Global Inequality and the double decker bus

According to Oxfam, half of all the world's wealth is owned by 85 people, who could all fit onto a single double-decker bus.

It's an astonishing suggestion, and worth your time to consider the implications.

It's always worth noting the difference between income (a flow of funds) and wealth (which is a total stock of previous income). The distribution of income is not as unequal as the distribution of wealth, but that's not much comfort.

The Guardian covers the story. Here's Oxfam's press release, as reported by the Huffington Post:

“We cannot hope to win the fight against poverty without tackling inequality. Widening inequality is creating a vicious circle where wealth and power are increasingly concentrated in the hands of a few, leaving the rest of us to fight over crumbs from the top table.

In developed and developing countries alike we are increasingly living in a world where the lowest tax rates, the best health and education and the opportunity to influence are being given not just to the rich but also to their children.

Without a concerted effort to tackle inequality, the cascade of privilege and of disadvantage will continue down the generations. We will soon live in a world where equality of opportunity is just a dream. In too many countries economic growth already amounts to little more than a ‘winner takes all’ windfall for the richest.”

Oxfam's statement is intended to be provocative. It presents a worst case scenario, when the real picture might be slightly more cheerful. At least inequality between countries is falling, even if inequality is rising within them. I don't seek to justify inequality, which is a significant and growing problem, even in rich countries like Britain.

Inequality is an important component in the debate about economic development. A nice info-graphic about its measurement can be found here.