Economic Inequality between Countries Essay - 1565 Words

Inequality can be traced as far back as possible. It can also be described as disparity. This disparity can be in terms of income, wealth, class etc. Economic inequality can be described as the disparity between income of individuals or household within and outside a country. When â€Å"income inequality† is mentioned, most people think about it in a within the country context, but in a world that is becoming more integrated, economic inequality between countries is becoming more relevant. In a world where other people’s income and wealth affect our perception of life, one might ask the question, â€Å"is economic inequality the biggest issue of our time†. The history of economic inequalities between countries can be traced back to the 18th†¦show more content†¦3). The decline of global economic inequality between 1998 and 2008 is the first since 1760 according to World Bank. As shown in â€Å"figure 2†, the bottom two-thirds of world population received 12.7 percent of world income in 2008 as against 9.3 percent in 1998. But the stagnation or decline in real income of the global upper middle class, and big gains realized by the top 1%, reverse the position of the Lorenz curves for the last one-fifth of the distribution. Here, the top 1% in 2008 receives almost 15 percent of global income vs. 11 ½ twenty years earlier (Milanovic, 2012, p. 3). An example of the effect of the decline in equality between 1988 and 2008 is that of china where a person with a median income is richer than only 10% of the world population as of 1988 but that had changed in 2008, a median income earner in china is now richer than one-half of w orld population. Above are the information (Lorenz curve, Gini index and decline in global inequality between 1988 and 2008) that makes up the history of economic inequality between countries. https://en.wikipedia.org/wiki/Lorenz_curve FIGURE 1 http://www.ub.edu/histeco/pdf/milanovic.pdf FIGURE 2 (Milanovic, 2011, p. 16) Lots of activities has been happening since the onset of inequalities between countries. This has leads us to the current situations which are, firstly, effect of locationShow MoreRelatedBenefits Of Income And Assets Inequality Essay1462 Words   |  6 PagesIntroduction: Income and assets inequality is a significate issue in economy. Throughout human history capital and assets will likely continue to accumulate and become more concentrated, as a result that an greater level of inequality might be witness. Piketty ( 2014 ) found that the rate of GDP growth is lower than return on capital. 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