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Yahoo
5 days ago
- Business
- Yahoo
How Much Income Inequality Exists in Every State
Across 41 states, the bottom 20% make less than $20,000 on average. Meanwhile, the top 20% earn more than $250,000 in 25 states — accounting for half of America. While it's not exactly a new development to hear income inequality persists in every state, recent data compiled by GOBankingRates reveals the lines between massive wealth and abject poverty are increasingly stark. Learn More: See Next: GOBankingRates was able to determine the amount of income inequality by sourcing the 2023 American Community Survey for each state's Gini index, which summarizes the dispersion of income across the country. The Gini coefficient ranges from 0 (perfect equality) to 1 (perfect inequality). No state received a 0. Additional factors analyzed include the bottom 20% of earners' average income, the top 20% of earners' average income, the top 5% of earners' average income and top 5% of earners' share of wealth. The bottom 20% earn less than $20,000 in 41 states. By sharp comparison, the top 20% earn $300,000 in 10 states: New York (#1), Connecticut (#2), California (#4), Massachusetts (#5), New Jersey (#10), Virginia (#20), Washington (#25), Colorado (#32), Maryland (#34) and Hawaii (#42). New York has the most income inequality. New York is also one of five states where the top 5% earn $600,000 on average. Connecticut, California, Massachusetts and New Jersey round out the remaining states. Louisiana ranks third. While California, Connecticut, Massachusetts and New York are all well known for their expense, Louisiana is by far the lowest cost state to rank in the top five for income inequality. The top 5% have a 25% share of wealth in New York and Connecticut. Across the United States, this amounts to more than 20% in 47 states. Alaska is the only state where the top 5% have less than a 20% share of wealth — but at 19.4% it won't be long before the top 5% has a 20%+ share of wealth in every US state. Ranked from highest to lowest Gini index, keep reading to view the amount of income inequality in every state. Discover More: Find Out: Bottom 20% average income: $15,334 Top 20% average income: $342,150 Top 5% average income: $646,648 Top 5% share of wealth: 25.7% Gini index (0-1): 0.5152 Read Next: Bottom 20% average income: $18,939 Top 20% average income: $358,875 Top 5% average income: $676,016 Top 5% share of wealth: 25% Gini index (0-1): 0.4984 Bottom 20% average income: $11,406 Top 20% average income: $223,489 Top 5% average income: $394,301 Top 5% share of wealth: 23% Gini index (0-1): 0.4944 Bottom 20% average income: $19,606 Top 20% average income: $356,382 Top 5% average income: $638,872 Top 5% share of wealth: 23.4% Gini index (0-1): 0.4887 Bottom 20% average income: $18,796 Top 20% average income: $364,076 Top 5% average income: $642,510 Top 5% share of wealth: 22.8% Gini index (0-1): 0.4877 Bottom 20% average income: $16,315 Top 20% average income: $266,051 Top 5% average income: $499,610 Top 5% share of wealth: 24.5% Gini index (0-1): 0.4849 For You: Bottom 20% average income: $11,083 Top 20% average income: $197,470 Top 5% average income: $346,882 Top 5% share of wealth: 22.5% Gini index (0-1): 0.4840 Bottom 20% average income: $13,044 Top 20% average income: $212,270 Top 5% average income: $385,873 Top 5% share of wealth: 23.4% Gini index (0-1): 0.4807 Bottom 20% average income: $16,674 Top 20% average income: $289,355 Top 5% average income: $521,013 Top 5% share of wealth: 23.1% Gini index (0-1): 0.4802 Bottom 20% average income: $20,700 Top 20% average income: $359,314 Top 5% average income: $632,685 Top 5% share of wealth: 22.6% Gini index (0-1): 0.4800 Bottom 20% average income: $12,871 Top 20% average income: $219,518 Top 5% average income: $384,038 Top 5% share of wealth: 22.3% Gini