How bad is income inequality? Millennials may be the new peasants.

A new Credit Suisse report shows 27% growth since 2008 in the world’s wealth, with a disproportionately large share going to the already wealthy.

world wealth
(CREDIT SUISSE RESEARCH INSTITUTE)

Unless you're one of a fortunate handful of people, it may surprise you to learn that the world's economy has not only recovered from the global financial meltdown of 2008, but has grown 27% since then, to $280 trillion, according to a new report from Credit Suisse Research Institute. (All graphics in this article are by Credit Suisse, and all figures are presented as USD or percentages.)


In the past 12 months in alone, it's grown by 6.4%.

Most of this growth has even been in the U.S., $8.5 trillion's worth out of the last year's $16.7 trillion.

Interestingly, in terms of household income, Poland's doing the best during this period.

Here's the distribution of money across the globe as it stands now.

So if so much of the world — and the U.S. in particular — is rolling in money, why doesn't life feel any easier for most of us? After all, Credit Suisse says there are 8,740,000 million new millionaires since 2008, and the average wealth per person has hit a new mean of $56,540.

The trick is in that word “mean." That average figure includes everyone, including the wealthiest people. And there's the troubling disconnect. It's a big one, and it's gotten worse since 2008. Right now just 1% of the world's population — the aforementioned rich — own just over half, 50.1%, of all of the world's wealth. That's up from 45.5% in 2001.

From 2000 to 2007, the wealth of the better-off half of the world grew by 7%, while everyone else's worth grew by 12%. But the crisis upset that balance, reducing the world's overall wealth by 12.6% and setting us down a path to ever-growing financial inequality during the recovery.

The report devotes an entire section to the disadvantages faced by those it calls the “unlucky millennials," especially those in North America. Entering the job market during the high-unemployment aftermath of 2008, this group, particularly in their 30s, is struggling with often back-breaking student debt.

The Credit Suisse report summarizes, “Millennials are doing less well than their parents at the same age, especially in relation to income, home ownership and other dimensions of well- being assessed in this report. While Millennials are more educated than preceding generations…we expect only a minority of high achievers and those in high- effectively overcome the 'millennial disadvantage.'"

For those who believe that more money for the top 1% means more jobs for everyone else, the Credit Suisse's report should be eye-opening. It clearly suggests otherwise, with this group only accelerating their own acquisition of wealth.

A brief history of human dignity

What is human dignity? Here's a primer, told through 200 years of great essays, lectures, and novels.

Credit: Benjavisa Ruangvaree / AdobeStock
Sponsored by the Institute for Humane Studies
  • Human dignity means that each of our lives have an unimpeachable value simply because we are human, and therefore we are deserving of a baseline level of respect.
  • That baseline requires more than the absence of violence, discrimination, and authoritarianism. It means giving individuals the freedom to pursue their own happiness and purpose.
  • We look at incredible writings from the last 200 years that illustrate the push for human dignity in regards to slavery, equality, communism, free speech and education.
Keep reading Show less

Mathematical model shows how the Nazis could have won WWII's Battle of Britain

With just a few strategical tweaks, the Nazis could have won one of World War II's most decisive battles.

Photo: Heinrich Hoffmann/ullstein bild via Getty Images
Politics & Current Affairs
  • The Battle of Britain is widely recognized as one of the most significant battles that occurred during World War II. It marked the first major victory of the Allied forces and shifted the tide of the war.
  • Historians, however, have long debated the deciding factor in the British victory and German defeat.
  • A new mathematical model took into account numerous alternative tactics that the German's could have made and found that just two tweaks stood between them and victory over Britain.
Keep reading Show less

New data reveals Earth closer to a black hole and 16,000 mph faster

A new study shows our planet is much closer to the supermassive black hole at the galaxy's center than previously estimated.

Position and velocity map of the Milky Way Galaxy.

Credit: NAOJ
Surprising Science
  • A Japanese radio astronomy project revealed Earth is 2,000 light years closer to the supermassive black hole at the Milky Way's center.
  • The data also showed the planet is moving 7 km/s or 16,000 mph faster in orbit around the Galactic Center.
  • The findings don't mean Earth is in more danger from the black hole but reflect better modeling of the galaxy.
  • Keep reading Show less

    How has technology changed — and changed us — in the past 20 years?

    Apple sold its first iPod in 2001, and six years later it introduced the iPhone, which ushered in a new era of personal technology.

    PEDRO UGARTE/AFP via Getty Images
    Technology & Innovation
    Just over 20 years ago, the dotcom bubble burst, causing the stocks of many tech firms to tumble.
    Keep reading Show less
    Surprising Science

    The magic of mushrooms: A mycological trip

    A biologist-reporter investigates his fungal namesake.

    Scroll down to load more…
    Quantcast