The fairest of them all: why Europe beats the US on equality

Inequality is on the rise across the world, but it’s not increasing everywhere at the same pace. In many ways Europe stands out as a positive exception. Despite all the criticism thrown at the EU, it is a global leader in preserving a degree of fairness in the social fabric. This may seem unlikely – Europe is hardly devoid of problems and tensions. Parts of the left depict it as a vehicle for neoliberal economic policies, and parts of the right deride it as an inefficient administrative monster. So how is Europe really doing?

It’s hard to exaggerate the difference between western Europe and the USA when it comes to inequality. In 1980, these blocs of similar population and average income were also similar in income inequality: the top 1% captured around 10% of national income, while the poorest 50% took around 20%.

Things have changed dramatically since then. Today, the top 1% in Europe take 12% of income (in the US, 20%) while the bottom 50% have 22% (in the US, 10%).


Source : theguardian