index (0-1): 0.4783 Try This: Bottom 20% average income: $15,866 Top 20% average income: $264,953 Top 5% average income: $472,175 Top 5% share of wealth: 22.8% Gini index (0-1): 0.4779 Bottom 20% average income: $13,043 Top 20% average income: $219,022 Top 5% average income: $395,106 Top 5% share of wealth: 22.9% Gini index (0-1): 0.4776 Bottom 20% average income: $12,418 Top 20% average income: $216,944 Top 5% average income: $373,030 Top 5% share of wealth: 21.8% Gini index (0-1): 0.4774 Bottom 20% average income: $14,418 Top 20% average income: $237,160 Top 5% average income: $428,094 Top 5% share of wealth: 23.1% Gini index (0-1): 0.4773 Bottom 20% average income: $16,872 Top 20% average income: $272,904 Top 5% average income: $487,366 Top 5% share of wealth: 22.8% Gini index (0-1): 0.4765 Be Aware: Bottom 20% average income: $15,742 Top 20% average income: $249,042 Top 5% average income: $446,248 Top 5% share of wealth: 22.9% Gini index (0-1): 0.4760 Bottom 20% average income: $15,072 Top 20% average income: $238,504 Top 5% average income: $435,202 Top 5% share of wealth: 23.3% Gini index (0-1): 0.4755 Bottom 20% average income: $16,609 Top 20% average income: $266,309 Top 5% average income: $473,542 Top 5% share of wealth: 22.6% Gini index (0-1): 0.4737 Bottom 20% average income: $19,781 Top 20% average income: $316,724 Top 5% average income: $547,015 Top 5% share of wealth: 21.8% Gini index (0-1): 0.4716 Bottom 20% average income: $12,333 Top 20% average income: $197,286 Top 5% average income: $340,667 Top 5% share of wealth: 21.6% Gini index (0-1): 0.4697 Read More: Bottom 20% average income: $14,390 Top 20% average income: $219,134 Top 5% average income: $389,979 Top 5% share of wealth: 22.3% Gini index (0-1): 0.4675 Bottom 20% average income: $15,460 Top 20% average income: $237,659 Top 5% average income: $420,966 Top 5% share of wealth: 22.2% Gini index (0-1): 0.4674 Bottom 20% average income: $17,024 Top 20% average income: $258,414 Top 5% average income: $470,305 Top 5% share of wealth: 22.9% Gini index (0-1): 0.4669 Bottom 20% average income: $21,589 Top 20% average income: $325,947 Top 5% average income: $574,868 Top 5% share of wealth: 22.2% Gini index (0-1): 0.4660 Bottom 20% average income: $15,897 Top 20% average income: $234,836 Top 5% average income: $420,563 Top 5% share of wealth: 22.4% Gini index (0-1): 0.4652 View Next: Bottom 20% average income: $15,909 Top 20% average income: $240,130 Top 5% average income: $419,606 Top 5% share of wealth: 21.8% Gini index (0-1): 0.4639 Bottom 20% average income: $16,750 Top 20% average income: $237,041 Top 5% average income: $430,052 Top 5% share of wealth: 22.7% Gini index (0-1): 0.4634 Bottom 20% average income: $17,609 Top 20% average income: $259,767 Top 5% average income: $461,363 Top 5% share of wealth: 22.2% Gini index (0-1): 0.4624 Bottom 20% average income: $17,956 Top 20% average income: $269,437 Top 5% average income: $470,649 Top 5% share of wealth: 21.7% Gini index (0-1): 0.4621 Bottom 20% average income: $17,075 Top 20% average income: $276,548 Top 5% average income: $477,607 Top 5% share of wealth: 21.2% Gini index (0-1): 0.4607 Explore More: Bottom 20% average income: $21,409 Top 20% average income: $307,101 Top 5% average income: $538,026 Top 5% share of wealth: 21.7% Gini index (0-1): 0.4576 Bottom 20% average income: $16,977 Top 20% average income: $237,505 Top 5% average income: $418,624 Top 5% share of wealth: 21.7% Gini index (0-1): 0.4567 Bottom 20% average income: $21,505 Top 20% average income: $327,400 Top 5% average income: $554,828 Top 5% share of wealth: 20.7% Gini index (0-1): 0.4560 Bottom 20% average income: $18,092 Top 20% average income: $247,090 Top 5% average income: $447,231 Top 5% share of wealth: 22.3% Gini index (0-1): 0.4556 Bottom 20% average income: $17,493 Top 20% average income: $240,712 Top 5% average income: $425,080 Top 5% share of wealth: 21.8% Gini index (0-1): 0.4555 Trending Now: Bottom 20% average income: $17,522 Top 20% average income: $246,410 Top 5% average income: $437,736 Top 5% share of wealth: 21.8% Gini index (0-1): 0.4551 Bottom 20% average income: $18,239 Top 20% average income: $252,655 Top 5% average income: $434,633 Top 5% share of wealth: 21% Gini index (0-1): 0.4522 Bottom 20% average income: $16,520 Top 20% average income: $226,387 Top 5% average income: $396,992 Top 5% share of wealth: 21.4% Gini index (0-1): 0.4520 Bottom 20% average income: $21,058 Top 20% average income: $282,691 Top 5% average income: $497,204 Top 5% share of wealth: 21.5% Gini index (0-1): 0.4500 Bottom 20% average income: $19,803 Top 20% average income: $266,218 Top 5% average income: $463,843 Top 5% share of wealth: 21.2% Gini index (0-1): 0.4495 View More: Bottom 20% average income: $21,178 Top 20% average income: $310,254 Top 5% average income: $526,148 Top 5% share of wealth: 20.5% Gini index (0-1): 0.4495 Bottom 20% average income: $17,308 Top 20% average income: $235,402 Top 5% average income: $417,388 Top 5% share of wealth: 21.4% Gini index (0-1): 0.4483 Bottom 20% average income: $17,834 Top 20% average income: $230,785 Top 5% average income: $414,593 Top 5% share of wealth: 21.8% Gini index (0-1): 0.4470 Bottom 20% average income: $17,958 Top 20% average income: $231,690 Top 5% average income: $405,907 Top 5% share of wealth: 21.2% Gini index (0-1): 0.4447 Bottom 20% average income: $19,548 Top 20% average income: $240,204 Top 5% average income: $431,824 Top 5% share of wealth: 21.9% Gini index (0-1): 0.4442 Discover Next: Bottom 20% average income: $18,642 Top 20% average income: $238,669 Top 5% average income: $418,668 Top 5% share of wealth: 21.1% Gini index (0-1): 0.4434 Bottom 20% average income: $23,065 Top 20% average income: $297,363 Top 5% average income: $507,282 Top 5% share of wealth: 20.4% Gini index (0-1): 0.4414 Bottom 20% average income: $21,333 Top 20% average income: $270,877 Top 5% average income: $445,464 Top 5% share of wealth: 19.4% Gini index (0-1): 0.4333 Bottom 20% average income: $24,390 Top 20% average income: $276,288 Top 5% average income: $483,169 Top 5% share of wealth: 20.6% Gini index (0-1): 0.4277 Methodology: For this piece GOBankingRates looked at all states and found the following factors for each state: (1) Gini Index measuring income inequality (definition below); (2) bottom 20% of earners' average income; (3) top 20% of earners' average income; (4) top 5% of earners' average income; (5) bottom 20% of earners' share of wealth; (6) top 20% of earners' share of wealth; (7) top 5% of earners' share of wealth; (8) median household income; and (9) average household income. For rankings only factor (1) was considered. All data was sourced from the 2023 American Community Survey as conducted by the U.S. Census Bureau. All data was collected on and is up to date as of May 29, 2025. Gini Index: The Gini Index is a summary measure of income inequality. The Gini coefficient incorporates the detailed shared data into a single statistic, which summarizes the dispersion of income across the entire income distribution. The Gini coefficient ranges from 0, indicating perfect equality (where everyone receives an equal share), to 1, perfect inequality (where only one recipient or group of recipients receives all the income). The Gini is based on the difference between the Lorenz curve (the observed cumulative income distribution) and the notion of a perfectly equal income distribution. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Clever Ways To Save Money That Actually Work in 2025 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on How Much Income Inequality Exists in Every State
Yahoo
13-06-2025
- Business
- Yahoo
How has wealth inequality changed across Europe since the 2008 crisis?
