The Daily Scoop: OECD report cites increasing income inequality in U.S.

This current Organization for Economic Cooperation and Development (OECD) report along with the Congressional Budget Office’s report examining income gaps in the U.S. strains the credibility of the Republican Party’s and Grover Norquist’s anti-tax political stance. These two reports challenge the viability of such policies which benefit the highest income brackets and the adherence to the “no taxes on the job creators” platform.

Income inequality in the United States is rising and is now greater than in all developed countries other than Chile, Mexico and Turkey, according to a new report.

The report released Monday by the Organization for Economic Cooperation and Development indicates that income inequality has increased in almost every developed country in the last 30 years, and has continued to rise since the global financial crisis. Among the few countries where inequality has decreased in the last 30 years are Ireland, France, Greece and Turkey.

In the United States, the average income among the richest 10% is 14 times greater than the average income among the poorest 10%, up from a 10 to 1 ratio in the 1980s. The countries where the ratio between the incomes of the top 10% and the bottom 10% is the lowest — around 5 to 1 — are Denmark, the Czech Republic, Belgium and Norway.
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3 Comments to “The Daily Scoop: OECD report cites increasing income inequality in U.S.”

  1. Last summer Time magazine commented that the London riots should have been expected because England’s Gini coefficient was 0.38 indicating significant income disparity. At the same time the US Gini coefficient was approaching 0.50! Is it no wonder that this is happening as the only significant force able to diminish wealth disparity and level the playing field is government and the world over we see corporations buying out politicians wholesale.

    • It is really something the government needs to address as information like this illustrate a regression towards an environment similar to the late 1800’s to early 1900’s where the vast majority of the country’s wealth was concentrated in the hands of very few people.

      Thanks for the comment.

  2. The wealth gap is real and growing wider.

    The problem isn’t that the rich are getting richer. The problems is that the rich aren’t plowing all that wealth back into the economy. That is having a negative impact on overall economic growth.

    The question is how do we get the wealthy to plow their excess wealth back into growing the economy? That is not easy to answer.

    On a fool thinks that government playing Robin Hood is the solution.

    Governments are the most inefficient, squanderers of wealth of them all! Giving wealth to governments to spend is a lot like throwing it down a rat hole.

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