U.S. most inequal in the Western world

MattGinsberg's picture

According to the OECD's website the United States is now the most inequal country in the developed Western world.  Its Gini coefficient, an accurate measure of inequality, is at 40.  This is in comparison to the Scandinavian countries for instance, who sit at around 20.  Along with this, the savings rate in America is now negative at -2.  This means, essentially the average American is spending two percent more than they save each year.  I mention some further structural issues and problems with the direction of our economy in some of my comments in this post.

The reason that I put this information under the title of 'discrimination' is worthwhile through explaining some of the reasons why our inequality is so high.  As Hurricane Katrina exposed, there is still a major issue of discrimination in our country.  Especially during conflict, we see how our government values people differently.  Part of the reason for such a staggering Gini coefficient is due to how the current administration has prioritzed rights and benefits, by class and race.  We are now seeing programs which mainly benefit minorities and the poor cut in the name of rebuilding New Orleans.  This is horribly wrong and does nothing to mitigate the deeper problems, and hardly provides a temporary band-aid.  Also, the tax breaks for the top 1% of Americans is morally wrong and benefits the richest Americans in the country at the expense of the majority of America. 

In our country we have a great pride in economic status.  As the richest country in the world we set an example for the rest of the world to follow.  When you ask Americans which class they belong too, an overwheming majority, upwards of 97% will say 'middle class' while perhaps these folks are either upper or lower classmen.  By having a negative savings rate and the highest Gini coefficient in the Western world, growing levels of relative poverty, and a diminishing welfare state, we cannot provide a sound model to countries looking for an exemplar.

How can the average person help change this?  I'm not sure, a lot of power lies in our new Fed Chairman to tweak interest rates and such, but it seems to me that our principles as Americans are not accurately reflected by the data the OECD provides.  Many Americans are frugal and fiscally conservative and are more savvy than most other citizens of other countries with their money.  So what explains the discrepancies? That can be argued...what seems more useful is to figure out how we can reverse this trend that we're presented with currently.  Lets build from the ground up and help rid discrimination, and make a commitment to equality both racially and economically, then perhaps our broader situation of inequality may be curtailed.

In Montana, women make 67 cents for every dollar a man makes...
~Freddie

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.