The richest 10% in the eurozone held 57.3% of total net household wealth in the final quarter of 2024. This is 2.8 percentage points higher than in the same period of 2009, when their share was 54.5%, according to the European Central Bank (ECB). Wealth inequality has increased in some parts of Europe while declining in others in the period from 2008 to 2023, according to UBS's Global Wealth Report 2024. The report notes that wealth inequality has generally risen in most of Eastern Europe, while the data for Western Europe is 'extremely mixed'. So, which European countries have seen the greatest increases or decreases in inequality since the 2008 financial crisis? And which countries in Europe have the highest disparities between rich and poor? UBS's report covers 12 European countries and uses the Gini coefficient as the primary measure of inequality. A higher Gini coefficient indicates greater wealth inequality, with 0 representing perfect equality. Net worth — or 'wealth' — is defined as the total value of a household's financial and real assets (primarily housing), minus its debts. In 2023, the Wealth Inequality Gini Index ranged from 46 in Belgium to 75 in Sweden, among the 12 European countries covered. Sweden recorded the highest level of wealth inequality by far, followed by Germany (68), Switzerland (67), and Austria (65). Belgium stood out with the lowest Gini score of 46, indicating the highest level of equal wealth distribution in the list. It was a clear outlier, as the closest countries — Italy and Spain — both had significantly higher scores of 57. France and the UK — two of Europe's major economies — both fall below the 12-country average Gini index of 62.1, with scores of 59 and 61 respectively. Among the Nordic countries, Denmark (62) and Finland (64) were around the average, as was the Netherlands (64). Looking at the change in the Gini Index between 2008 and 2023, Finland recorded the highest increase, rising by 21%, from 53 to 64. Spain followed closely, with a 20% increase, from 47 to 57. Italy also saw a notable rise of around 15%, going from 50 to 57, while Denmark's index increased by 11%, from 56 to 62. According to the UBS report, wealth inequality also increased in the UK by roughly 8% and in France by 5% between 2008 and 2023. Sweden, which had the highest Gini Index among the countries examined, saw only a slight rise of 1% during this period. Wealth inequality declined in five out of the 12 countries examined. Belgium saw the largest drop, with an 11% decrease in its Gini Index—from 51 to 46. Germany, Austria, and Switzerland each recorded a roughly 5% decline, while the Netherlands saw a 4% reduction over the same period. Veli-Matti Törmälehto, a senior researcher at Statistics Finland, noted that surveys carried out by his own organisation also indicate a rise in wealth inequality. 'In general, the increase in wealth inequality in Finland can be attributed to a shift from real assets towards financial assets in households' average portfolio,' Törmälehto told Euronews Business. 'The role of housing wealth has been important, with weak and even declining housing prices and uneven regional patterns, as well as declining homeownership rate.' He also noted that financial wealth has continued to grow, which contributes to rising inequality, as these assets are heavily concentrated among the wealthiest households. According to Statistics Finland, the share of total wealth held by the wealthiest 10% of households increased from 43.9% in 2009 to 51.8% in 2023. Related Billionaire wealth surges as Oxfam predicts five trillionaires in decade Where are Europe's top tax havens - and how are they luring in the rich? Arthur Apostel, a researcher at Ghent University, pointed out that an ECB study shows a slight decline in Belgium's wealth inequality — from 0.71 in 2010 to 0.69 in 2023 —representing a 2.8% decrease. This differs from what the UBS report claims. Apostel argued that there is insufficient evidence to confidently conclude that wealth inequality in Belgium has meaningfully decreased in recent years. According to the Distributional Wealth Accounts (DWA), the share of net wealth held by the top 5% in Belgium declined from 49.3% in 2010 to 44.8% in 2023. Both Apostel and Törmälehto recommend caution when using UBS figures, especially for cross-country comparisons, as the report relies on estimates drawn from a mix of micro- and macro-level data. Gini Index scores may not clearly show how unequally wealth is distributed, partly because they're not very sensitive to the extremes. But wealth shares held by top percentiles provide a more detailed picture. While this breakdown is not included in the 2024 UBS report, it is available in the 2023 edition, which presents data from 2022. In 2022, the richest 10% of households in Sweden held 74.4% of total wealth, while in Belgium they held just 43.5%. These two countries had the highest and lowest wealth inequality Gini Index scores, respectively, among the 12 countries included in 2023. The top 10% of households held 63% of total wealth in Germany and 62.5% in Switzerland— placing both countries just behind Sweden in both the Gini Index and the share of wealth held by the top 10%. While the rankings of some countries shift slightly when looking at the top 5% or top 1% of wealth holders, the overall trends in wealth distribution remain consistent. The report emphasised that changes in inequality alone don't necessarily indicate whether people are better or worse off in different countries. It suggests that absolute wealth levels also need to be taken into consideration 'in order to paint a comprehensive picture of a society's wealth profile'. In other words, it's also important to look at how much wealth people have, as well as how it is divided.
