Inequality between countries in the past, present and future
The rising global inequality in the 19th century was simply a reflection, in numbers, of the greatest ever divergence in power between two parts of the globe: the West and the Rest (see the graph). You could not discuss these numbers without realizing that the rising between-country inequality “explained” or “reflected” (both are probably true) the 1840s Opium Wars and the Indian Rebellion of 1857. Behind increasing within-national inequalities was the class struggle: the Revolution of 1848 and the Emancipation of serfs in 1861.
Then the high plateau of global inequality in the middle of the 20th century showed us the newly-parceled three worlds: the first world of rich capitalist countries; the second world of socialism; and the third world of Asia, Africa and Latin America.
[…]And finally, and most recently, the decrease in global inequality is simply the translation for the rise of populous Asian countries. This mirrors the Industrial Revolution: the center of economic gravity is tilting towards one region, the losing areas are deindustrializing, and as Asia catches up, global inequality is reduced. Political and economic implications of this change are obvious to all: the US vs China conflict is written there in scarlet letters. You do not need to look for its causes in politicians’ speeches.
On the role of economics and global inequality
By: Branko Milanovic – The Graduate Center, CUNY
Inequality vs lack of opportunity
The Archbridge Institute in 2020 conducted a survey on how Americans view the American Dream and Economic Mobility. Some of the findings include:
- For most Americans, ensuring a fair chance to succeed and reducing poverty is more important than reducing income inequality.
- Just 26% consider “Ensuring Americans do not live in poverty” as the most important goal of public policy!
Inequality/opportunity survey
By: John Cochrane – Stanford University
