Understanding Income Inequality and Globalization

The video discusses the rise in income inequality in the US from the 1980s to 2015, highlighting the shift in income distribution towards the top ten percent. It contrasts historical views on inequality by Marx and Kuznets, emphasizing the role of institutions and policies in shaping inequality. The video explores how unequal access to education perpetuates inequality and examines the tendency of capital returns to exceed economic growth, leading to wealth concentration. It argues against blaming globalization alone for rising inequality, noting that different policies can mitigate its effects, as seen in Europe and Japan.

What was the change in the share of total income going to the top ten percent in the United States from the 1980s to 2015?

• From one third to one quarter

• From one third to one half

• From one half to one third

• From one quarter to one third

According to Marx, how would inequality change over time?

• It would decrease

• It would rise forever

• It would fluctuate

• It would remain constant

What does Kuznets suggest about the natural forces affecting inequality?

• They would cause inequality to fluctuate

• They would increase inequality

• They would have no effect

• They would decrease inequality

What is a significant factor preventing inequality from decreasing, according to the video?

• Corporate governance

• Globalization

• Unequal access to education

• Taxation policies

What percentage of children from wealthy families attend college?

• 50%

• 70%

• 100%

• 30%

What economic factor can lead to a high concentration of wealth?

• Increased labor income

• Rate of return on capital exceeding growth rate

• High economic growth

• Low interest rates

Which policy is suggested to regulate wealth concentration dynamics?

• Regressive taxation

• Progressive taxation

• No taxation

• Flat taxation

What is a common misconception about globalization and inequality?

• Globalization inevitably increases inequality

• Globalization has no effect on inequality

• Globalization decreases inequality

• Globalization only affects developed countries

Which regions are mentioned as having different inequality outcomes despite globalization?

• Middle East and North America

• Asia and Australia

• Europe and Japan

• Africa and South America

What is necessary to ensure more people benefit from globalization?

• Higher minimum wages

• Strong democratic institutions and policies

• Reduced taxation

• Increased corporate governance