Yahoo
13-06-2025
- Business
- Yahoo
How has wealth inequality changed across Europe since the 2008 crisis?
The richest 10% in the eurozone held 57.3% of total net household wealth in the final quarter of 2024. This is 2.8 percentage points higher than in the same period of 2009, when their share was 54.5%, according to the European Central Bank (ECB). Wealth inequality has increased in some parts of Europe while declining in others in the period from 2008 to 2023, according to UBS's Global Wealth Report 2024. The report notes that wealth inequality has generally risen in most of Eastern Europe, while the data for Western Europe is 'extremely mixed'. So, which European countries have seen the greatest increases or decreases in inequality since the 2008 financial crisis? And which countries in Europe have the highest disparities between rich and poor? UBS's report covers 12 European countries and uses the Gini coefficient as the primary measure of inequality. A higher Gini coefficient indicates greater wealth inequality, with 0 representing perfect equality. Net worth — or 'wealth' — is defined as the total value of a household's financial and real assets (primarily housing), minus its debts. In 2023, the Wealth Inequality Gini Index ranged from 46 in Belgium to 75 in Sweden, among the 12 European countries covered. Sweden recorded the highest level of wealth inequality by far, followed by Germany (68), Switzerland (67), and Austria (65). Belgium stood out with the lowest Gini score of 46, indicating the highest level of equal wealth distribution in the list. It was a clear outlier, as the closest countries — Italy and Spain — both had significantly higher scores of 57. France and the UK — two of Europe's major economies — both fall below the 12-country average Gini index of 62.1, with scores of 59 and 61 respectively. Among the Nordic countries, Denmark (62) and Finland (64) were around the average, as was the Netherlands (64). Looking at the change in the Gini Index between 2008 and 2023, Finland recorded the highest increase, rising by 21%, from 53 to 64. Spain followed closely, with a 20% increase, from 47 to 57. Italy also saw a notable rise of around 15%, going from 50 to 57, while Denmark's index increased by 11%, from 56 to 62. According to the UBS report, wealth inequality also increased in the UK by roughly 8% and in France by 5% between 2008 and 2023. Sweden, which had the highest Gini Index among the countries examined, saw only a slight rise of 1% during this period. Wealth inequality declined in five out of the 12 countries examined. Belgium saw the largest drop, with an 11% decrease in its Gini Index—from 51 to 46. Germany, Austria, and Switzerland each recorded a roughly 5% decline, while the Netherlands saw a 4% reduction over the same period. Veli-Matti Törmälehto, a senior researcher at Statistics Finland, noted that surveys carried out by his own organisation also indicate a rise in wealth inequality. 'In general, the increase in wealth inequality in Finland can be attributed to a shift from real assets towards financial assets in households' average portfolio,' Törmälehto told Euronews Business. 'The role of housing wealth has been important, with weak and even declining housing prices and uneven regional patterns, as well as declining homeownership rate.' He also noted that financial wealth has continued to grow, which contributes to rising inequality, as these assets are heavily concentrated among the wealthiest households. According to Statistics Finland, the share of total wealth held by the wealthiest 10% of households increased from 43.9% in 2009 to 51.8% in 2023. Related Billionaire wealth surges as Oxfam predicts five trillionaires in decade Where are Europe's top tax havens - and how are they luring in the rich? Arthur Apostel, a researcher at Ghent University, pointed out that an ECB study shows a slight decline in Belgium's wealth inequality — from 0.71 in 2010 to 0.69 in 2023 —representing a 2.8% decrease. This differs from what the UBS report claims. Apostel argued that there is insufficient evidence to confidently conclude that wealth inequality in Belgium has meaningfully decreased in recent years. According to the Distributional Wealth Accounts (DWA), the share of net wealth held by the top 5% in Belgium declined from 49.3% in 2010 to 44.8% in 2023. Both Apostel and Törmälehto recommend caution when using UBS figures, especially for