The article in Insider discusses the findings of the 2022 World Inequality Report, which highlights extreme levels of wealth and income inequality globally. The report was coordinated by leading economists and debunks the trickle-down economic theory.

They found that the bottom half of the global population owns just 2% of total wealth, while the top 10% holds 76%. It also notes that billionaires now hold a 3% share of global wealth, up from 1% in 1995. As everyone knows, inequality is a result of political choices and the only way to fix it is through progressive wealth taxes and perhaps even reparations.

The data serves as a complete rebuke of the trickle-down economic theory, which posits that cutting taxes on the rich will "trickle down" to those below, with the cuts eventually benefiting everyone. In America, trickle-down was exemplified by President Ronald Reagan's tax slashes. It's a theory that persists today, even though most research has shown that 50 years of tax cuts benefits the wealthy and worsens inequality.

The researchers are some of the leading minds on inequality in the entire field of economics. Chancel is the co-director of the World Inequality Lab, while Saez and Zucman have literally written a book on the rich dodging taxes and helped create wealth tax proposals for senators like Elizabeth Warren and Bernie Sanders.


Billionaire gains are a well-documented trend: The left-leaning Institute for Policy Studies and Americans for Tax Fairness found that Americans added $2.1 trillion to their wealth during the pandemic, a 70% increase.

Source: Huge 20-Year Study Shows Trickle-Down Is a Myth, Inequality Rampant | Insider

Image: Mathieu Stern