Imagine a world so unbalanced that just 26 people hold more wealth than the poorest half of humanity combined, a staggering reality that defines our era of extreme income inequality.
Key Takeaways
- The global Gini coefficient for pre-tax income inequality reached 0.72 in 2022, indicating extreme disparity where the top 10% hold 52% of income while bottom 50% hold 8.5%
- In 2021, worldwide wealth inequality saw the richest 1% owning 45.8% of global net worth, up from 42.5% in 2010, per Credit Suisse Global Wealth Report
- Globally, 26 billionaires held more wealth than the poorest 3.8 billion people combined in 2023, according to Oxfam's report on inequality
- US Gini coefficient for household income after taxes and transfers was 0.39 in 2021, Census Bureau data
- In the US, top 1% income share reached 20.2% in 2020, up from 10% in 1980, World Inequality Database
- US wealth inequality: top 10% hold 69% of total wealth in 2022, Federal Reserve SCF
- In EU-27, Gini coefficient for equivalised disposable income was 29.6 in 2021, Eurostat
- Top 10% income share in France was 32.5% in 2021, WID
- UK Gini for income after taxes/transfers rose to 35.6 in 2021/22, ONS
- China's Gini coefficient peaked at 0.49 in 2008 but fell to 0.37 in 2021, NBS data
- India top 10% income share 57.1% in 2022, highest in Asia, WID
- Japan Gini for disposable income 33.4 in 2021, lowest among large Asian economies, Statistics Bureau Japan
- World Gini coefficient declined from 68.7 in 2003 to 64.9 in 2013 due to Asia growth, but stalled since, World Bank PovcalNet 2020 update
- US top 1% income share rose from 10% in 1980 to 19% in 2020, driven by tax cuts, Piketty/Saez 2022
- Global top 10% income share stable at 52% 2000-2020, but within-country rose, WID World Inequality Report 2022
Income inequality shows extreme global wealth concentration at the very top.
Asian Inequality
- China's Gini coefficient peaked at 0.49 in 2008 but fell to 0.37 in 2021, NBS data
- India top 10% income share 57.1% in 2022, highest in Asia, WID
- Japan Gini for disposable income 33.4 in 2021, lowest among large Asian economies, Statistics Bureau Japan
- Indonesia Gini 0.38 in 2022, BPS data
- South Korea top 1% income share 15.4% in 2021, up from 10% in 2000, WID
- Philippines Gini 0.42 in 2021, highest in SE Asia, PSA
- Thailand Gini declined to 35.4 in 2021 from 43 in 2000, NSO
- Vietnam Gini 35.7 in 2020, GSO
- Bangladesh top 10% income share 40% in 2022, BBS/WID
- Malaysia Gini 0.41 in 2022, DOSM
- Pakistan Gini estimated 0.33 in 2018, latest PBS data
- Singapore wealth Gini after imputation 0.72 in 2019, highest globally, DOS
- Top 1% in India captured 22% of national income in 2022, WID
- Iran's Gini 0.40 in 2019, SCI data
- Myanmar Gini 0.43 pre-2021 coup, MPI
- Sri Lanka Gini 0.39 in 2019, DCS
- Top 10% in Japan hold 24% income in 2021, Cabinet Office
- Nepal Gini 0.32 in 2019, CBS
- Top 1% South Korea wealth share 25% in 2021, BOK
- Cambodia Gini 0.36 in 2019, NIS
- Laos Gini 0.36 in 2018, LSIS
- Mongolia Gini 0.32 in 2021, NSO
Asian Inequality Interpretation
Asia's economic storybook is a tale of dizzying contrasts, where India's top tier feasts at a banquet growing far faster than the dining hall, while Japan meticulously ensures everyone gets a precisely measured slice of a pie that itself isn't getting much bigger.
