Monday, January 16, 2017

Is the hysteria about inequality overblown?

Oxfam are releasing a report this afternoon belly-aching about the disproportionate amount of wealth owned by the richest New Zealanders. Andrew Little is already on the band-wagon blaming National.

While 'wealth' and 'incomes' are not an exact match, in the interests of balance:

For those who like to look at the bigger picture the accompanying text is interesting:

The long-run perspective in Figure J.7 can tell more than one story.  Taking the end of the “great compression” (1950 to 1980) as the starting point, the conclusion is that for the five English-speaking countries in the graph, inequality (understood as the share of income received by the top 1%) increased strongly to 2011. With the 1920s as the starting point, the “great compression” can be seen as the “aberration” and now the distribution has returned to where it was ninety years ago.



Jim Rose said...

The New Zealand top 1% are just bone lazy, grabbing the same share of income as they had 50 years ago. Their income fell during the years of stagnation in the 1970s but recovered again when the economy started growing again in the 1990s.

Anonymous said...

Just goes to show what any decent macroeconomist knows: NZ needs more "inequality", not less.