For decades, economic inequality has been on the rise around the world. In the United States, CEOs earn twenty times more than their typical employee; in South Africa, the top 10% of the population earned over 30 times more than the bottom 60% in 2016. The issue affects everyone, regardless of country or level of wealth, but it is particularly acute for the poorest.
The increase in inequality can be traced to many factors, including technological change and globalization. However, much of it stems from the enactment of policies that benefit large corporations and undermine worker rights. For example, the decline in unions has been a major factor contributing to rising inequality. Legislators have sided with corporations against their employees, allowing them to reduce wages and weaken labor laws.
In addition to income, wealth is also a significant factor contributing to inequality. People with more assets are able to leverage their wealth into more income and have greater access to credit. Furthermore, a person’s wealth is more likely to increase as they get older. This is why some economists argue that wealth concentrations are a natural part of economic progress, and they say that increasing wealth overall benefits society as a whole.
Despite these advantages, the majority of people believe that inequality has gone too far. In most countries surveyed, majorities believe that all six of the factors we asked about contribute to inequality at least somewhat. In some countries, the percentage who say that a specific factor contributes to inequality is higher. For example, in Ghana, a majority of respondents say that some people being born with more opportunities leads to inequality, while fewer say this is true in Kenya or Nigeria.