European Inequality
- In EU-27, Gini coefficient for equivalised disposable income was 29.6 in 2021, Eurostat
- Top 10% income share in France was 32.5% in 2021, WID
- UK Gini for income after taxes/transfers rose to 35.6 in 2021/22, ONS
- Germany S80/S20 ratio was 5.2 in 2021, Destatis/Eurostat
- Italy's Gini coefficient hit 33.2 in 2022, highest in Western Europe, ISTAT/Eurostat
- In Spain, top 1% income share 12.5% in 2020, up from 9% in 2000, WID
- Sweden's post-tax Gini was 27.6 in 2021, lowest in EU but rising, Statistics Sweden/Eurostat
- EU top 20% income 5.3 times bottom 20% in 2021, Eurostat
- Netherlands Gini 26.3 in 2021, among lowest, but wealth Gini higher at 72%, CBS/Eurostat
- Poland Gini fell to 27.0 in 2021 from 32 in 2008, GUS/Eurostat
- Top 10% wealth share in UK 57% in 2018-2020, ONS Wealth Survey
- In Greece, Gini rose to 32.3 in 2022 post-crisis, ELSTAT/Eurostat
- Austria's S80/S20 4.9 in 2021, Statistik Austria
- Belgium top 1% income share 11.8% in 2021, WID
- EU regional inequality: Gini within countries averages 0.30, but between regions higher, ESPON
- Finland Gini 25.5 in 2021, Statistics Finland
- Portugal Gini 32.1 in 2021, up 2 points since 2014, INE/Eurostat
- Denmark's post-tax Gini 26.3 in 2021, lowest in EU, DST
- Ireland Gini 29.2 in 2021, driven by housing, CSO/Eurostat
- Top 10% in Switzerland income share 35% in 2021, highest in Europe, FSO/WID
- Norway wealth Gini 80 in 2020, SSB
- Czechia Gini 24.8 in 2021, CZSO
- Hungary Gini 28.1 in 2021, KSH
- EU-15 Gini averaged 29.5 in 2021 vs EU-13 29.0, converging, Eurostat
European Inequality Interpretation
Across Europe, the richest are pulling away so decisively that the Scandinavian model is starting to look less like a beacon of equality and more like the continent's last, best bargain.
Global Inequality
- The global Gini coefficient for pre-tax income inequality reached 0.72 in 2022, indicating extreme disparity where the top 10% hold 52% of income while bottom 50% hold 8.5%
- In 2021, worldwide wealth inequality saw the richest 1% owning 45.8% of global net worth, up from 42.5% in 2010, per Credit Suisse Global Wealth Report
- Globally, 26 billionaires held more wealth than the poorest 3.8 billion people combined in 2023, according to Oxfam's report on inequality
- The international income Gini coefficient between countries was 0.65 in 2019, reflecting high cross-border inequality, World Bank data
- In 2020, the top 10% of global population captured 52% of global income growth since 1980, per World Inequality Lab
- Global labor income inequality Gini fell from 0.68 in 1980 to 0.62 in 2020 but remains high, ILO and WID analysis
- By 2022, 1% of the world's population controlled more than 45% of global wealth, UBS Global Wealth Report
- The global Palma ratio (top 10% income share over bottom 40%) averaged 2.1 in 2021 across countries, UNU-WIDER
- In 2019, 71% of global wealth was held by 10% of adults, per Credit Suisse
- Global top 1% income share rose from 10% in 1980 to 20% in 2022, World Inequality Report
- Bottom 50% global income share stagnated at 9% from 2000-2020, WID data
- Global wealth Gini coefficient was 0.89 in 2022, highest on record, UBS report
- In 2021, 2,755 billionaires held $13.1 trillion, more than 4.6 billion people, Oxfam
- Global interpersonal income inequality Gini at 0.63 in 2018, PovcalNet World Bank
- Top 0.1% captured 11% of global income in 2022, up from 7% in 1980, WID
- Global middle 40% income share declined to 44% in 2020 from 48% in 1990, World Bank
- In 2023, 85 billionaires had more wealth than 3.5 billion poorest, Oxfam
- Global income share of top 10% averaged 55% in 2021, WID
- Wealth of top 1% grew 34% since 2020 pandemic, while bottom 50% grew 0.7%, Oxfam 2023
- Global Gini for disposable income was 0.58 in 2019 across 80 countries, OECD
- Top 10% own 76% of global wealth in 2022, Credit Suisse
- Global bottom 50% wealth share is just 2% in 2023, UBS
- In 2020, global top 1% income share hit 19%, World Inequality Lab
- Global Palma ratio reached 2.5 in 2022 for many regions, UN data
- 82% of all wealth generated in 2017 went to top 1%, Oxfam 2018 report
- Global income inequality between countries fell from Gini 0.70 in 2000 to 0.62 in 2020, World Bank
- Top 0.01% global income share doubled to 4% since 1980, WID 2022
- In 2021, 10 richest men doubled their fortunes while 99% poorer, Oxfam
- Global wealth concentration: top 1% holds 51% of wealth in 2023, UBS
Global Inequality Interpretation
The global economy has become a meticulously rigged casino where a handful of players hold over half the chips while billions are left betting with the lint in their pockets.
