The Ninety-Nine Percent and the One Percent

Abstract

This paper explores income inequality from different angles. It tries to understand the
possible reasons for income inequality that exist in the modern world. It supports the notion
that exceptionally talented individuals using technology has been a reason behind rising
income inequality. The paper explores whether this has been the only reason for rising global
income inequality. It suggests that there may be other possible reasons, one of which is
globalization
Again, the paper explores the arguments for and against the ninety-nine percent and the one
percent. It analyzes whether the income of the middle-class has really remained the same and
argues that their income may not have necessarily stayed the same. It explores the case for
higher taxation on the rich.
It analyzes the consequences of income inequality on human development for countries at
different stages of human development. The paper finds that the relationship between the
Gini coefficient and human development is different for countries at various stages of human
development. However, it finds that income inequality reduces human development for all
countries irrespective of the stage of human development.
Finally, the paper explores the relationship between income inequality and poverty level for
the United States. It finds that poverty level in the US did not increase even though income
inequality has increased.