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Episode 186: Nativism in Media (Part III) - IMF, NAFTA and Global Inequality By Design

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CHAPTER

The Importance of Absolute or Relative Measures in Inequality

The United States already has so much more wealth than the rest of the world, it doesn't make sense to say that inequality has declined when there has been a $17,000 increase in the scale of the gap between the US and the global south. If you are Bill Gates or if you're a rich middle class consumer in the United States or Australia, it might make sense to use a relative metric because you might think our my income should continue to grow at the same speed as people in the global South. What's going to matter more I would argue is the absolute gap. It matters a great deal as you also note with how you measure things like extreme poverty.

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