He notes: "Global inequality is much greater than inequality within any individual country" because much inequality between countries adds to the inequality in each country, and also because most people live in extremely poor countries, primarily countries located within three thousand miles (~4800 km) of the Equatorial belt, where it is too hot even without global warming, which scientists say will heat the world much stronger.

For example, in the world Bank's list of "GDP per capita" for 2011 figure annual income ranged from $231 in Equatorial Democratic Republic of the Congo to $171 465 in European Monaco. Second, respectively, poverty and wealth, were an Equatorial country, Burundi ($271) and the European Luxembourg ($114 232). For comparison, the figure for the USA is $48 112, and for China $5445. These few examples show how greatly varies in different countries, the per capita income, and to what extent the hot climate means poverty.

Inequality in wealth is always much larger than disparities by income, and a realistic assessment of the global distribution of personal wealth will be the following: about 1% of the richest people own about half of all personal property in the world. This 1% can be considered a modern aristocracy, because their economic impact is approximately equal to the influence of other 99% of the world's population.

Milanovich says: "Among the 1% richest people in the world we see 12 percent of the richest people in America ... and 3 to 6 percent of the richest Britons, Japanese, Germans and French. This club is in the vast majority of the "old rich", transmitting to their children their accumulated state (without taxation for many countries with no inheritance tax), and help them to create their own business often after training them in the most prestigious universities, mainly in the USA, where those children meet and make friends with other people similar to them.

For example, on 22 April 2004 in the New York Times published an article titled "When the rich fill of a higher educational institution, there are increasing concerns about justice." It was reported that 55% of freshmen at the 250 most well-known colleges and universities in the country are children of people from the top 25% by income distribution. Even in a public state school, elite University of Michigan, "this year's freshmen whose parents receive a minimum of $200,000 a year [the top 2% of Americans on the income scale], more than those whose parents have an income below the average income of $53 000 [bottom 50% of the income scale]".

The redistribution of wealth in favor of more people than a measly 1%, was primarily in "developing" countries, such as China. However, most of the world's population lives in countries in Central and South America, Africa, etc., where the richest families in the vast majority of cases the same as in the previous generation. They also, being near the equator, are members of the "club", but considerably less.

Milanovic believes that the world in General, "real income of the one percent wealthiest in the last two decades [1988-2008] increased by more than 60%, and five percent of the poorest income has not changed" — hopelessly hopelessly poor just remain poor. Maybe where they live is too hot.

Source: http://mixednews.ru/archives/36891

Tags: assessment , economy , crisis , finances