Posts Tagged ‘inequality’

The Working Women of Pakistan

Monday, December 27th, 2010

In Pakistan, women are beginning to leave the confines of their homes to enter the labor force for the first time. You can meet some of them and hear their stories by clicking play.

Unfortunately, it’s not all progress and economic prosperity – Pakistan has an entrenched culture of male dominance that says women shouldn’t be seen OR heard. Women who work in public are routinely harassed and even beaten up by their male family members and strangers.

But how awesome would it be if Pakistan opened up its economy to the other half of the population? Talk about doubling your productivity and improving millions of lives.

How can you help? Try donating to organizations that promote education for girls, or get involved in microfinance projects that focus on giving female entrepreneurs a chance.

Rising Income Inequality Hurts Everyone

Monday, October 18th, 2010

Research shows that inequality is bad in any number of circumstances. So why are we so reluctant to look at the effects of excessive wage inequality in the U.S.?

  • Unlike economists throughout history, modern economists seem unwilling to address the negative effects of rising income inequality. There is no convincing evidence that shows it supports economic or individual success in America, but experts in this case avoid making value judgments when it comes to money.
  • Studies show that money can buy happiness – up to a point. But because of hugely inflated wages for the extremely wealthy, Americans become trapped in a cycle: their peers spend ever-increasing amounts of money on their lifestyles simply because they can, and everyone who can afford it follows suit.
  • This cycle trickles down from class to class in “expenditure cascades,” until soon enough everyone feels the psychological distress of never having enough. This distress results in higher divorce rates, longer commutes, and voters who are less interested in spending on public services like road rehabilitation.

Facts & Figures

  • In 1976, 8.9% of the country’s income went to the top 1% of earners.
  • In 2007, 23.5% of the country’s income went to the top 1%.
  • Between 1976 and 2007, the average hourly wage went down by more than 7%.