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Inequality in the Advanced Countries

  • Antimo VerdeEmail author
Chapter
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Abstract

In the advanced countries, inequality has reached immoral levels. By 2015, according to the 2017 OXFAM Report, 8 individuals held the same wealth as 3.6 billion people around the world, i.e. poorest half of humanity. The middle class is directly damaged by the very bad income and wealth distribution. Indeed, inequality is defined as the ratio between the increasing income (or wealth) of the rich and the middle class’ stagnating average income (or wealth). Inequality increases because of domestic factors (i.e. cuts of welfare state and unfavourable evolution of wages) or because of external factors such as skill-biased technological changes, outsourcing, and unfair trade. In one word: because of globalization. Thus after migration, inequality (or globalization) is another problem damaging middle class. This is important in our story. Policy maker should target the reduction of inequality: not for ethical reasons but for economic ones. In fact, the economic growth is sustained by inequality reduction. At the end of this chapter, the author suggests a proposal of a redistribution policy coordinated and funded at EMU’s level. It should be able to assure an inclusive growth (i.e. with equality and efficiency, to avoid the tradeoffs that preoccupied Okun [1975]) for all its Member States.

Keywords

Inequality Inequality causes and consequences Inequality and growth Inequality and banking crises Equality and efficiency 

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Tuscia UniversityViterboItaly

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