Are You in the 1%?: The issue of economic disparity has grown in popularity in recent years. And we’re not just talking about the United States; we’re talking about the entire planet.
There have been several demonstrations (some even on Wall Street). The issue stems from the figure stating that 1% of the world’s population controls more than 44% of household wealth.
Top 1% Receive The Highest Wages
According to reports, the richest 1% of Americans earned the greatest earnings ever in 2017. According to another study, the richest 1%’s income expanded faster than the bottom 99 percent’s.
Income Disparity Around the World
There are variances among countries all around the world. According to Bloomberg, being part of the top 1% in the United States costs $488,000 a year. It is merely $246,000 in Australia. This is largely due to disparities in average income. It is $62,850 in the United States and $53,190 in Australia.
In order to be in the top 1% of the world’s wealthiest persons, you must have a net worth of roughly $744,400.
How Does Debt Impacts Wealth
Americans rank fourth in the world in terms of household incomes and 22nd in terms of median wealth. This is due to the fact that Americans use a variety of credit sources. In 2018, their household debt was $13.21 trillion. According to a report, the top income years are also the peak debt years. People aged 35 to 44 have the greatest debt, totaling $133,100.
Causes of Income Inequality
Economic development in the United States following the Great Recession has also contributed to rising inequality. Wage growth among middle- and lower-income Americans was quite slow at the time. Those who were already among the affluent had the greatest salary increases. Wages in the lower and middle classes have generally stagnated and, in some cases, fallen.
In recent decades, real salaries have moved very little. Although the employment market has been strong and the economy has been performing well, there is a problem with the pay that workers are receiving. This is why several rallies were organized, and subsequently law regarding minimum wage increases was improved.
Extreme Poverty As a Barrier
When we look at poverty across the world, we can see that the population of industrialized countries is far better off than the population of countries where the majority of its residents are poor. In India, for example, the typical person possesses only $7,024 in assets, while an African citizen has only $4,138. In comparison, an adult in the United States has $403,974 and an adult in Europe has $144,903, respectively.
As a result, while Americans have the right to protest for such a cause, we must remember that inhabitants of industrialized nations are significantly more rich than the majority of the world’s population.