We often hear that inequality in wealth is rising across the globe. This is undoubtedly true. For example, income inequality in the U.S. last year reached its highest level in more than half a century due to the post-GFC economic expansion disproportionately benefiting the wealthiest Americans. The so-called Gini index, a key measure of wealth distribution, rose to 0.485 in 2018, from 0.482 a year earlier, with states such as California and Texas experiencing the biggest jumps.
But is inequality actually a bad thing? Academics, politicians, the poor and some of the rich have argued that it is deeply unfair for there to be high levels of inequality. Thomas Piketty has argued that governments should step in by adopting a global tax on wealth, and Senator Elizabeth Warren has made a wealth tax a centerpiece of her presidential bid for 2020.
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