The Income Inequality of the 21st Century

The 2008 world economic crisis had, and continues to have deepening effects in many parts of the world. The United States and the United Kingdom have had a gradual recovery, while the European Union continues to struggle with a sluggish growth and high unemployment in several of its southern Member States.

This week, the World Economic Forum is to meet in Davos, Switzerland to discuss the economic state of the world. Among the headlines is the news that by 2016, the world's top one percent will own the majority of the world's wealth. Now, this may come as a surprise to some of you, but obviously not to others. Thomas Picketty's book on capital inequality mentions this growing issue, and has alarmed many on what steps to reverse it.

Among those alarmed are OXFAM. They have taken the initiative to use their influence and call to those attending the meeting in Davos on what to do next. That may seem all good-willing, but actions are stronger than what OXFAM has offered to do about the rising inequality. Lets face it, the world's economy is where it's at because of the decisions our economic "leaders" took to save ourselves from a deeper mess in 2008.

The rich are richer because of decisions made at the highest level, and with graduate degrees from the top universities in the world, I am sure they knew exactly what they were doing. It's only when those decisions start affecting the majority, and their own assets that they start to do something about it.
In the United States, President Barack Obama is about to unveil a new economic plan during his State of the Union tomorrow - Tuesday, January 19th 2016 - that aim to do several things. According to Matt O'Brien of The Washington Post, Obama first wants to tax inheritances left from capital gains.

For many years this has been a loophole on avoiding taxes, and it could help the middle-class. Second, he would like to tax couples making more than half a USD million from 23.8 to 28 percent. O'Brien notes that the 28 figure was the same when Reagan left office.

Third, setting a .07 percent tax on liabilities done by banks with at least USD 50 million would encourage them to be more careful on their economic actions. These news have led some banks to possibly breaking up - a way more them to avoid the USD 50 million mark.

Actions are needed, and business leaders need to think more holistically. Their money only goes for far, and once it is too much what good will it do if it's only accumulating and sitting in a bank? Let those who need it to send their children to school, pay a hospital bill or make a mortgage payment enjoy what money is good for, making life better.

Statistics and information for this blog post is accredited to:
President Obama finally has his Piketty moment
New Oxfam report says half of global wealth held by the 1%