Trends and Policy
- World Gini coefficient declined from 68.7 in 2003 to 64.9 in 2013 due to Asia growth, but stalled since, World Bank PovcalNet 2020 update
- US top 1% income share rose from 10% in 1980 to 19% in 2020, driven by tax cuts, Piketty/Saez 2022
- Global top 10% income share stable at 52% 2000-2020, but within-country rose, WID World Inequality Report 2022
- EU Gini stable at 30 since 2010, but post-COVID rose 1 point, Eurostat 2023
- China's inequality peaked 2008, Gini fell 12 points to 37 by 2021 via redistribution, NBS/WID
- Latin America Gini fell from 52 in 2000 to 46 in 2020, fastest decline globally, CEPAL
- US wealth Gini rose from 0.80 in 1989 to 0.85 in 2023, Fed data
- Global billionaire wealth share doubled from 1% to 3% of global wealth 1995-2023, UBS
- India top 10% share surged from 35% in 1980 to 57% in 2022, WID
- Minimum wage increases reduced US Gini by 1-2 points in states 2013-2019, CBO
- Global interpersonal Gini fell 10% 1990-2015 due to poverty reduction in Asia, World Bank 2019
- UK top 1% income share down from 24% in 1918 to 13% in 1970s, then up to 15% 2020, IFS/WID
- Tax progressivity explains 20% of decline in top 1% shares in rich countries 1910-1980, Piketty 2014 update
- Post-2008, global inequality trends diverged: falling between countries, rising within, IMF WEO 2020
- US wage premium for college grads doubled from 1979-2019, contributing 30% to inequality rise, BLS/EPI
- Automation/tech accounted for 50% of US income polarization 1980-2010, Autor et al. NBER
- Progressive taxation reduced OECD Gini by average 25% in 2020, OECD IDD
- Global projection: without policy, top 1% share to 24% by 2050, WID scenarios
- Brazil Gini fell 15 points 2001-2014 via cash transfers, but rebounded post-2015, IBGE/WID
- COVID-19 increased global Gini by 1-2 points in 2020, World Bank PSP 2022
- Union density decline explains 10-20% of rising inequality in US/EU 1980-2020, OECD
- Offshoring doubled top 10% income shares in advanced Asia 1990-2015, Rodrik analysis
- Universal basic income pilots reduced Gini by 5-10% locally, GiveDirectly/Stockton trials 2019-2023
Trends and Policy Interpretation
While the global tide of inequality is slowly receding thanks to Asia's remarkable rise, the lifeboats within our nations are becoming alarmingly exclusive, with the wealthy hoarding the oars as the water climbs higher for everyone else.
US Inequality
- US Gini coefficient for household income after taxes and transfers was 0.39 in 2021, Census Bureau data
- In the US, top 1% income share reached 20.2% in 2020, up from 10% in 1980, World Inequality Database
- US wealth inequality: top 10% hold 69% of total wealth in 2022, Federal Reserve SCF
- Bottom 50% of US households own just 2.6% of total wealth in Q3 2023, Fed data
- US top 0.1% income share was 8.7% in 2019, IRS and Piketty/Saez data
- In 2021, CEO pay at S&P 500 firms was 272 times median worker pay, AFL-CIO
- US Gini for market income hit 0.50 in 2020, CBO analysis
- Top 400 US families' income share grew from 1% in 1980 to 2.5% in 2018, IRS SOI
- US racial wealth gap: White families have 8 times wealth of Black families in 2019 ($188k vs $24k median), Fed SCF
- In 2022, US top 1% captured 22% of all income growth since 1979, EPI analysis
- US 90/10 income ratio was 16.7 in 2021, OECD data
- Billionaire wealth in US surged 88% to $5 trillion since 2020, Forbes
- US Palma ratio reached 2.4 in 2020, top 10% income over bottom 40%, Census
- Top 10% US households hold 93% of stocks' value in 2023, Fed DFAB
- US income share of bottom 20% fell to 2.9% in 2021 from 4.1% in 1979, Census
- In 2018, US top 1% earned average $1.5 million, 39 times bottom 90% average, Piketty/Saez/Zucman
- US Gini rose from 0.35 in 1979 to 0.41 in 2021 post-transfers, CBO
- Corporate stock ownership: top 10% own 89% in 2022, Fed
- US wage inequality: 95/50 ratio increased 20% from 1979-2019, EPI
- Top 0.01% US income share hit 4.5% in 2019, WID
- US median wealth for top 10% is $3.8M vs $38k for bottom 50% in 2022, Fed SCF
- In 2021, US after-tax Gini was 0.38, highest since 1980, Census
- US top 5% income share 23% in 2020, IRS data
- Gender pay gap contributes to US inequality: women earn 82 cents per dollar men in 2022, BLS
- US intergenerational mobility: child in bottom quintile has 7.5% chance to reach top, Chetty data
- Top 1% US wealth share 32% in 2023, Fed
- US 99/1 income ratio exploded to 81 in 2020, Piketty/Saez
US Inequality Interpretation
The statistics paint a portrait of an American economy where the top 1% has won the lottery twice over while the bottom half is stuck trying to buy a ticket with pocket lint.
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