cross-country comparisons, as the report relies on estimates drawn from a mix of micro- and macro-level data. Gini Index scores may not clearly show how unequally wealth is distributed, partly because they're not very sensitive to the extremes. But wealth shares held by top percentiles provide a more detailed picture. While this breakdown is not included in the 2024 UBS report, it is available in the 2023 edition, which presents data from 2022. In 2022, the richest 10% of households in Sweden held 74.4% of total wealth, while in Belgium they held just 43.5%. These two countries had the highest and lowest wealth inequality Gini Index scores, respectively, among the 12 countries included in 2023. The top 10% of households held 63% of total wealth in Germany and 62.5% in Switzerland— placing both countries just behind Sweden in both the Gini Index and the share of wealth held by the top 10%. While the rankings of some countries shift slightly when looking at the top 5% or top 1% of wealth holders, the overall trends in wealth distribution remain consistent. The report emphasised that changes in inequality alone don't necessarily indicate whether people are better or worse off in different countries. It suggests that absolute wealth levels also need to be taken into consideration 'in order to paint a comprehensive picture of a society's wealth profile'. In other words, it's also important to look at how much wealth people have, as well as how it is divided.
Euronews
13-06-2025
- Business
- Euronews
How has wealth inequality changed across Europe since the 2008 crisis?
The richest 10% in the eurozone held 57.3% of total net household wealth in the final quarter of 2024. This is 2.8 percentage points higher than in the same period of 2009, when their share was 54.5%, according to the European Central Bank (ECB). Wealth inequality has increased in some parts of Europe while declining in others in the period from 2008 to 2023, according to UBS's Global Wealth Report 2024. The report notes that wealth inequality has generally risen in most of Eastern Europe, while the data for Western Europe is 'extremely mixed'. So, which European countries have seen the greatest increases or decreases in inequality since the 2008 financial crisis? And which countries in Europe have the highest disparities between rich and poor? UBS's report covers 12 European countries and uses the Gini coefficient as the primary measure of inequality. A higher Gini coefficient indicates greater wealth inequality, with 0 representing perfect equality. Net worth — or 'wealth' — is defined as the total value of a household's financial and real assets (primarily housing), minus its debts. In 2023, the Wealth Inequality Gini Index ranged from 46 in Belgium to 75 in Sweden, among the 12 European countries covered. Sweden recorded the highest level of wealth inequality by far, followed by Germany (68), Switzerland (67), and Austria (65). Belgium stood out with the lowest Gini score of 46, indicating the highest level of equal wealth distribution in the list. It was a clear outlier, as the closest countries — Italy and Spain — both had significantly higher scores of 57. France and the UK — two of Europe's major economies — both fall below the 12-country average Gini index of 62.1, with scores of 59 and 61 respectively. Among the Nordic countries, Denmark (62) and Finland (64) were around the average, as was the Netherlands (64). Looking at the change in the Gini Index between 2008 and 2023, Finland recorded the highest increase, rising by 21%, from 53 to 64. Spain followed closely, with a 20% increase, from 47 to 57. Italy also saw a notable rise of around 15%, going from 50 to 57, while Denmark's index increased by 11%, from 56 to 62. According to the UBS report, wealth inequality also increased in the UK by roughly 8% and in France by 5% between 2008 and 2023. Sweden, which had the highest Gini Index among the countries examined, saw only a slight rise of 1% during this period. Wealth inequality declined in five out of the 12 countries examined. Belgium saw the largest drop, with an 11% decrease in its Gini Index—from 51 to 46. Germany, Austria, and Switzerland each recorded a roughly 5% decline, while the Netherlands saw a 4% reduction over the same period. Veli-Matti Törmälehto, a senior researcher at Statistics Finland, noted that surveys carried out by his own organisation also indicate a rise in wealth inequality. 