Global Income Distribution: United Nations World Social Report (Term Test 2)

Inequality between nations is declining

Poorer nations have been growing faster than the richer nations.

United Nations findings about Global Income Distribution:

• Inequality between nations is declining

• Inequality Between all people of the globe is increasing

• Inequality between nations is still very high

How is Inequality between nations declining yet still being very high?

Due to Poorer nations growing faster than the quicker nations, but The average income of people in Northern America is 16 times higher than that of sub-Saharan Africans

How is Inequality between all people of the globe increasing?

The top 1% of the rich population is getting 20% of the income.

The bottom 50% of people make up only 9% of the total income, indicating a large income gap.

Related to curve of ceo wages

World Banks Poverty Line

In poverty if you make less than 1 dollar a day

Theories of economic distribution

Market Based Income Distribution

Marginal Productivity Theory: Marginal Revenue Product

Market Based Income Distribution (Milton Friedman)

Milton Friedman: Liberal Economist

• A fair distribution of income is what you earn and the skills you posses earn

  • carpenter: income determined by the amount people are willing to pay you to frame houses

• If you don’t have a job, and don’t have a skill, your income should be zero

• Reflects your societal value of you production

Marginal Productivity Theory: Marginal Revenue Product

The income of a worker is based on the value of what a worker produces