USA Economy: US becoming 'world champion of extreme inequality' under Donald Trump, says UN poverty envoy - by Philip Alston

The United States under Donald Trump is fast becoming “the champion of inequality”, according to a scathing report by the United Nation’s expert on poverty.
 
While the US is one of the richest nations, entrenched poverty already experienced by many will be made worse by policies promoted by Mr Trump and the Republicans, in particular a planned tax overhaul that critics say gives huge cuts to the wealthy, it added.

“The American dream is rapidly becoming the American illusion, as the United States now has the lowest rate of social mobility of any of the rich countries,” said Philip Alston the UN Nations Special Rapporteur on extreme poverty and human rights.

For the complete report on Mr. Alston's investigative visit go to http://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=22533&LangID=E 

Note EU-Digest: the obvious question the EU Commission and EU member states should ask themselves -"Isn't it important to urgently develop and maintain an independent economic and political course for Europe which benefits all its citizens? 

Read more: US becoming 'world champion of extreme inequality' under Donald Trump, says UN poverty envoy | The Independent

USA: Have and have not's: There's a large group of Americans missing out on the American dream

There’s a growing tendency for mainstream economists, including several of those at the Federal Reserve, to dismiss all income disparities as the product of a skills- or education gap, a misleading explanation given weak wage growth that points to ongoing weakness in the job market. 
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So it was relieving to see, tucked in the US central bank’s latest semi-annual report to Congress on monetary policy, an analysis of recent inequality research that refutes the idea that education is the only factor behind income inequality. Race, unsurprisingly, also plays a major role, as do social and economic measures, including taxation, interest rates, and labor policies. The Fed states:

“The persistent gaps in economic outcomes by race and ethnicity in the United States raise important questions about how people ascend the economic ladder. Education, particularly a college degree, is often seen as a path to improved economic opportunities.

“However, while education continues to be an important determinant of whether one can climb the economic ladder, sizable differences in economic outcomes across race and ethnicity remain even after controlling for educational attainment. Data on earnings for two cohorts of young adult workers (aged 25 to 34) approximately a generation apart confirm both the gaps in economic outcomes and the lack of substantial upward progress for disadvantaged groups over the past quarter-century.”

Foto: source Federal Reserve 

“Overall, the representation of black and Hispanic workers in the top earnings quartile continues to lag in the later period,” the report adds.

For the complete detailed report click here: There's a large group of Americans missing out on the American dream

Global Economy: Half of world's wealth now in hands of 1% of population – by Jill Treanor

Global inequality is growing, with half the world’s wealth now in the hands of just 1% of the population, according to a new report.

The middle classes have been squeezed at the expense of the very rich, according to research by Credit Suisse, which also finds that for the first time, there are more individuals in the middle classes in China – 109m – than the 92m in the US.

Tidjane Thiam, the chief executive of Credit Suisse, said: “Middle class wealth has grown at a slower pace than wealth at the top end. This has reversed the pre-crisis trend which saw the share of middle-class wealth remaining fairly stable over time.”

The report shows that a person needs only $3,210 (£2,100) to be in the wealthiest 50% of world citizens.

About $68,800 secures a place in the top 10%, while the top 1% have more than $759,900. The report defines wealth as the value of assets including property and stock market investments, but excludes debt.
About 3.4 bn people – just over 70% of the global adult population – have wealth of less than $10,000. A further 1bn – a fifth of the world’s population – are in the $10,000-$100,000 range.

Each of the remaining 383m adults – 8% of the population – has wealth of more than $100,000. This number includes about 34m US dollar millionaires. About 123,800 individuals of these have more than $50m, and nearly 45,000 have more than $100m. The UK has the third-highest number of these “ultra-high net worth” individuals.

Read more: Half of world's wealth now in hands of 1% of population – report | Money | The Guardian