Editor's Note: Dr. James M. Lindsay is a Senior Vice President at the Council on Foreign Relations and co-author of America Unbound: The Bush Revolution in Foreign Policy. Visit his blog here and follow him on Twitter.
By James M. Lindsay, CFR.org
Growing income inequality in the United States has attracted a lot of comment. But figures from the Organisation for Economic Co-operation and Development (OECD) show that greater income inequality is not a U.S.-only phenomenon. Income inequality is up across rich countries.
Economists use something called the Gini coefficient to measure inequality. It is a scale that runs from zero to one, with zero indicating total equality (everyone makes the same amount) and one indicating total inequality (that is, one person gets all the income and everyone else gets nothing). As the chart above shows, the Gini coefficient rose over the last quarter century in seventeen OECD countries.
What may be most remarkable about the numbers is that income inequality was up not just in traditionally higher income-inequality countries such as Mexico, the United States, and Israel, but also in traditionally lower income-inequality countries such as Germany, Finland, and Sweden.
The fact that income inequality is up almost across the board might seem to suggest that globalization and technology are to blame rather than the specific tax, spending, and regulatory choices that individual countries make. After all, globalization and technology are universal in their impact while countries follow very different national economic policies.
The OECD’s economists, however, say that the jury is still out on the causes of greater income inequality. Which brings to mind something I read once to the effect that if you lay all the world’s economists end to end you will never reach a conclusion. So let the argument continue.
The views expressed in this article are solely those of James M. Lindsay.
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
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Lindsay, what you are posting Today is what is awaiting for the Majority of Americans to Rally on Mass in all over its States and the rest of the World will do the same. But, we don't know when it will happen. Probably. after a long time, like a time Bomb.
Remember, when the Arab Spring happened, U.S managed to reconcile them. But, who will reconcile among Americans??? Honestly, no one. They all make US friend for their own advantages.
The Arab-Spring caused by poor/Anarchy leadership and imbalance Standard of living. But, in U.S, we have good/Democratically elected Leader. However, imbalance/unequal Standard of living will fit US with the Arab-Spring.
The predicted consequences...., we have excellent, Democratical Government, but we have very bad record on INEQUALITY of standard of living among Americans, that will strike US for long time to come.
The figures seem to reflect a shrinking (disappearing ?) of the employed middle class. And the ability for business owners/exectutives to increase their salaries at the expense of stagnating that of their employees.
The income inequality has the intricacies of the high-end job market in the OECD-countries to thank for. Many countries suffer a shortage of highly skilled labour in scientific and technical fields. Not every candidate has the abilities of applying scientific knowledge to practical problems.
It may also be that jobs other than productivity have been created to "guide, govern, administer and account for the same number of manlabor" ...and also register, insure and in general herd off this divindling manpower. EU ideal was to industrialize all member countries with high VAT positions. Well if so who would produce the basics like food. The answer was than inbread in the EU culture as well as USA culture. There was an inflow of voluntary immigrants who would do anything.Not quite "slave labor"...But overlooked. These were not the problems we face now. The problem was a more basic miscalculation. The so highly idio...idealist countries thought that if they created a highly technological system bread and bacon would fall dawn like manna. Plus the unreliable wheather ...here we are. Well in summary food grows on trees and land. You can not put bread on an account and eat its interest. I think the major problem realy was that all these big industrial heads did not know where grain comes from.
So there‘s a worldwide phenomenon of inequality and America want to put a 1%ter in the White House?! Occupiers,the struggle still continues!!
The initial reaction we have when understanding that the world is not ideal is intriguing. What side will we choose? If you want an illustration of this notion go to youtube and enter in “Ed Shaughnessy vs Buddy Rich”.
When I was in early grades of high school we were made to read a short storyfrom Ibsen about children who collected flowers fallen from one tree. At first all the children collected as much as they can. And when all the flowers on the ground were finished the stronger children got the flowers from the hands of others.This is not a story on the government of human kind. This is just a fact on the social level of people in common. Take a flash forward on the general management of people (moraly, economically, legally, etc) you will not see any difference from the Herodotus history – well may be slight changes. I may be over sarcastic tonight simply because I just watched the Inside Man. I honestly believe humanity is not mature enough to refrain from being a scavanger. And well democracy, or whatsoever is not advanced enough to overcome these natural tendencies. Say we are not evolved as much as roaches. Give us Humanity more time. We are better off than the middle ages.
WOW, nasty childhood.
In August 1910 Theodore Roosevelt reflected that there have been “two great crises in our country’s history: first, when it was formed, and then, again, when it was perpetuated … .” The third great crisis is upon us, the struggle “to achieve in large measure equality of opportunity.”
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Thanks.
In as much as I share the opinion that globalization and technology are top indicators for growth in income inequality; traditional values, economic growth and countries policies ranging from spending to monetary controls are also to blame.
Individuals tend to tilt towards policies that favor them and the few rich had more grip on the wealth of many.
Individual leaders and their couple of rich and strong supporters still have the power to unbalance the world's peace. This does not only occur in third world countries. Take an objective view of your homeland first.