthy’s assets in stocks have smoothed out, whereas their assets in bonds have increased said The Economist, so in the end, the article expressed that ultimately, the treasures of most moguls are in stocks of their own firms which suggests that the prosperities of America may soon have less to do with starting one’s own business, which agrees with Piketty’s position on this issue.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Our planet 's sustainability has reached a tipping point for many parts of the world. Bhutan has been in the forefront of change, denying the Gross National Product (GNP) as a measurement of economic development and policy and, instead, established the Gross National Happiness (GNH) scale in 1972. With GNH awareness presented to the United Nations, Bhutan is spreading this format worldwide. Drawing spiritual integrity into the groundwork of Bhutan’s decision making, gives the foundation, path and purpose, if rooted in spirituality, a means to liberate the materialistic profit model now in place, exploring policy intentions instead of outcomes.... [tags: Happiness, Happiness economics, Personal life]
1301 words (3.7 pages)
- The distribution of wealth in America has been unevenly distributed since 1970. We can see this distribution clearly through some of the wealthiest people in America who make millions of dollars, compared to a homeless individual. There is a huge income gap between rich and poor, the rich stay rich, and the poor, become poorer. Income inequality refers to the unequal distribution of income and wealth between the social classes of citizens. This concept of income inequality has proved over the years, to be a widespread problem, where in the future, economic inequality in developing countries will make up about “95 percent of the entire global population.” Nancy Birdsall discusses this notion... [tags: Poverty, Economic inequality, Wealth]
1011 words (2.9 pages)
- When making a controversial point or claim, it is often useful to have data to back it up. In discussing the inequality of wealth distribution in America, the data is not controversial but rather the impact it could have on different policies and governing techniques. In order to understand the best way to react to this data that shows a wealth gap is to look to the great minds of the past and their thoughts on economic inequality. One philosopher who spent a great deal of time discussing the implications and repercussions of economic inequality was Aristotle in his writing Politics.... [tags: Economic inequality, Distribution of wealth]
1274 words (3.6 pages)
- Time is Money A plethora of research studies exist on the topic of wealth inequality in America. There is no question that the top one percent of earners consume a large portion of wealth in this country while the other 90 percent of earners share the left-overs. Some of the related questions that I found during the course of my research are 1) Why are wealth and income distributions so vastly disproportionate. 2) Can America bridge the wealth gap. 3) If so, how. 4) Has the wealth gap increased over time.... [tags: Economic inequality, Distribution of wealth]
1440 words (4.1 pages)
- Surviving in America has become increasingly more difficult due to the Government’s lack of oversight which causes the income gap to increase and the middle class to disappear. Due to an extreme gap of income between the wealthiest 1% and the remaining 99% in America, the middle class is dissipating to nothing because of unequal distribution of wealth. Poverty in America is a major issue that can and should be addressed as soon as possible because unequal distribution of wealth is causing greed, controversy and hate among millions of citizens.... [tags: Economic inequality, Distribution of wealth]
1266 words (3.6 pages)
- There seems to be a huge gap of inequality and it seems to do nothing less than get bigger. Inequality is an issue within our country and is restraining the U.S. from being top notch the way it could be if we put more effort in. The U.S. has the most unequal distribution of wealth and income by far. The middle class is the heart of the economy and it keeps it going. The United States of America has the most unequal distribution of income and wealthy far, verging to an even greater inequality (5:33).... [tags: Economic inequality, Distribution of wealth]
2123 words (6.1 pages)
- Though money may not be the root of all evil, it certainly contributes to inequalities between those on opposite ends of the wealth distribution map. Upward mobility becomes difficult for those whose income does not match that of the wealthy because of the lack of opportunities provided to the people who are in the working class (Marx). Unfortunately, this repetitive cycle of wealth inequality draws parallels with the racial inequalities that are seen today. Statistically, people of color and women collect less revenue than white men, who are less restricted in their mobility, in America (Rowe).... [tags: Social class, Working class, Capitalism, Wealth]
853 words (2.4 pages)
- ... In 1971, if you were born to into the poorest 20%, you had a 9% chance of making it to the top 20% during your lifetime, and today, that chance remains unchanged.  What has changed is the difference between the top and bottom 20%. This is being driven by a number of factors, many of which bring contention between differing economist, politicians and analyst. Why is the wealth/income gap getting larger. The income gap has been widening partly because of globalization. A manufacturing worker is suddenly competing against third world country citizenry that will do the same work for a fraction of the wages.... [tags: distribution of assets, wealth or income]
1100 words (3.1 pages)
- • Why is there inequality. Free market economies foster discipline by rewarding the successful and penalizing failures. They inevitably create an economic hierarchy by producing a select few of wealthy individuals, a large middle class, and an even larger lower class. Individuals are free to move between classes based on their ability to satiate the desires of others. Only by freezing individual incomes at some moment in time are we able to consider class distinctions. Having established these clear-cut classes, one is then able to see that some have more relative to others.... [tags: Poverty, Wealth, Economic inequality]
1311 words (3.7 pages)
- The process of globalization has been spreading across the world during the last several decades, and as a result, the gap between developed and developing countries has become more noticeable and serious. The world includes nearly two hundred countries, only twenty of them are considered to be the most economically developed, and the rest of the nations have slow development or exist below the poverty line. In the world where every human should have the same rights as another, the great imbalance of incomes, education, medical care and even variety of food provision between different nations says about people’s inequality.... [tags: Poverty, Wealth, Economic inequality]
1134 words (3.2 pages)