Chart of the Week: Sharing the Wealth: Inequality and Who Owns What
IMF Blog, December 7, 2017
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Bibliographic details
- Authors: The Editors
- Published: December 7, 2017
Overview
- Authors: The Editors
- Date: December 7, 2017
- Context: Chart of the Week from the October Fiscal Monitor focusing on wealth inequality—the distribution of wealth across households or individuals at a given time.
- Visual note: Luxury yachts in Monaco: The surge in top incomes, combined with high savings, has resulted in growing wealth inequality (photo: Eric Gaillard/Newscom).
Key findings on wealth versus income
- Wealth is more unequally distributed than income.
- For the countries listed (all part of the Organization for Economic Cooperation and Development):
- The average share of wealth held by the top 10 percent of households is 50 percent.
- The average share of income held by the top 10 percent is 24 percent.
- In the United States:
- The top 1 percent holds nearly 40 percent of total net wealth.
- Financial assets (such as equities, life insurance, and pensions) make up a large share of household wealth at the very top.
Recent trends and causes
- Wealth inequality has risen considerably in recent decades.
- The surge in top incomes, combined with high savings, has resulted in growing wealth inequality.
Fiscal policy responses highlighted
- Fiscal policy is a powerful tool for governments to address high and rising income and wealth inequality.
- The Fiscal Monitor emphasizes that equity and efficiency can and must go hand-in-hand.
- Policymakers need to consider both taxes and transfers, with many policy options available.
- The Fiscal Monitor focuses on three policy debates:
- Progressive taxation
- Universal basic income (UBI)
- Public spending on education and health
Source: Chart of the Week from the October Fiscal Monitor, as summarized on the IMF blog page "Chart of the Week: Sharing the Wealth: Inequality and Who Owns What" (The Editors, December 7, 2017).
