income-inequality

It’s difficult to assess the net worth of the world’s super-rich. Havens like the Cayman Islands, Switzerland and Hong Kong are happy to stash their cash, offering privacy and a shelter (often perfectly legal) from taxes. And without knowing how rich the rich are, we can’t make an accurate assessment of income inequality.

Imagine four people sharing an apple pie. In an equal world, the four each get a quarter of the pie. But in America, the rich person at the table – a corporate executive, say – is getting a bigger slice each year, while the others’ pieces are shrinking.

America’s recovery from the Great Recession of 2007-2009 has been a languid affair. A 2017 paper from the Federal Reserve Bank of St. Louis blames anemic labor productivity growth.

In the old days, according to popular allegory, you worked for a company most of your life. At retirement, that firm rewarded you with a pension, a guaranteed income for your golden years. These days, retirement planning is a bit more complicated. Fewer employers offer defined-benefit pension plans. Instead they require employees to parse byzantine literature and make life-altering choices for themselves. And more options are available than ever before.

While debates about financial inequality generally focus on individual earnings and wealth, a new study suggests the value of public health insurance should be considered when examining the distribution of income in the United States.

Half of Americans have almost no savings, according to a May 2016 survey by the Federal Reserve. For such people, car trouble or a toothache can trigger financial ruin.