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.

Study: Unattractive people far overestimate their looks

The finding is remarkably similar to the Dunning-Kruger effect, which describes how incompetent people tend to overestimate their own competency.

Sex & Relationships
  • Recent studies asked participants to rate the attractiveness of themselves and other participants, who were strangers.
  • The studies kept yielding the same finding: unattractive people overestimate their attractiveness, while attractive people underrate their looks.
  • Why this happens is unclear, but it doesn't seem to be due to a general inability to judge attractiveness.
Keep reading Show less

Astronomers find more than 100,000 "stellar nurseries"

Every star we can see, including our sun, was born in one of these violent clouds.

Credit: NASA / ESA via Getty Images
Surprising Science

This article was originally published on our sister site, Freethink.

An international team of astronomers has conducted the biggest survey of stellar nurseries to date, charting more than 100,000 star-birthing regions across our corner of the universe.

Stellar nurseries: Outer space is filled with clouds of dust and gas called nebulae. In some of these nebulae, gravity will pull the dust and gas into clumps that eventually get so big, they collapse on themselves — and a star is born.

These star-birthing nebulae are known as stellar nurseries.

The challenge: Stars are a key part of the universe — they lead to the formation of planets and produce the elements needed to create life as we know it. A better understanding of stars, then, means a better understanding of the universe — but there's still a lot we don't know about star formation.

This is partly because it's hard to see what's going on in stellar nurseries — the clouds of dust obscure optical telescopes' view — and also because there are just so many of them that it's hard to know what the average nursery is like.

The survey: The astronomers conducted their survey of stellar nurseries using the massive ALMA telescope array in Chile. Because ALMA is a radio telescope, it captures the radio waves emanating from celestial objects, rather than the light.

"The new thing ... is that we can use ALMA to take pictures of many galaxies, and these pictures are as sharp and detailed as those taken by optical telescopes," Jiayi Sun, an Ohio State University (OSU) researcher, said in a press release.

"This just hasn't been possible before."

Over the course of the five-year survey, the group was able to chart more than 100,000 stellar nurseries across more than 90 nearby galaxies, expanding the amount of available data on the celestial objects tenfold, according to OSU researcher Adam Leroy.

New insights: The survey is already yielding new insights into stellar nurseries, including the fact that they appear to be more diverse than previously thought.

"For a long time, conventional wisdom among astronomers was that all stellar nurseries looked more or less the same," Sun said. "But with this survey we can see that this is really not the case."

"While there are some similarities, the nature and appearance of these nurseries change within and among galaxies," he continued, "just like cities or trees may vary in important ways as you go from place to place across the world."

Astronomers have also learned from the survey that stellar nurseries aren't particularly efficient at producing stars and tend to live for only 10 to 30 million years, which isn't very long on a universal scale.

Looking ahead: Data from the survey is now publicly available, so expect to see other researchers using it to make their own observations about stellar nurseries in the future.

"We have an incredible dataset here that will continue to be useful," Leroy said. "This is really a new view of galaxies and we expect to be learning from it for years to come."

Protecting space stations from deadly space debris

Tiny specks of space debris can move faster than bullets and cause way more damage. Cleaning it up is imperative.

Videos
  • NASA estimates that more than 500,000 pieces of space trash larger than a marble are currently in orbit. Estimates exceed 128 million pieces when factoring in smaller pieces from collisions. At 17,500 MPH, even a paint chip can cause serious damage.
  • To prevent this untrackable space debris from taking out satellites and putting astronauts in danger, scientists have been working on ways to retrieve large objects before they collide and create more problems.
  • The team at Clearspace, in collaboration with the European Space Agency, is on a mission to capture one such object using an autonomous spacecraft with claw-like arms. It's an expensive and very tricky mission, but one that could have a major impact on the future of space exploration.

This is the first episode of Just Might Work, an original series by Freethink, focused on surprising solutions to our biggest problems.

Catch more Just Might Work episodes on their channel:
https://www.freethink.com/shows/just-might-work

Personal Growth

Meet the worm with a jaw of metal

Metal-like materials have been discovered in a very strange place.

Quantcast