ABS201Y1 Lecture Notes - Lecture 1: Thomas Piketty, Wealth Concentration, Progressive Tax
Document Summary
Reflection on the readings of september 29: income, wealth and poverty. The readings by grabb and guppy (2009) and piketty and saez (2006) highlight the growing income inequality and wealth concentration among the top 1% in western countries. Cumulatively, the two readings provide evidence and understanding of the meaning of the 99% - 1% slogan used by occupy toronto and other cities. Piketty and saez (2006) demonstrate historically how incomes of the top 1% have evolved over years in western countries. However, countries like sweden and france, which have embraced progressive taxation, registered falling income inequality. This view is supported by grabb and guppy (2009), who found that the top 1% in sweden took home 20% of total income. Guppy document that wealth is more unequal than income partly because wealth is mostly inherited by the privileged few, who enjoy economic power.
