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How Our 1% Compares August 25, 2012

Posted by tkcollier in Economy & Business, Geopolitics.
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It’s right out of 1880s America:

In China, less than 1% of households control more than 70% of private financial wealth.

In the US today, we’re talking somewhere between 40 and 45 percent.

Globally, says, John Bussey in the WSJ, the number is “nearly 40%,” so America’s not much off the norm.

For China to truly advance and become a genuine competitive threat, the political system has to decide to divorce wealth from political power.  Otherwise we’re looking at decay and decline and a very short “Chinese century.”

US hit that moment and launched itself into a multi-decade progressive era that cleaned up a lot of things but government most of all.

As I have said many times, the world needs a small army of Teddy Roosevelts right now – but China most of all.

via Thomas P.M. Barnett’s Globlogization – Blog – China’s looming populist problem.

1% Getting Richer In European Welfare States Too March 9, 2012

Posted by tkcollier in Economy & Business, Lifestyle.
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As the chart from the Roine and Waldenström study shows, the share of income for the top 1% in these seven countries generally follows the same trend line. That means domestic policy can’t be the principal reason for the current spread between high earners and others. Since the 1980s, that spread has increased in nearly all seven countries. The U.S. and Sweden, countries with very different systems of redistribution, along with the U.K. and Canada show the largest increase in the share of income for the top 1%.

The main reasons for these increases are not hard to find. Adding a few hundred million Chinese and Indians to the world’s productive labor force after 1980 slowed the rise in income for workers all over the developed world. That’s the most important factor at work. The top 1% gain relatively because they are less affected by the hordes of newly productive workers.

But the top 1% have another advantage. Many of them have unique skills that are difficult to replicate. Our top earners include entrepreneurs, rock stars, professional athletes, surgeons and lawyers. Also included are the managers of large international corporations and, yes, bankers and financiers

via Allan Meltzer: A Look at the Global One Percent – WSJ.com.

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