Free Market

The Worlds 1%

By Mike Kapic / January 3, 2019 / Comments Off on The Worlds 1%

Are You in the Top One Percent of the World? BY DANIEL KURT, Oct 29, 2018 A few short years ago, the “Occupy” movement helped put the spotlight on income inequality around the globe. While the protestors have long retreated from Wall Street and other power centers, the issue hasn’t exactly gone away. Indeed, the gap…

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Capitalism vs. Greed

By Mike Kapic / December 3, 2018 / Comments Off on Capitalism vs. Greed

It isn’t greed that people have in going about their daily pursuits, it is their own self interests that drives them. Capitalism is not about greed but rather ideas and self interest. Watch Friedman respond to Phil Donahue’s typical leftist rhetoric.

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Why Central Bankers Missed the Crisis

By Mike Kapic / December 3, 2018 / Comments Off on Why Central Bankers Missed the Crisis

WSJ November 17, 2018 The lesson of 2008, a top economist says, is that monetary maestros don’t pay enough attention to financial markets. Are they making the same mistake again? By Joseph C. Sternberg | 1641 words Basel, Switzerland It’s been a rough decade for most developed economies, as businesses, politicians, policy makers and voters…

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5 Reasons to Worry About Soaring Federal Debt

By Mike Kapic / December 2, 2018 / Comments Off on 5 Reasons to Worry About Soaring Federal Debt

Compared to the size of the economy, today’s federal debt is, by far, the highest in our peacetime history. Chris Edwards October 21, 2018 The US Treasury reports that the federal budget deficit was $779 billion in fiscal 2018. The deficit is caused by spending in excess of tax revenues and is financed by borrowing from foreign and domestic…

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Bad Medicine for Doc’s & Patients

By Mike Kapic / November 21, 2018 / Comments Off on Bad Medicine for Doc’s & Patients

Medicare for All: Bad for Doctors and Patients Alike October 22, 2018   |   By The Association of Mature American Citizens Medicare for All has been gaining considerable traction in American left-wing political circles over the last year, becoming a key platform position for many Democratic candidates in the lead-up to the 2018 midterms and the 2020…

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The Worlds 1%

Are You in the Top One Percent of the World?

BY DANIEL KURT, Oct 29, 2018

A few short years ago, the “Occupy” movement helped put the spotlight on income inequality around the globe. While the protestors have long retreated from Wall Street and other power centers, the issue hasn’t exactly gone away.

Indeed, the gap between the haves and the have-nots has grown wider than ever. According to the Credit Suisse Global Wealth Report 2018, the top 1% of adults account for more than 47% of household wealth globally.

This raises an interesting question: Who exactly are the 1% worldwide? The surprising answer: If you’re an American, you don’t have to even be close to being uber-rich to make the list.

Ranking by Income

According to the Global Rich List, a website that brings awareness to worldwide income disparities, an income of $32,400 a year will allow you to make the cut. $32,400 amounts to roughly:

  • 28,360 euros
  • 2.4 million Indian rupees
  • 224,969 Chinese yuan

So if you’re an accountant, a registered nurse or even an elementary school teacher, congratulations. The average wage for any of these careers falls well within the top 1% worldwide.

Not surprisingly, it takes a much higher income to crack the top 1% of wage earners in just the United States. You’d have to make $421,926 to make the cut, according to a 2018 report by the Economic Policy Institute.

Ranking by Wealth

To reach the top 1% worldwide in terms of wealth – not just income but all you own – you’d have to possess $770,000 in net worth, which includes everything from the equity in your home to the value of your investments. That’s equal to roughly:

  • 671,451 euros
  • 56.3 million Indian rupees
  • 5.3 million Chinese yuan

Americans rank extremely high in terms of household wages – fourth worldwide, according to the Organization for Economic Co-operation and Development (OECD) – but not as high when it comes to median wealth. In fact, the Credit Suisse Global Wealth Databook ranks the U.S. just 25th by this measure.

There are a number of reasons for this disparity. One is that U.S. consumers tend to rely on credit more than their counterparts in, say, Europe. The typical American adult carries $60,205 in debt, according to the Credit Suisse data.

And the latest data reveal massive and growing income inequality in the United States: In a 2017 paper, economist Edward N. Wolff used Federal Reserve data to show that the top 1% of U.S. households have more wealth than all the households in the bottom 90% combined.

Source: Washington Post chart

Even so, many middle-class Americans who have spent years paying down their mortgages and saving for retirement belong to the upper echelon of the world’s wealthy.

Pervasiveness of Poverty

The bar to enter the top 1% wouldn’t be this low were it not for the extreme poverty that so much of the globe endures. For example, the average adult in India has $7,024 in total wealth, according to a report by Credit Suisse. The average wealth of adults in Africa is even lower, at just $4,138.

Compare that to the wealth of $403,974 for the average adult living in the United States and $144,903 for Europeans. Now, it’s true that the term “average wealth” can be misleading, especially for countries where assets are so skewed toward the ultra-rich, like the United States. But even the median U.S. wealth of $61,667 – that’s the amount where half of people have more and half have less – far outpaces other parts of the globe.

The Bottom Line

The term “top 1%” of global income may sound like an exclusive club, but it’s one to which millions of Americans belong. It’s a reminder of just how prosperous developed countries are compared to the vast majority of other people who share our planet.

Investopedia

[Editor: for more balance on inequality go here and here]

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Mike Kapic