A recent article published by The Economist this week outlines the high level of economic inequality in one of the world’s most developed economies – America. This article reminded me of a TED Talk I watched recently where the speaker discusses the rise of the “Plutocrats” – the small percentage of the most economically powerful people in the economy. The top 0.1% of families hold almost 25% of wealth. Many economists suggest that globalisation and advancing technology are responsible for fuelling the global income gap and that they only serve to help the rise of the Plutocrats by taking away jobs from the middle class. Advances in technology and globalisation, although having lifted people from emerging markets out of poverty, have outsourced more jobs from the developed western economies. So although countries and companies are becoming richer, jobs are not being created and people, on the whole, are not being paid more in the middle class contributing to the fact that there is no real rise in the income level of the middle class whereas there has been a huge rise in income of the plutocrats. The level of wealth held by the bottom 90% of households has been decreasing over time while that of the top 0.1% has been steadily increasing.
Link to Economist article: http://www.economist.com/news/finance-and-economics/21631129-it-001-who-are-really-getting-ahead-america-forget-1