I generally have a strong stance on Capitalism being the best economic system in existence. However, now and then I think it's good to question this, especially when I see things like this, which don't help to proove my point. Basically, most countries on this list are the most capitalist nations in the world- with Hong Kong having the biggest gap, and being the "most Capitalist." I do believe that Capitalism is good for the whole, that it does not cause the rich to get richer, etc. But this shows that the rich are just taking over all of the wealth in these nations. What are your thoughts?
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Countries with the Biggest Gaps Between Rich and Poor
October 21, 2009 by admin  Filed under World
By Bruce Einhorn from Business Week
The U.N. Development Program recently came out with a report looking, among other things, at income inequality worldwide.
The UNDP ranked countries and regions based on a number of factors, including their Gini coefficient, named for Italian statistician Corrado Gini.
We have listed the world’s most advanced economies based on their Gini score, with zero marking absolute equality and 100 absolute inequality. Scandinavian countries, Japan, and the Czech Republic have the least amount of inequality. The U.S. is among the most unequal, but it’s not No. 1. To see which economy is, read on.
Top 11 countries with the biggest gaps between rich and poor:No. 1 Hong KongGini score: 43.4GDP 2007 (US$ billions): 207.2Share of income or expenditure (%)Poorest 10%: 2.0Richest 10%: 34.9Ratio of income or expenditure, share of top 10% to lowest 10%: 17.8
Renowned for its high concentration of Rolls-Royces, expensive real estate, and posh shops, the Chinese special administrative region has plenty of rich who enjoy showing off their wealth. However, Hong Kong also has one of the largest public housing sectors in the world, with about half the population living in government-supported or -subsidized housing estates. The city has no minimum wage—except for domestic helpers from the Philippines, Indonesia, and other countries.
No. 2 SingaporeGini score: 42.5GDP 2007 (US$ billions): 161.3Share of income or expenditure (%)Poorest 10%: 1.9Richest 10%: 32.8Ratio of income or expenditure, share of top 10% to lowest 10%: 17.7
Singapore is one of the world’s most open economies, and it suffered badly following the bankruptcy of Lehman Brothers last year. Recently, though, the city-state’s economy has rebounded, with GDP growing an annualized 14.9% rate in the third quarter compared with the previous quarter.
No. 3 U.S.Gini score: 40.8GDP 2007 (US$ billions): 13,751.4Share of income or expenditure (%)Poorest 10%: 1.9Richest 10%: 29.9Ratio of income or expenditure, share of top 10% to lowest 10%: 15.9
The share of income for the top percentile of Americans was 23.5% in 2007, the highest since 1928, according to Emmanuel Saez, a Berkeley economist who won the prestigious John Bates Clark Medal in April. Income for the top 0.01% hit a record-high 6.04%. And the recession may be exacerbating income inequality.
No. 4 IsraelGini score: 39.2GDP 2007 (US$ billions): 164.0Share of income or expenditure (%)Poorest 10%: 2.1Richest 10%: 28.8Ratio of income or expenditure, share of top 10% to lowest 10%: 13.4
Gone are the days when Israel was one of the world’s most egalitarian societies. Early Labor Zionist pioneers built kibbutzim for Jewish immigrants, but those collectives have fallen on hard times. The growing number of haredim, or ultra-Orthodox Jews, with large families and men who study the Torah rather than work has worsened the inequality problem.
No. 5 PortugalGini score: 38.5GDP 2007 (US$ billions): 222.8Share of income or expenditure (%)Poorest 10%: 2.0Richest 10%: 29.8Ratio of income or expenditure, share of top 10% to lowest 10%: 15.0
While Portugal emerged from recession in the second quarter, the unemployment rate tops 9%. The ruling Socialists retained power in elections last month but lost seats to parties on the far left.
No. 6 New ZealandGini score: 36.2GDP 2007 (US$ billions): 135.7Share of income or expenditure (%)Poorest 10%: 2.2Richest 10%: 27.8Ratio of income or expenditure, share of top 10% to lowest 10%: 12.5
According to the OECD, New Zealand had the biggest rise in inequality among member nations in the two decades starting in the mid-1980s. The country’s economy emerged from recession in the second quarter, but with growth of just 0.1%, the central bank is likely to keep interest rates low until well into 2010.
No. 7 (tie) ItalyGini score: 36.0GDP 2007 (US$ billions): 2,101.6Share of income or expenditure (%)Poorest 10%: 2.3Richest 10%: 26.8Ratio of income or expenditure, share of top 10% to lowest 10%: 11.6
Italians are focused now on the melodrama surrounding embattled Prime Minister Silvio Berlusconi. The political crisis comes at a time when the economy is still mired in recession even as countries like Germany and France are growing again.
No. 7 (tie) BritainGini score: 36.0GDP 2007 (US$ billions): 2,772.0Share of income or expenditure (%)Poorest 10%: 2.1Richest 10%: 28.5Ratio of income or expenditure, share of top 10% to lowest 10%: 13.8
According to Britain’s Institute of Fiscal Studies, a government-funded think tank, the average national income, adjusted for inflation, grew 0.5% between 2004 and 2008. In contrast, the same figure for the top 90% income bracket jumped 1.2% over the same period. That was predominantly driven by large salaries and bonuses from the financial services sector in the pre-credit crunch era.
