Income Inequality Leads To Revolution

The recent global crisis has sparked interest in the relationship between income inequality credit booms and financial crises.

Income inequality leads to revolution. One guy gets 1 100 000 of this. Average income in norway is 19 times the average income in nigeria. Imagine a room with 100 people in it. With american inequality at historic levels yale s bruce judson asks if a revolution could happen here.

In the great leveler the stanford professor posits that throughout history economic inequality has only been rectified by one of the four horsemen of leveling. Per capita income for the other 99 averages 36 300 year. The 90 10 ratio is 22 in nigeria and 20 in india. Rajan 2010 and kumhof and rancière 2011 propose that rising inequality led to a credit boom and eventually to a financial crisis in the us in the first decade of the 21st century as it did in the 1920s.

Inequality within the very poorest countries is difficult to see in the graph but it is definitely there. We ll hear his case. Associated with a sense of unfairness in society 27alternatively high levels. Total income in the room is 4 700 000.

In 1904 on the eve of military defeat and the 1905 revolution russian income inequality was middling by the standards of that era and less severe than inequality has become today in such countries as china the united states and russia itself. Of inequality may lead to more people wanting a revolt for rational economic. Is it not the stagnation there that is the cause of the inequality which leads to more stagnation. It is all so circular.

Per capita income in the room averages 47 000 year. The second thing that jumps out from figure 1 2 is the huge difference in income between countries. Revolutionary support may in. Crease with income inequality because it becomes a source of grievance.

A newly released survey by the harvard business school of its alumni about american. Let s do american inequality the freakonomics way.