Piketty: the middle east is the region with the big inequality worldwide

Piketty: The Middle East is the region with the big inequality worldwide

Burj Khalifa, Dubai. Photo: Nepenthes / CC BY-SA 2.5

"The top ten percent have at least 61 percent of the total income." The French economist Kummer is a rough blind spot of Middle East coverage

Only a few economists become like the Frenchman Thomas Piketty to a worldwide known star. His book the capital in 21. Century was a bestseller with the English translation in 2014. Until Marz this year, according to the piketty, between 2.6 and 3 million copies were sold. Its thematic focus is inequality during wealth and income, making special attention to historical developments.

To phanomenly piketty belongs that probably only a minority of the buyers have been able to finish the already designed, thick bricks (in the print allegedly 816 pages) to finish. His message grabbed the mirror to the publication of the German issue in the core statement "Something is lazy in the capitalist system."

Therefore, the phenomenon piketty belongs that his theses immediately love critics to the blanket, contradiction came quickly, a unuitable number of obviously to his methodology and his closes, a wave of polemics. According to his public image, he is a controversial topic, the more exposed, since he placed, unlike many ocons, on the left side of the spectrum. In the French championship campaign, he supported the (unsuccessful) Social Democratic candidate Benoît Hamon, but also showed sympathies for Jean-Luc Melenchon

The abolition of the wealth tax as a historical mistake

Piketty still logs out on current topics. He has a blog at Le Monde. In the short break he postulated there that he is the dismantling or. Elimination (I.O. "Suppression") The warrant tax for one "historical mistake" hold.

The reactions to the risk to put financial benefits and privileges of the deserted such to the debate came reflexive. They aimed ad personam and were rejected by Gros: "Piketty is not economist" or "No, Mr. Piketty, the degradation of the tax was not a mistake", Etc..

To phanomenly Piketty, last also that his theses are not new. He insisted. The wealth tax as an instrument for the leveling of inequality, he already had in his "capital" presented and already then there was hard criticism of colleagues: "The control concept of Piketty – a gross error!"

Only Sudafrika can pick it up with the inequality in the Middle East

For a few days, an investigation of piketties has now been publicly accessible, which also sets a striking inequality thesis – with a question mark: "Is the Near East the region with the world’s largest inequality?".

Readers who want to see a quick result can be viewed here a short-term basis or equal to the graphics beams below: they show that only Sudafrikas top-10 percent have a slight increase in income.

Both beams, which for the top ten percent of the Middle East as for Sudafrika, the 60 percent mark. West Europe – WOFUR has selected Piketty Germany, Great Britain and France – the USA and Brazil, which is buried for its pronounced inequality, are far below.

In the study itself, the findings of world-growing inequality in the Middle East are made to 26 pages of nearby. The investigation period extends to the years from 1990 to 2016. At the Middle East countries were included in the study: Bahrein, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Palastina, Qatar, Saudi Arabia, Syria, Turkey, the United Arab Emirates and Yemen.

The enormous population growth

The chapter in which the first results are presented (S.16 ff), the "Section 4", written with "Extreme income concentration in the Middle East", Start Piketty and his colleagues Facundo Alvaredo and Lydia Assouad with an interesting observation: So the population in the Middle East from 240 million in 1990 grown to nearly 410 million in 2016. These are about 70 percent. The first conclusion that does not surprise: the increase in average broadcasting is far more modest.

That makes Piketty et al. Once about the reference groove (benchmark) the average purchasing power paritat, which they pretend in the euro preservation, vivid: per adult head is the national income of 20.000 Euro in 1990 to 23.000 grown in 2016 (equivalent to about 15%).

Put the other reference groove with which the team works, the "Market exchange rate", It is based on that the national per capita income of an adult in the countries of the Middle East of less than 9.000 Euro in 1990 to about 10.000 EURO in 2016 has risen.

Purchasing power paritat at three quarters of the average in Europe

More meaningful this will be compared. For both volumes, purchasing power paritat and the market exchange rate, the economists diagnose that they are little surprisingly behind the European average. In 1990, the treasured purchasing power paritat in the Middle East was about ¾ of the average value in Europe; Between 2004 and 2016, it rose to about 65 percent after a mutual racy phase. When the market exchange rate, there are still coarse differences, the values stagnate at 25 to 30 percent of the European comparative figures.

To be captured, so Piketty et al., The fact that the inhabitants of the Lander in the Middle East did not benefit income from growth, but rather on the contrary: the large share of national income has been absorbed by population growth.

The first situation overview follow the nearby comparisons. The approach of piketties, whom he has a pioneering rank – he is not – is not – is to summarize the comparisons of the differences within the land with the comparison of the differences of the landing into an aggregate coarse image, the findings on the inequality in the entire region nearby East meeting. This will then be put in a global comparison.

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