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Seeds of Dystopia being Sown by Increasing Global Income Inequality – WEF Davos Report

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The rising income inequality throughout the world is sowing seeds of dystopia according to a report released by World Economic Forum. The biggest risk amongst the 50 risks listed is the increasing wealth gap between individuals in all countries. Gini’s coefficient has risen in most countries developing as well as developed and this has a strong correlation to globalization. The global arbitrage of labor has tilted the scales towards capital and increasingly made wages become stagnant. Developing countries with weak institutions are showing income inequality in horrific forms with $2 billion homes existing in the middle of millions surviving on less than $2 day. US has already seen the OWS movement as a result of this increasing income gap between the have and have nots. Middle Eastern countries have also seen revolutions brought upon by the massive riches of the elite compared to the rising poverty of the poor and even the middle classes.

India Income Inequality

Income Inequality in India has been rising at an unprecedented rate in the  last couple of decades.The opening of the Indian economy has led to even starker levels of income disparity among the very rich and majority of the Indian citizens.The Crushing Income Disparity is seen in the world’s most expensive $2 Billion House set amongst 42% of the world’s hungry children.The latest Forbes report lists 50 Indian Dollar Billionaires with 2 in the Top 10.A 2007 report by the state-run National Commission for Enterprises in the Unorganised Sector (NCEUS) found that 77% of Indians, or 836 million people, lived on less than 20 rupees (approximately US$0.50 nominal; US$2 PPP) per day.India Middle Class is sharply cutting down on shopping,entertainment and other discretionary expenses as food,education and medical costs go through the roof.A recent survey done by Assocham proved these anecdotal stories true as middle class has gone into a spending shell while the richer upper classes continue to spend affected.The only class that is feeling super great is the Super Rich who are going feeling gung ho and most likely in the world to spend on yachts and private jets.Note the Super Rich are seeing more billions pouring into their offshore bank accounts while poor Indians are finding it difficult in these days of high food prices to even get 2 square meals a day for their children

US Income Inequality

Once upon a time, the United States had the largest and most vibrant middle class that the world has ever seen.  Unfortunately, that is rapidly changing.

#1 Today, only 55.3 percent of all Americans between the ages of 16 and 29 have jobs.

#4 Since the year 2000, the United States has lost 10% of its middle class jobs.  In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.

#5 According to the New York Times, approximately 100 million Americans are either living in poverty or in “the fretful zone just above it”.

#6 According to that same article in the New York Times, 34 percent of all elderly Americans are living in poverty or “near poverty”, and 39 percent of all children in America are living in poverty or “near poverty”.

#7 In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the median net worth of households led by someone 35 or younger.  Today, the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger

Cybercrime has been listed as another major threat to peace as countries and individuals increasingly look vulnerable to private and government sponsored hacker groups. Even powerful organizations like Google have become victims of cyberwarfare while Iran faced an attack on its nuclear facility through a sophisticated virus.

Dystopia what it means (Wikipedia)

A dystopia  is the idea of a society in a repressive and controlled state, often under the guise of being utopian, as characterized in books like Brave New World and Nineteen Eighty-Four. Dystopian societies feature different kinds of repressive social control systems, various forms of active and passive coercion.

Growing wealth divide puts globalization at risk

Rising youth unemployment, a crisis of retirement among pensioners dependent on debt-burdened states and a yawning wealth gap have sown the “seeds of dystopia,” according to the report, based on a survey of 469 experts and industry leaders.For the first time in generations, people no longer believe their children will grow up to have a better standard of living.”It needs immediate political attention, otherwise the political rhetoric that responds to this social unease will involve nationalism, protectionism and rolling back the globalization process,” said WEF managing director Lee Howell.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in or call me on +913340606492.

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