#68: Income inequality versus wealth inequality

Much is written about income inequality. Yet, the distribution of wealth is far more unequal. Income is the flow of money to you; wealth is what you have accumulated.

Figures just released by the World Institute for Development Economics Research for the year 2000 show that more than half of all wealth is owned by just 2% of the world's adults. This equates to a world where for each person with one-thousand-dollars, there are nine with only one dollar each.

If you had more than two-thousand-one-hundred-and-sixty-one dollars in the year 2000 (as measured by official exchange rates), you belonged to the wealthier half. If your wealth amounted to more than five-hundred-and fifteen-hundred-thousand dollars, you were in the top 1%.

The funny thing is this: Although many people in poor countries own almost nothing, a lot of people in rich countries have less than nothing: they owe more than they own.


I’m james@nonsenseatwork.com

Copyright: 2007 James Henry McIntosh

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