Inequality reaches a record high in the US, but which countries are worst off?

Five years after Lehman Brother's collapse, one group has fared spectacularly well: the richest 1 per cent. The world's superpower is now worryingly dependent on the financial fortunes of just 1.35m taxpayers. But where in the world is inequality the grea

It’s now almost five years since Lehman Brothers collapsed, precipitating a global financial crisis. In the US, one group has fared significantly better than the rest as the country struggles out of recession – the richest 1 per cent.

Recent data from the Internal Revenue Service shows that the incomes of the richest 1 per cent of Americans increased by 31 per cent between 2009 and 2012, while the incomes of the bottom 99 per cent grew less than 1 per cent. There’s a good Economist chart to illustrate this here. The share of national income flowing to the richest 1 per cent has now reached a record high of 19.3 per cent.

So how does this compare internationally? The UK has little reason to feel smug. According to a report this February by the Resolution Foundation, the richest 1 per cent of Britons own 10 per cent of national income.

The Organisation for Economic Cooperation and Development (OECD) warned earlier this year that inequality was increasing across its 34 member countries. It has rated its members according to levels of inequality using the Gini coefficient (which measures the extent to which the distribution of income varies from perfect equality.) The UK ranks 28th out of 34 countries, and the US fares even worse at 31. Only Turkey, Mexico and Chile are more unequal than the US. Meanwhile Slovenia, Denmark and Norway are three OECD nations with the most equal income distribution. You can find the full list here.

The Gini coefficient can’t distinguish between different distributions of inequality, in that it doesn’t tell you if inequality is high because the top 1 per cent hold a huge proportion of national wealth, or if the majority of the country’s wealth is held by the top 25 per cent. The Gini coefficient also depends on up-to-date GDP data, which is especially hard to extract from developing countries. This can sometimes make comparison hard.

The CIA world fact book, for instance, compares 136 countries in terms of inequality, but some of the data it uses is over 15 years old. Here the US ranked 95th out of 136 in terms of inequality, with the UK in 76th place, and Sweden, Slovenia and Montenegro topping the list. The most unequal countries were Lesotho, South Africa and Botswana.

One conclusion that can be drawn is that both the UK and the US may be wealthy nations, but compared to their wealthy peers they stand out because of the wide gap between rich and poor. This has all kinds of implications. Rising inequality raises moral questions about fairness and social justice, and some researchers believe that inequality holds back economic growth. There’s also a worry that as the economic power of the richest 1 per cent increases, their political power increases with it.

In the US, for instance, the richest 1 per cent pay 37.4 per cent of income taxes – leaving the world’s superpower worryingly dependent on the financial fortune of just 1.35 million tax payers. Similarly in the UK, 30 per cent of government tax revenue comes from just 308,000 earners in 2012.
 

A homeless man rests along Wall Street in front of the New York Stock Exchange. Photo: Getty

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

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White supremacists are embracing genetic testing – but they aren't always that keen on the results

Users of far-right site Stormfront are resorting to pseudo science and conspiracy theories when DNA tests show they aren't as “pure” as they hoped.

The field of genomics and genetics have undergone almost exponential growth in recent years. Ventures like the Human Genome Project have enabled t humanity to get a closer look at our building blocks. This has led to an explosion in genetic ancestry testingand as of 6 April 2017 23AndMe, one of the most popular commercial DNA testing websites, has genotyped roughly 2 million customers.

It is perhaps unsurprising that one of the markets for genetic testing can be found among white suprmacists desperate to prove their racial purity. But it turns out that many they may not be getting the results they want. 

Stormfront, the most prominent white nationalist website, has its own definition of those who are allowed to count themselves as white - “non-Jewish people of 100 per cent European ancestry.” But many supremacists who take genetic tests are finding out that rather than bearing "not a drop" of non-white blood, they are - like most of us a conglomerate of various kinds of DNA from all over the world including percentages from places such as sub Saharan Africa and Asia. Few are taking it well.

Dr. Aaron Panofsky and Joan Donovan, of UCLA’s Institute for Society and Genetics and the research institute Data and Society respectively, presented a research study (currently under peer review for publication) at the American Sociological Association a week ago, analysing discussion of GAT on Stormfront forums. Panofsky, Donovan and a team of researchers narrowed down the relevant threads to about 700, with 153 users who had chosen to publish their results online. While Panofsky emphasised that it is not possible to draw many quantitative inferences, the findings of their study offer a glimpse into the white nationalist movement's response to science that doesn't their self perception. 

“The bulk of the discussion was repair talk”, says Panofsky. “Though sometimes folks who posted a problematic result were told to leave Stormfront or “drink cyanide” or whatever else, 'don’t breed', most of the talk was discussion about how to interpret the results to make the bad news go away”.

Overwhelmingly, there were two main categories of reinterpretation. Many responses dismissed GAT as flimsy science – with statements such as a “person with true white nationalist consciousness can 'see race', even if their tests indicate 'impurity'".

Other commentators employed pseudo-scientific arguments. “They often resemble the critiques that professional geneticists, biological anthropologists and social scientists, make of GAT, but through a white nationalist lens", says Panofsky. 

For instance, some commentators would look at percentages of non-European DNA and put it down to the rape of white women by non-white men in the past, or a result of conquests by Vikings of savage lands (what the rest of us might call colonialism). Panofsky likens this to the responses from “many science opponents like climate deniers or anti-vaxxers, who are actually very informed about the science, even if they interpret and critique it in idiosyncratic and motivated ways".

Some white nationalists even looked at the GAT results and suggested that discussion of 100 per cent racial purity and the "one drop" rule might even be outdated – that it might be better to look for specific genetic markets that are “reliably European”, even though geneticists might call them by a different name.

Of course, in another not totally surprising development, many of the Stormfront commentators also insisted that GAT is part of a Jewish conspiracy, “to confuse whites by sprinkling false diversity into test results".

Many of the experts in the field have admitted to queasiness about the test themselves; both how they come to their results and what they imply. There are several technical issues with GAT, such as its use of contemporary populations to make inferences about those who previously lived in different places around the world, and concerns that the diversity of reference samples used to make inferences is not fully representative of the real world. 

There are other specific complications when it comes to the supramacist enthusiasm for GAT. Some already make a tortous argument that white people are the “true people of color" by dint of greater variation in hair and eye color. By breaking up DNA into percentages (e.g. 30 per cent Danish, 20 per cent German), Panofsky says GAT can provide a further opportunity to “appropriate and colonise the discourse of diversity and multiculturalism for their own purposes". There's is also, says Panofsky, the simple issue that “we can’t rely on genetic information to turn white nationalists away from their views."

“While I think it would be nice if the lesson people would take from GAT is that white nationalism is incoherent and wrong. I think white nationalists themselves often take the exact opposite conclusion."