• Wolandia
  • The Book
  • Blog and Scenarios
  • Contact Me
Login

Login
Wolandia
  • Wolandia
  • The Book
  • Blog and Scenarios
  • Contact Me

Shifts in Income and Wealth Distribution

Home Shifts in Income and Wealth Distribution

Most of modern economic history is the story of growth and increased wealth. For the previous century or more, people have become accustomed to improvements, to feeling richer, to believing they and their children can do better. Recent data indicate that previous growth patterns are changing, with growth slowing and with most of the gains going to the wealthy. The topic is controversial. Some economists think inequality is not increasing. Some claim it is, but is not a problem. Some think inequality is the most important problem of the current century.

The data itself supports two trends that at first glance might appear contradictory. The first is that inequality between countries seems to be decreasing.  GDP per capita figures are converging, slowly and unevenly, as poorer countries grow more quickly than richer ones. At the same time, inequality within countries seems to be growing. The share of total income and wealth going to the top 1 percent is on the rise in the twenty-first century after many years of falling inequality. Inequality can potentially bear on a broad range of factors in the global economy, including growth trends, investment patterns, policy responses, and political stability.

Selected Bibliography

Scenario Summaries

Scenario 3A: Increased “enclavization” and differences more within, than between, countries

Considerations

  • Seek transitional and up and coming markets in emerging markets, especially that combine access to culture with security
  • Signaling is key, look to private schools, clubs, care facilities

Scenario 3B: Electoral backlash, increased transfers and social spending focused on the middle class

  • Government contractors that carry out educational, job training programs to help the educated shift careers
  • Key areas of government spending that generates middle class jobs, with related service providers: education, infrastructure, military technology

Scenario 3C: Security and electoral threat, countered by increased transfers and social spending focused on lower and working classes

  • Infrastructure and military spending most likely to increase, along with related industries
  • Depending on how spending is financed, may coincide with increased use of tax havens
  • Increased incarceration and/or security spending may coincide with programs

Scenario 3D: Emergence of a neo-feudal society with sharper and less surmountable owner/renter divisions

  • May amplify effects of scenarios in demographic change and ecological change sections
  • Watch hybrid and share ownership schemes for key assets
  • Focus on market with currently low vacancy rates, but favorable rent to price ratios

Leave a Reply

Your email is safe with us.
Cancel Reply

Contact Us

Send us an email and we'll get back to you, asap.

Send Message

© 2017 - Wolandonomics, all images by permission from Pavel Kuczynski, http://pawelkuczynski.com/ Theme by HB-Themes.

  • Wolandia
  • The Book
  • Blog and Scenarios
  • Contact Me