Home > Plutonomy, upward income redistribution > 12-country 1975-2007 chart of share of income growth going to The 1%

12-country 1975-2007 chart of share of income growth going to The 1%

from David Ruccio

income growth

According to a new study of top incomes by the Directorate for Employment, Labour and Social Affairs of the OECD [pdf],

from 1975 up to the crisis, the top percentile managed to “capture” a very large fraction of the growth in pre-tax incomes, especially in English-speaking countries: around 47% of total growth went to the top 1% in the United States, 37% in Canada and above 20% in Australia and the United Kingdom. By contrast, in Nordic countries, but also in France, Italy, Portugal and Spain it was the bottom 99% of the population which benefited more growth, receiving about 90% of the increase in total pre-tax income between 1975 and 2007. . .

About 80% of total income growth has been captured by the top 10% in the United States, and around two thirds in Canada. In Australia and the United Kingdom, the top 10% benefited from about half of the income growth. Income growth was shared more equally in other OECD countries for which data are available, but in all cases the top of the distribution benefited from growth proportionally more than the rest of the population

  1. robert r locke
    May 8, 2014 at 10:55 am

    Thomas Piketty suggests that the closing of the gap between the top 1% and the bottom 99% after WWII might have been an anomaly, that the 19th century extremes to which we have returned recently is the new normal. But the variation between the English and non-English speaking world in this presentation suggests that If the rest of the world does not converge on the English speaking world income distribution models, then they won’t be the new normal.

  2. Bruce E. Woych
    May 8, 2014 at 1:26 pm

    CEPR (Review Study of the OECD’s data)

    Missing the Story: The OECD’s Analysis of Inequality

    “Our analysis suggests that the financial sector is an important part of that picture.
    Many of the highest incomes in the United States and other countries are earned by people in the financial sector.Insofar as the financial sector is able to pull away more
    resources than it contributes to the economy,
    these earnings will come at the expense of
    people outside the sector, contributing to their
    relative decline in income”

    http://www.cepr.net/documents/
    publications/oecd-2012-07.pdf
    Missing the Story
    The OECD’s Analysis of Inequality
    David Rosnick and Dean Baker
    July 2012

  3. Bruce E. Woych
    May 9, 2014 at 1:29 pm

    http://www.nakedcapitalism.com/2014/05/stockholm-syndrome-in-the-baltics-latvias-neoliberal-war-against-labor-and-industry.html
    Michael Hudson: Stockholm Syndrome in the Baltics – Latvia’s Neoliberal War against Labor and Industry Posted on May 9, 2014 by Yves Smith

    (excerpts: a large detailed article @ link)
    “The small Baltic republic of Latvia suffered the largest contraction of any European economy following the Great Financial Crisis of 2008. Reckless lending from Swedish banks fueling a Latvian property bubble caused the collapse…”

    “…What makes Latvia so significant is the sacrificing of their national economic interests to foreign bankers. Having employed a steady diet of neoliberal policies since recovering independence from the USSR in 1991, faced with the 2008 financial shock, Latvia proved obdurate on austerity—or more specifically, austerity for labor and bailouts for banks.”

    “Ironically, emulating Europe’s successful post-World War II development calls for not joining the eurozone as currently run by the pro-bank, anti-labor ideologues who designed the Lisbon agreements and created the euro without a central bank to monetize budget deficits to fuel economic expansion. The neoliberal version of a free market is a travesty of the classical economic tradition. It is a road to financial dependency, trade dependency, debt peonage and represents a classic case of capture to a Stockholm syndrome rather than independence.” Michael Hudson

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