In a new report, Causes and Consequences of Income
Inequality: A Global Perspective, the IMF found the top 1% has experienced the
largest gains, according to the report. That group now accounts for about 10%
of total income in developed economies. Despite the fact that the top 1% got
richer everywhere, poverty in emerging countries has been declining and poverty
in advanced countries has largely risen. When using the method of comparing the
earnings of the 90th percentile to the earning of the 10th percentile,
inequality grew most in the US and the UK.
It also found that when the income share of the top 20%
increases, the country’s GDP declines over the medium term. In China more than
one-third of the country’s wealth is concentrated in the top 1%.
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