What Donald Trump doesn # 39; understand trade
Paul Krugman often mentions that the American super rich are rich 19th century look poor We know what John D Rockefeller, the richest man in Gilded Age America in 1894 Jan. 25 million, nearly 7000 times the average per capita income the United States at the time Krugman But making it a simple stingy by modern standards James Simons, a hedge fund manager, won July 1 billion more than 38,000 times the average income.
Although these extremes can occur on continental Europe with its social market economy and social solidarity The authors of the policy Insight # 4 shows that although income inequality in Germany is far from achieving the US proportions, the trend is in this rich get richer towards Germany and its super-rich become super rich inequality of market income in Germany, as measured by standard synthetic indicators such as the coefficient Gini, moderately increased over the period 1992-2001 This is consistent with those reported in previous studies to incorporate both income distribution tails However, we found that the standard summary measures of inequality disguise significant changes in the distribution of a share of market revenue, one-third of the German population receives Bottle Nearly ue no market income, and the share of market income going to deciles has fallen sharply since the early 1990s as a result, the median income of December lined market significantly, both in absolute terms and relative to income way.
The inequality of market incomes in East Germany increased more than in the West and the decline of the median income market was particularly severe in the eastern This is a probable consequence of the sharp decline in the full-time employment and increasing unemployment in eastern Germany demographic and economic forces, such as changing focus on technology skills and globalization seem to Germany to influence the distribution of market income more increasing unemployment and the reduction of working time by increasing income gaps across the majority of full-time workers.
On the other hand, the average income deciles increased significantly in Germany, compared to overall average income The average real income of Germany's economic elite-has increased by about a third between 1992 and 2001, super rich did even better, as they have seen their market revenues increased by more than 50 in real terms composition according to sources income is very different for the top of the income hierarchy and the rest of the population German dominance of entrepreneurs and capitalists in higher income groups seems to be much stronger in Germany than in the US or France, however, the rapid increase in the share of wage income in the German upper income groups suggests that a convergence process could have started.
Portal of the policy of the German income inequality VOX CEPR, German, income, inequality, politics.