Wealth Blog

Finance Blogs » Wealth Blog » Income inequality a global crisis

Income inequality a global crisis

By Judy Martel · Bankrate.com
Wednesday, January 22, 2014
Posted: 6 am ET

The widening income gap between the haves and have-nots is a top global concern for the 2,500 delegates attending the four-day World Economic Forum in Davos, Switzerland.

Click on the graphic to see Bankrate's analysis of the widening income gap.

Click on the graphic to see Bankrate's analysis of the widening income gap.

In a survey of the 10 global risks of highest concern this year, the delegates ranked severe income disparity fourth. The top concern is fiscal crises in key economies, followed by high unemployment and a decline in the supply and quality of fresh water.

But the effects of income inequality could be among the most menacing to society's progress. In a press statement, the Forum notes that it is the "most likely risk to cause an impact on a global scale in the next decade" and says we could end up with a "lost generation" of young people.

Bankrate's analysis of income inequality in the U.S. found that from 1992 to 2012, the income gap widened among all age groups, but increased the most, by 21 percent, among those aged 35 to 44. Among those aged 25 to 34, the gap increased by 12.8 percent.

Philip Jennings, General Secretary of the labor group UNI Global Union, told Associated Press that the survey of global concerns provides "a wake-up call" to forum attendees.

"These are global issues we can do something about," Jennings said. "We can twist the global economy back into shape; this includes a new commitment to create jobs, address income inequality and falling living standards," he added. "Since the global financial crisis, it's been a race to the bottom in jobs, wages and living standards."

Keep up with your wealth and mortgages and follow me on Twitter.

Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
February 13, 2014 at 3:14 am

having job is our primary concern in our daily life but what about the wage of one employee? That not enough to support there needs?