(Thread)
The table below is useful to situate Western income distribution within global income distribution and to realize the problems linked with the idea of degrowth (i.e., of keeping global income fixed).
The table below is useful to situate Western income distribution within global income distribution and to realize the problems linked with the idea of degrowth (i.e., of keeping global income fixed).
Column 1 shows that an average-income WENAO citizen is about three times as rich as an average person in the world ($52/$16=3.2), and the median income WENAO person is about 6 times better off than the global median person ($41/$7).
Column 2 shows that a median-income WENAO person is at the 90-91 global percentile. If the entire world were to be "allowed" to have income of the median WENAO person, world total GDP would have to rise 2.6 times ($41/$16).
If one thinks this is incompatible with climate-change objectives and we have to keep global GDP fixed, but allow poor peoples' incomes to rise, that would imply that 88% (100%-12%) of WENAO population must have their incomes reduced.
This is shown in Column 3: the global mean income located within WENAO distribution would be at the 12th percentile only.
Hence a clear trade-off:
Either:
let global GDP increase 2-3 times
or
make almost 90% of the rich most of them living in WENAO have their incomes reduced.
Hence a clear trade-off:
Either:
let global GDP increase 2-3 times
or
make almost 90% of the rich most of them living in WENAO have their incomes reduced.
By how much?
Income of the median-income WENAO person would have to go down by about 60% (from $41 to $16). For the mean-income person in WENAO, the cut would be 70% (from $52 to $16). Those richer would have to lose 4/5 of their income or more.
How politically feasible is it?
Income of the median-income WENAO person would have to go down by about 60% (from $41 to $16). For the mean-income person in WENAO, the cut would be 70% (from $52 to $16). Those richer would have to lose 4/5 of their income or more.
How politically feasible is it?
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