Key Data on Inequality Joseph E Stiglitz Montreal

Key Data on Inequality Joseph E. Stiglitz Montreal April 2019

US: bottom 90% have seen little increase in income over last third of a century 2 Source: World Wealth and Income Database

Canada: Bottom 90% have seen little increase in income over the last third of a century Average Income 1600000 Constant 2015 PPP Euros 1400000 1200000 1000000 800000 600000 400000 200000 0 1963 1973 1983 1993 Canada - Bottom 90% 2003 Canada - Top 1% 2013 2023 Source: World Wealth and Income Database 3

Top 1% income share in the United States 1913 -2015 Note: Fiscal income is defined as the sum of all income items reported on income tax returns, before any deduction. It includes labour income, capital income and mixed income. The concept of fiscal income varies with national tax legislations, so in order to make international comparisons it is preferable to use the concept of national income. The population is comprised of individuals over age 20. The base unit is the individual (rather than the household) but resources are split equally within couples. Source: World Wealth and Income Database 4

Top 1% income share in Canada 1913 -2015 Note: Fiscal income is defined as the sum of all income items reported on income tax returns, before any deduction. It includes labour income, capital income and mixed income. The concept of fiscal income varies with national tax legislations, so in order to make international comparisons it is preferable to use the concept of national income. The population is comprised of individuals over age 20. The base unit is the individual (rather than the household) but resources are split equally within couples. Source: World Wealth and Income Database 5

Europe: Less increase in inequality in some countries than in others Average income 700000 Constant 2016 PPP Euros 600000 500000 400000 300000 200000 100000 0 1963 1973 1983 1993 2003 2013 France - Top 1% Germany - Top 1% Spain - Top 1% UK - Top 1% France - Bottom 90% Germany - Bottom 90% Spain - Bottom 90% UK - Bottom 90% 2023 Source: World Wealth and Income Database 6

Labor Share Comparison 7 Source: Olivier G. Giavonnoni

8 Source: Olivier G. Giavonnoni

Labor Share for Canada 9 Source: Lemieux and Riddell

10 Source: Olivier G. Giavonnoni

US: Disconnect Between Productivity and a Typical Worker’s Compensation, 1948 -2015 11

Inequality is a decades-long trend, with more and more going to the very top 12

Inequality even at the top 0. 1% 13

Stagnation: U. S. median household income (constant 2016 US$) 2016: $59, 039 1996: $54, 105 Median Household Income in the US $ 60 000 $ 58 000 $ 56 000 $ 54 000 $ 52 000 $ 50 000 $ 48 000 $ 46 000 $ 44 000 2016 2014 2012 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 Growth of 0. 44% per year in past 20 years Source: U. S. Census Bureau Note: Data is adjusted for the methodological change of 2013 14

Stagnation: Canadian median income in economic family and persons, not in economic family (constant 2017 dollars) 80000 2017 Constant Dollars 70000 60000 50000 Growth of 1. 2% per year in past 20 years 40000 30000 20000 10000 0 1966 1976 1986 1996 2006 2016 2026 Source: Statistics Canada 15

US: Median income of a full-time male worker is at the level it was more than 4 decades ago (constant 2016 US $) $ 60 000 $ 55 000 $ 50 000 $ 45 000 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 $ 40 000 Note: Data is adjusted for the methodological change of 2013 Source: U. S. Census Bureau 16

Canada: Median income of a male, age 25 -54, is lower than the level it was more than 4 decades ago (constant 2017 Canadian $) 70000 2017 Constant Dollars 60000 50000 40000 30000 20000 10000 0 1966 1976 1986 1996 2006 2016 2026 Source: Statistics Canada 17

US: Real wages at the bottom are at the level that they were roughly sixty years ago US Minimum Wage 14 12 2017 Dollars 10 8 6 4 2 0 01 - 01 - 01 - 01 - 01 - 01 - 01194 195 195 196 196 197 197 198 198 199 199 200 200 201 201 6 9 2 5 8 1 4 7 0 3 6 9 2 5 8 Source: Federal Reserve 18

Canada: Real wages at the bottom for Ontario $14, 00 $12, 00 Constant Dollars $10, 00 $8, 00 $6, 00 $4, 00 $2, 00 $0, 00 12. 2. 1973 5. 25. 1979 11. 14. 1984 5. 7. 1990 10. 28. 1995 4. 19. 2001 10. 2006 4. 1. 2012 9. 22. 2017 Source: Statistics Canada 19

The Walton Family and The Koch Brothers have a net worth of $212 billion in 2016 That’s the net worth of 115 million Americans or 35% of the country. The Walton Family The Koch Brothers 20

21 Source: Olivier G. Giavonnoni

22 Source: Olivier G. Giavonnoni

Even health and life expectancy is in decline • Especially surprising data on white males • Reflecting social diseases— alcoholism, drugs, suicide 23

24 Source: “Mortality and Morbidity in the 21 st Century”, Anne Case and Angus Deaton, Brookings Papers on Economic Activity, March 17, 2017

25 21 st Source: “Mortality and Morbidity in the Century”, Anne Case and Angus Deaton, Brookings Papers on Economic Activity, March 17, 2017

Source: “Mortality and Morbidity in the 21 st Century”, Anne Case and Angus Deaton, Brookings Papers on Economic Activity, March 17, 2017 26

Source: “Mortality and Morbidity in the 21 st Century”, Anne Case and Angus Deaton, Brookings Papers on Economic Activity, March 17, 2017 27

Source: “Mortality and Morbidity in the 21 st Century”, Anne Case and Angus Deaton, Brookings Papers on Economic Activity, March 17, 2017 28

Income inequality and earnings mobility Income inequality (from LIS) 29 Source; Janet Gornick; OECD 2008. Growing Unequal: Income Distribution and Poverty in OECD Countries. Paris: OECD

30

Source: OECD Income Distribution Database 31

Global Income Growth by Percentile 32 Source: World Inequality Report 2018, Branko Milanovic

Global Inequality • Oxfam reports on wealth concentration at the top: how many of the richest people have as much wealth as bottom 50% (3. 8 billion people!) • In 2010: 388 • In 2017: just 42 • 2018: just 26 • 82% of all growth in global wealth in 2016 went to the top 1%, while the bottom half saw no increase at all. • The richest 1% continue to own more wealth than the whole rest of humanity. 33