Bold prediction: Rising
inequality of income and wealth will be the most important political
battleground over the next few decades.
Just take a look at the figures. The share of income accruing to the top 1 percent increased from 9 percent in 1976 to 20 percent in 2011. The richest 0.1 percent controlled
7 percent of the wealth in 1979 and 22 percent of the wealth in 2012.
Meanwhile, there are a number of studies out there showing that the most
effective way to reduce this inequality would be higher taxes on income
and wealth, but the rich won’t let it happen.
Consider also this:
The rise of income inequality and wealth inequality are intimately
connected, and causes all sorts of problem over the long term. As
Emmanuel Saez and Gabriel Zucman write,
Income
inequality has a snowballing effect on the wealth distribution: top
incomes are being saved at high rates, pushing wealth concentration up;
in turn, rising wealth inequality leads to rising capital income
concentration,which contributes to further increasing top income and
wealth shares.
