Category Archives: inequality

Is the world a ‘plutonomy?’

Published on Oxfam America’s Politics of Poverty blog

Who dominates the global economy – and why that matters for you and me!

I recently saw the word ‘plutonomy’ in the title of an international relations academic article. It’s an intriguing and unfamiliar word, and its definition is causing me to ask some probing questions about our global economic order.

For those uninitiated like me, plutonomy describes an economy where the share of consumption and economic activity by the rich dwarfs everyone else. It’s a system where a small minority control most of the wealth and income, and consume nearly all the goods and services. Some might argue that the U.S., the UK and Canada approximate plutonomies. Continue reading →

You can’t have one without the other: Reducing extreme poverty depends on inequality

Published on Oxfam America’s Politics of Poverty blog

Looking at projections in 10 countries.

For the most part, we anticipate that countries will grow their economies in the coming years. Growth means more financial resources available to reduce extreme poverty by creating jobs, increasing social services, and building stronger safety nets. However, if governments fail to ensure the benefits of growth are shared with the most vulnerable, then poverty reduction will be minimal. This can happen if the benefits of growth only accrue to the richest.

Continue reading →

Eight Ways To Reduce Global Inequality

Published at Inequality.org

Co-authored with Dr. Marjorie Wood

Extreme economic inequality is corrosive to our societies. It makes poverty reduction harder, hurts our economies, and drives conflict and violence. Reversing this trend presents a significant challenge, but one where we’ve seen some progress. Below we offer eight ways to move the world forward in reducing global inequality.

1. Stop Illicit Outflows Continue reading →

Don’t miss the big picture: Oxfam highlights inequality because #WealthIsPower

Published on Oxfam Great Britain’s Mind the Gap blog

Don’t let the technical debate overshadow Oxfam’s real message.

Some critics of our work have asked why we looked at wealth, especially given the difficulties of measuring how it is distributed globally. Also, some charge that by only looking at wealth inequality, we’re missing the great reduction of extreme poverty that has taken place over the past couple decades as wages among the world’s poorest have risen, particularly in China and India.

Continue reading →

Guess what critics? Oxfam is right about the top 1%

Published on Oxfam America’s Politics of Poverty blog

Even without the bottom decile, they own half of global wealth.

Ricardo Fuentes-Nieva and I shocked the world last year with our calculation that therichest 85 people held the same amount of wealth as the poorest half of humanity. We also determined, using Credit Suisse’s data, that the richest one percent owned more than 45 percent of all global wealth.

Continue reading →

Ebola and the scourge of inequality

Published on Oxfam America’s Politics of Poverty blog

Failure to act will worsen the divide between poor and rich countries.

Ebola looms like an ominous cloud over western Africa. For me, it’s a stark reminder of the extremely unequal world we live in, which is becoming worse instead of better.

Inequality has been in the news and on the talking points of elected officials in recent years. The financial crisis spurred attention to the increasing concentration of wealth among the one percent, and the falling prosperity of practically everyone else.

Continue reading →

The myth of inequality myths

Published on Oxfam America’s Politics of Poverty blog

Serious critics of inequality are not using the arguments that “The Right” would have you think.

Apparently those warning that inequality is both out of control and corrosive to our society have been championing erroneous notions. Michael Tanner of the Cato Institute points out these myths in a blog he wrote last week entitled, “Inequality Myths.” Continue reading →

The power of myth in economic policymaking: New IMF research debunks dogma

Published on Oxfam America’s Politics of Poverty blog

Is there an ideological sea change occurring at the International Monetary Fund when it comes to redistribution, inequality, and economic growth?

Here are three dangerous economic myths about the world in which we live:

#1  The Rich-Drive-The-Economy Myth: Taxing the rich to give to the poor hurts the economy because it stifles economic growth.

Continue reading →

Why did Oxfam target the billionaires at Davos?

Published on Oxfam America’s Politics of Poverty blog

It’s time they pay their taxes, stop using wealth to influence politics.

Whew! What a week for Oxfam!

On Monday, we released a new report on global inequality, “Working For the Few: Political Capture and Economic Inequality,”  targeted at the participants attending the World Economic Forum in Davos this week. These folks represent the global economic elite – the real movers and shakers of the world economy who heavily influence economic policymaking.

The media response has been overwhelming. Here’s a sample: Continue reading →

Stand up for (measuring) vertical inequality

Published on Oxfam America’s Politics of Poverty blog

Global development leaders need better data to keep their eyes on the 1%.

150px-Cat_post2015How should the world measure and address inequality for a post 2015 development framework?

This question was the focus of last week’s forum at the Center for Global Development. The event was timely, given theUnited Nations General Assembly is convening this week in New York, and an important discussion concerns what will supersede the Millennium Development Goals (MDGs) when they expire. Continue reading →