Wealth inequality

Very interesting video about wealth inequality in the US. It would be interesting to see the same for the UK. Probably wouldn’t be very different. Something that was very interesting was that although people recognised that wealth distribution was quite unequal, they didn’t appreciate quite how unequal it was. The actual distribution was also very far from what most would have regarded as reasonable.

Maybe what the video didn’t do quite as well was discuss the link between income inequality and wealth inequality and also how the wealth distribution has changed over time (especially in the last 30 years). It is discussed, but it would have been nice to see how it has changed. Wealth and income are different and one has to be a little careful when considering wealth distributions since, in a day-to-day sense, the income distribution is what tells us how much money people have to spend. One could imagine a society with a very unequal wealth distribution but with a much more equal income distribution. What seems to have happened in the last 30 years is that the income distribution has become more and more unequal (the top 1% in the US have gone from taking 9% of all the income to taking 24% of all the income – similar changes have taken place in the UK). The change in the income distribution has allowed the top earners to accumulate more and more wealth and is what has driven the change in the wealth distribution. Anyway, have a look at the video yourself and see what you think.

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