In Graphs: how well the richest Top 1% have done across different countries over the past 200 years.

From a Right and Left Perspective…. Being Rich And Poor In Nations Today

Right-leaning perspective:

The question of being rich in a poor country or poor in a rich one has much to do with an individual’s economic freedom and opportunity. When examining the prosperity of a nation, one must look beyond mere GDP figures and understand the significance of income inequality and purchasing power parity. However, we must also recognize the role of the free market, as it serves as a significant driver of wealth creation and economic prosperity.

Singapore and Luxembourg may not match the GDP of powerhouses like the U.S. or China, but their wealth per person is noteworthy, a testament to the power of free markets and capitalism. Nations that prioritize economic freedom and encourage entrepreneurship often see their citizens reap the benefits.

In Russia, the income share of the Top 1% fell suddenly after the Russian Revolution of 1917, and stayed low during Soviet. After the breakup of Soviet, it took under a decade (1990’s) for Top 1% – Ruben Mathisen

In the United Kingdom, the rich did very well in the 19th century. However, in the 20th century, the income share of the Top 1% fell steadily, reaching a low-point in 1980 (7%). Since 1980, it has risen substantially again.

In the United States in the 1800s, the Top 1%’s income share was lower than in many European countries. Like the UK, the US had decreasing inequality most of the 20th century. Since 1980: Dramatic increase in the Top 1% income share. In 2021 the share is higher than in 1820.

I have been saying this for some time! That the existence of an extensive middle class was a 20th century reality, and largely an anomaly. And that we would likely cycle out of, as this country and the world continue to polarize. Note: with all the free time not sucked up by survival, what did this middle class largely do: well in America, they watched an avg of 4 hours of TV and became obese. It could not last (for various reasons). It has long boggled my mind how poorly most people use and structure their time … and in the 20th century, especially in America, we had this new middle class that had lots of time … and well, they became obese. Such an allegory of the era… .and now of course, we are entering a new era as the cycle inevitably continues. – Anna Bezovic

I think the following graph which compares the income of the top 1% with the bottom 50% during the last is more informative. – Dianelos Georgoudis

However, discussions around income inequality often revolve around redistribution rather than growth. It’s crucial to focus on economic policies that promote growth and create opportunities for all, rather than policies that simply redistribute wealth. After all, a rising tide lifts all boats.

TRUMP: “I will stop Joe Biden’s inflation nightmare, save the US economy, and I will always protect Medicare and Social Security which, for some very bad politicians, it’s under siege.” pic.twitter.com/FwKcywr7UQ

— MAGA War Room (@MAGAIncWarRoom) June 25, 2023

Indeed, the COVID-19 pandemic highlighted the vulnerability of low-income workers, many of whom found themselves unemployed and stranded. However, the solution lies not in creating more safety nets, but in fostering a resilient economy that allows for rapid recovery and job creation.

Inflation is indeed a significant concern, especially for low-income households. However, prudent fiscal policies, less government intervention, and the maintenance of a stable business environment can help combat inflation and promote economic stability.

Wealth is not only about being rich but also about ensuring everyone has the opportunity to achieve prosperity. Economic inequality can indeed lead to social instability, but addressing it requires policies that promote growth, rather than merely redistributing wealth. High crime and corruption rates often plague poor countries, indicating the need for robust institutions, rule of law, and a culture of transparency.

Declining US Competitiveness

The US economy is failing because it continues to follow a statist model hatched by DC bureaucrats & the oligarchs who control them.

"For a long time, the US was ranked as having the world’s most competitive economy…"https://t.co/6yjBspddyj pic.twitter.com/NeI0E2Ynbp

— judy morris (@judymorris3) June 27, 2023

National net wealth gives us a good indication of a country’s overall economic health. This figure is influenced by a variety of factors, including real estate prices, equity market prices, exchange rates, and liabilities. However, it also takes into account human resources, natural resources, and technological advancements, demonstrating the importance of promoting innovation, investing in human capital, and preserving our natural resources for sustainable economic growth.

Left-leaning perspective:

Evaluating whether one would rather be rich in a poor country or poor in a rich one is a complex task that requires a nuanced understanding of economic indicators beyond GDP, such as income inequality and purchasing power parity.

While nations like the United States, China, Japan, and Germany may boast high GDP figures, it’s critical to consider how this wealth is distributed among their populations. Small but wealthy nations like Singapore and Luxembourg illustrate that high per capita GDP can translate into a high standard of living for citizens, highlighting the importance of wealth distribution.

GDP alone does not account for income inequality, thus making per capita GDP and purchasing power parity essential tools for assessing citizens’ potential standard of living. The COVID-19 pandemic emphasized this reality when low-income workers in wealthy nations found themselves in dire straits, whereas some less wealthy nations managed to better support their citizens.

Higher prices for essential goods, such as food and energy, disproportionately affect low-income households, emphasizing the need for strong social safety nets and progressive policies to protect the most vulnerable during inflationary periods.

Long-term prosperity depends on not only wealth but also economic equality. Economic inequality can lead to a host of societal problems, including political instability, higher healthcare costs and mortality rates, and increased crime and corruption. Hence, policies that ensure a more equitable distribution of wealth and opportunities are essential.

Understanding a nation’s net wealth is crucial for evaluating its capacity to sustain spending and take on debt. This figure takes into account a range of factors, including real estate and equity market prices, exchange rates, liabilities, and the population’s distribution. Importantly, it also considers human resources

Comments – Threads – Links

• The US economy is failing thanks to what the current president proudly refers to as “Bidenomics,” the global de-dollarization is in progress, and our guest this week, Dr. Jerome Corsi, says we are sinking toward an unavoidable economic crash. – Man Of Memes
•  Missing from the “resilient” US economy debate: Government spending has dramatically increased since Q1 of 2022, up over 13% or over $1.1 trillion. For comparison, following the Covid excess this is a 25% higher spend rate compared to pre-Covid. Growth is again debt financed. – Sven Henrich

Get back to that pre-COVID feeling.