'In general, the increase in wealth inequality in Finland can be attributed to a shift from real assets towards financial assets in households' average portfolio,' Törmälehto told Euronews Business. 'The role of housing wealth has been important, with weak and even declining housing prices and uneven regional patterns, as well as declining homeownership rate.' He also noted that financial wealth has continued to grow, which contributes to rising inequality, as these assets are heavily concentrated among the wealthiest households. According to Statistics Finland, the share of total wealth held by the wealthiest 10% of households increased from 43.9% in 2009 to 51.8% in 2023. Arthur Apostel, a researcher at Ghent University, pointed out that an ECB study shows a slight decline in Belgium's wealth inequality — from 0.71 in 2010 to 0.69 in 2023 —representing a 2.8% decrease. This differs from what the UBS report claims. Apostel argued that there is insufficient evidence to confidently conclude that wealth inequality in Belgium has meaningfully decreased in recent years. According to the Distributional Wealth Accounts (DWA), the share of net wealth held by the top 5% in Belgium declined from 49.3% in 2010 to 44.8% in 2023. Both Apostel and Törmälehto recommend caution when using UBS figures, especially for cross-country comparisons, as the report relies on estimates drawn from a mix of micro- and macro-level data. Gini Index scores may not clearly show how unequally wealth is distributed, partly because they're not very sensitive to the extremes. But wealth shares held by top percentiles provide a more detailed picture. While this breakdown is not included in the 2024 UBS report, it is available in the 2023 edition, which presents data from 2022. In 2022, the richest 10% of households in Sweden held 74.4% of total wealth, while in Belgium they held just 43.5%. These two countries had the highest and lowest wealth inequality Gini Index scores, respectively, among the 12 countries included in 2023. The top 10% of households held 63% of total wealth in Germany and 62.5% in Switzerland— placing both countries just behind Sweden in both the Gini Index and the share of wealth held by the top 10%. While the rankings of some countries shift slightly when looking at the top 5% or top 1% of wealth holders, the overall trends in wealth distribution remain consistent. The report emphasised that changes in inequality alone don't necessarily indicate whether people are better or worse off in different countries. It suggests that absolute wealth levels also need to be taken into consideration 'in order to paint a comprehensive picture of a society's wealth profile'. In other words, it's also important to look at how much wealth people have, as well as how it is divided. The Irish government on Wednesday defeated a cross-party motion that called on it to stop the Central Bank of Ireland from facilitating the sale of Israeli bonds. The motion, presented by the Social Democrats and supported by Sinn Féin, Labour, and People Before Profit, was intended to block what many refer to as 'Israeli war bonds'. The instruments provide economic support to Israel while it conducts military operations in Gaza, and Ireland's Central Bank currently approves the sale of these bonds in EU markets. Bonds issued by non-EU countries must be approved by the financial regulator in one member state before they can be sold within the single market. The bill failed with 85 votes against and 71 in favour, upholding the government's position. Several TDs, Irish members of parliament, argued that Ireland should not be involved in financial instruments that fund destruction in Gaza. The Central Bank estimated that Israel has raised between €100mn and €130mn from their sale. Taoiseach Micheál Martin nonetheless rejected claims that the Irish government is complicit in genocide by allowing the facilitation of the bond sales. Despite publicly acknowledging the severity of Israel's attacks in Gaza, he maintained that Ireland must oppose the military action within legal and diplomatic channels. As such, the government argued that it cannot legally direct the Central Bank due to its independence under Irish and EU law. When the same objection arose last month in response to a similar motion from Sinn Féin, party leader Mary Lou McDonald argued: 'We have over 20 pages of independent, robust legal opinion clearly stating that the bill is compliant with Irish law, European law and international law.' As per the EU's Prospectus Regulation, non-EU countries like Israel must meet disclosure and legal standards to issue bonds in the bloc. If those standards are met, the Central Bank doesn't have the authority to reject bond applications. 