Question

Discuss the global distribution of income and wealth.?

Answer 1

comparison of wealth of various groups in the world is called global distribution. wealth distribution is related to income distribution but is different as income distribution involves dividing the income but wealth distribution tsandds for dividing the assets. it can be analyzed in various ways. 99 percentile relative to wealth of median percentile, ratio of total wwealth in the hand of 1% of wealth distributon over total wealth are ways of measuring it. wealth over people curves show distribution of wealth. percentages from 0 to 100 are shown by vertical and horizontal scales. For any nation, the average wealth of the richest 1/100 of households is the topmost point on the curve. the topmost and the righmost points are known without gathering statistics. two extreme curves are possible. the perfect communist curve is a straight line from leftmost point horizontally across the people scale to p=99 and then a drop vartically to wealth=0. another is perfect tyranny form starting from the left at wealth=100% dropping immediately to 0 at p=2 and continuing horizontally across the curve. an obvious form is a diagonal line which connects the topmost and left most points.

people vary in their acquisition of personal welth. some earn great wealth in a low age and others do not earn even in the middle ages too. the wealth pyramid by credit suisse in 2013 and shows the differences in detail. the base of poor people is large and the rich people are few. The pyramid reveals that:

• half of the world's wealth belongs to the top 1%,
• top 10% of adults hold 85%, while the bottom 90% hold the remaining 15% of the world's total wealth,
• top 30% of adults hold 97% of the total wealth.

A study by the World Institute for Development Economics Research at United Nations University reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. The bottom half of the world adult population owned 1% of global wealth. Moreover, another study found that the richest 2% own more than half of global household assets.