Countries with the biggest income gaps – 24/7 Wall St.
The wealth gap between the richest and the poorest tends to widen whenever there is a radical change in the economy. The deficit began to widen in the mid-19th century, at the dawn of the Industrial Revolution, and by the end of that century it had turned the rich rich – figures such as Andrew Carnegie, JP Morgan and John D Rockefeller – in symbols. of fear and contempt.
In our time, as technology has reformed the economy and made the privileged few rich beyond measure, billionaires such as Mark Zuckerberg, Jeff Bezos, and Elon Tesla have become household names – though those names are sometimes pronounced with derision. (In the United States, these are the 25 cities with the most billionaires.)
Income inequality is often mentioned in the United States. But it’s more than an American problem. To find the 50 most unequal countries in the world, 24/7 Wall St. reviewed the global inequality database World Inequalities Report 2022, which ranks countries according to the ratio of the richest 10% of average income to the poorest 50% – or T10 / B50.
Click here to see the countries with the biggest income gaps
Wide disparities in wealth exist on all continents, but they are more pronounced in Africa and Asia. Many countries in these regions suffer from a legacy of colonization and protracted civil strife. Despite an abundance of resources in some of them, government corruption has placed wealth in the hands of a few, and mismanagement of income from energy resources has not been spent on infrastructure, the system health or education.
Other countries, such as those on the Arabian Peninsula and Ghana in Africa, have harnessed their resources to stimulate rapidly developing economies. But the benefits of economic development have not necessarily reached all segments of society. (Income equality is far from achieved, even in the 15 richest countries in the world.)
To find the 50 most unequal countries in the world, 24/7 Wall St. used data on income, wealth and inequality from the global inequality database World Inequalities Report 2022. Countries were ranked based on the ratio of the highest 10% average income to the lowest 50% average income – or T10 / B50. For example, in the United States, the richest 10% earn on average 17 times more than the poorest 50%. All 174 countries in the report were included for pre-tax income data, and all data is as of 2021.
Data on the wealth gap and average income also come from the report and reflect the 150 countries for which data were available. Average income is defined in the report as “the sum of all pre-tax personal income streams accruing to owners of factors of production, labor and capital, including social insurance benefits (and removing the corresponding contributions), but excluding other forms of redistribution (income tax, social assistance benefits, etc.) ”The report uses purchasing power parity for the inequality estimates. The estimates correct for inflation using the national income deflator (base 2021).