'The Central Bank cannot decide to impose sanctions for breaches or alleged breaches of international law. It is for international bodies such as the UN or the EU to determine how to respond to breaches or alleged breaches of international law,' said Central Bank Governor Gabriel Makhlouf. He added that the Genocide Convention applies to the Irish State, not regulatory bodies like the Central Bank. The reason why the Irish Central Bank is at the core of this issue — despite Ireland being one of the EU countries that has been the most vocally pro-Palestine — is Brexit. When the United Kingdom voted to leave the European Union in 2016, Israel chose Ireland to be the home member state to approve its bonds. Prior to 2021, this responsibility fell to the UK. The current prospectus for Israeli bonds is set to expire in September, but Central Bank officials believe that Israeli authorities will likely initiate the renewal process several weeks beforehand. In the absence of new EU sanctions or changes to existing legislation, the Central Bank will remain legally bound to approve the bond prospectus, regardless of the political fallout. Meanwhile, protesters have been gathering for months outside the seat of the parliament, Leinster House, and the Central Bank, demanding that the government block Israeli bond sales.
Time of India
25-04-2025
- Business
- Time of India
India lifted 170 million out of poverty in a decade: World Bank
New Delhi: India made strides in poverty reduction, lifting 170 million (17 crore) people out of poverty between 2011-12 and 2022-23, a new World Bank report said. The proportion of people living in extreme poverty, those living on less than $2.15 a day, declined to 2.3% in 2022-23 from 16.2% in 2011-12. #Pahalgam Terrorist Attack India pulled the plug on IWT when Pakistanis are fighting over water What makes this India-Pakistan standoff more dangerous than past ones The problem of Pakistan couldn't have come at a worse time for D-St On Friday, finance minister Nirmala Sitharaman highlighted the feat on social media and noted that employment growth has outpaced working-age population. Rural areas recorded a higher decline in poverty than urban areas. The extreme poverty rate in rural areas fell to 2.8% in 2022-23 from 18.4% in 2011-12, while urban areas saw a reduction to 1.1% from 10.7% during the same period, according to the 'Poverty and Equity Brief' by the World Bank. Five states-Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh-accounted for 65% of India's extreme poor in 2011-12. These states were also responsible for two-third of the poverty reduction by 2022-23 and now represent 54% of those living in extreme poverty. 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sulawesi Selatan: AI guru Andrew Ng recommends: Read These 5 Books And Turn Your Life Aroun... Blinkist: Andrew Ng's Reading List Undo The poverty estimates are based on the Consumption Expenditure Survey 2011-12 and the Household Consumption Expenditure Survey 2022-23. While the latest survey includes improvements in questionnaire design, survey implementation, and sampling, the World Bank cautioned that these changes pose challenges for making comparisons over time. It also noted underestimation of consumption inequality due to sampling and data limitations. India's Gini Index, which measures consumption-based inequality, fell to 25.5 in 2022-23 from 28.8 in 2011-12, marking an improvement. However, the Bank warned that this may not fully reflect reality due to data limitations. Live Events In contrast, the World Inequality Database reported a rise in income inequality, with the Index increasing to 62 in 2023 from 52 in 2004. "Wage disparity remains high, with the median earnings of the top 10 %being 13 times higher than the bottom 10% in 2023-24," the Bank mentioned. On a positive note, employment has grown faster than the working-age population since 2021-22, according to the World Bank. The data shows a shift in the workforce: more male workers are moving from rural to urban areas, while female employment in rural agriculture is rising, it added.