No. 9 AustraliaGini score: 35.2GDP 2007 (US$ billions): 821.0Share of income or expenditure (%)Poorest 10%: 2.0Richest 10%: 25.4Ratio of income or expenditure, share of top 10% to lowest 10%: 12.5
While developed economies elsewhere fell into recession, the Lucky Country’s good fortune held out, with Australia continuing to grow thanks in part to strong demand from China for its resources. This month the central bank raised interest rates, making Australia a leader among countries moving away from monetary easing.
No. 10 (tie) IrelandGini score: 34.3GDP 2007 (US$ billions): 259.0Share of income or expenditure (%)Poorest 10%: 2.9Richest 10%: 27.2Ratio of income or expenditure, share of top 10% to lowest 10%: 9.4
Put aside the old comparisons to Asia’s tiger economies. Ireland’s workers are suffering badly from the recession; the unemployment rate soared in August to 12.5%. That’s the second-worst in the EU, behind only Spain.
No. 10 (tie) GreeceGini score: 34.3GDP 2007 (US$ billions): 313.4Share of income or expenditure (%)Poorest 10%: 2.5Richest 10%: 26.0Ratio of income or expenditure, share of top 10% to lowest 10%: 10.2
Newly elected Prime Minister George Papandreou’s government faces potential disciplinary action from the European Union, which has reprimanded Greece for a budget deficit of 6% of GDP, twice the EU limit. The IMF projects the economy will shrink 0.8% this year.
http://www.temasekreview.com/2009/10/21/countries-with-the-biggest-gaps-between-rich-and-poor/
No Romeo
I agree that when capitalism is allowed to run ungoverned, there can and most likely will be disaterous results. There is a difference between governing and squashing. Capitalism, with competition, is a great instrument for progress.
1UnDave...RE: Capitalism, with competition, is a great instrument for progress.
AMEN!
2That is an excellent statement. Many feel the only way for true change is to scrap capitalism altogether which is not the answer I believe that Americans desire....I am just hoping our leaders will start listening to us.
I don't like it here. Capitalism is fine and well but I don't go for a run after 5 here. I look over my shoulder to make sure I'm not being followed. I fear my son will be kidnapped so I can't let him outside to play alone with other kids. Look what just happened to that girl in Orange Park. Nice country we have. When I grocery shop, beggars walk up to me desperate here in Tampa. We have the worst maternity leave in the world. We have no decent vacation. (Unless your a teacher or in the military.) As for me? I am on the first plane to the Netherlands where my husband is from for retirement. I can't wait to walk the streets with no fear, have low cost health insurance and let my son out to play soccer in the nearby fields. They said it was the best place to retire in the world in our paper, the St. Pete times last year.
3Well we all can't escape....although I admit that I plan on going to Belise as soon as possible and stay there.
4I am sorry dikke, I am from another country, and NO country beats the U.S. as to its freedom, oportunity, mobility, and standard of living. You are now having many of the same problems in Europe as here in the states with regards to crime. 1 in 5 "Bobbies" in London is now armed, and vehicles are placed in strategic spot around London to bring additiona; weapons to area needed. We have opened our doors to some of the "worst" elements in the world, and do little to stop, convicted criminals from crossing our border virtually at will. There are travel advisories for U.S. residents traveling in Mexico. South and Central America has a disparity between rich and poor that is unconscionable. Lets not even talk about Africa and the middle east. The U.N. set up criteria that excluded every country without a comparatively thriving industrial economy. It is typical U.N. "cherry picking",and twisting of facts to meet an agenda.
5One more thing, I have dual citizenship, and can live and work, and get social services in any E.U. country. I live in the U.S. by choice, not necessity.
6Why is our maternity leave the worst? I will never get that comment. Just because the government does not dictate what a company should be giving a woman who has a child BY CHOICE in leave does not make it the worst. I don't feel people should have to pay for other peoples choices. If you want to have a kid and take off a year then save up for it. If not, take your 2 months or whatever it is and deal. Neither I nor anyone else should have to pay for another persons personal decisions.
BTW, I am 30 weeks pregnant, and still feel this way about maternity leave.
7As for the large gap in wealth of these capitalist societies, one thing to keep in mind is that a lot of these countries have a LARGE influx of immigrants who come in looking for work and opportunities. They did not receive either in their socialistic society, and had to go to a capitalistic society. Also, neither capitalism nor socialism makes a person charitable. That comes from within.
8I think the maternity leave issue is largely dependant on where/who you work for in the US.
As a health care worker I was expected back in 6 weeks post delivery or lose my job. If I had a troublesome pregnancy (which I did) I was stuck with long-term disability BUT you must take all vacation in reserve first.
Long-term disability does not work because you must be out more than 90 days before it kicks in so that is just stupid. The majority of people who have problems in pregnancy typically occur in the last 3 months so you go without any help financially as often it kicks in just as you deliver.
Compare this to my sister who works in a construction company which gave her the entire 9th month off with full pay + full pay during her six weeks post delivery. She was also offered assistance for the first month back at work, allowed to work half days with full pay.
Was this because she had a better paying job than mine? NOPE..in fact I made more money.
Was this because her job required more education? NOPE..in fact she has only a high school diploma.
It is simply corporate verses non corporate and their different climates.
Some countries with socialized medicine DO have better options in maternity, but they also have other drawbacks.
Comparing capitalist v/s socialist aka...nationalized medicine is like comparing an apple to an orange. There are some states here that have some really bruised apples. There are some parts of many countries which have spoiled oranges.
9Cine, that is a great point! Thank you!
10Tiff I'm conjuring up an answer for you. Just give me a while to think it through.
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