Global economic inequality is a subject that most people think about on a regular basis. It’s no secret that wealth is distributed unevenly, but what can be done about this, and is the situation getting any better? The infographic below provides an intriguing insight into income distribution and measures that could make a difference.
Just the other night my husband and I were watching the BBC Two documentary series on Universal Credit: Inside the Welfare State. It became apparent the financial struggles that we can enter if we lose our job or any unexpected changes to our working or living arrangements. Both my husband and I watched and had a discussion about the financial barriers that we have faced ourselves. It wasn’t long ago that I had fled an abusive relationship and built up debt to compensate for the cross country move and the job lost, more recently my husband was made redundant late last year. If you don’t have some kind of financial security or savings then these situations can spiral out of control almost instantly. We used to be told that you should have at least three months worth of wage put aside in case of losing a job, but would this be enough?
It felt like for one man in London it would have been more financially beneficial for him to be on universal credit than to be receiving a wage packet. How can this be for our society in our modern world today?
It doesn’t help those that are in abusive relationships to feel confident in taking that step forward and admittedly we grew quite some debt from that relationship and entering the world of the family court system. The loss of legal aid is another barrier for those struggling to flee. We have been able to overcome the debt that kept creeping up, only because of a few inheritances and without those we would be in a desperate state right now.
According to the infographic, 71% of adults in the world own less than the equivalent of $10,000 (USD). In 1975, the developed world was 10-times richer than the developing world. There is still a significant gap, but forty years later, inequality has decreased and some countries have made major strides.
There are two primary causes of global economic inequality, including a declining growth rate in the population and returns on investments exceeding overall economic growth. Despite an increase in the global population, the world population growth rate has slowed from 2.1% in 1960 to just over 1% in 2020. Predictions suggest that the rate could drop to 0.1% by 2100. Changes in global trade have also impacted wealth distribution in some countries. In the US, for example, middle-income families have seen wages stagnate and even fall due to the rise of Chinese exports.
Despite improvements, it is clear that there is still a chasm between developed and developing countries in terms of wealth distribution. In developed countries, inequality is also becoming more commonplace, so what can be done? The infographic highlights a number of measures, such as creating transparent and democratic trade policies, eliminating illegal trade outlets and avenues, introducing a living wage, ensuring the income tax rate is progressive and allowing people to join unions.
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