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While I take your point that wealth is always more unequally distributed than income, income inequality and wealth inequality are definitely related. The degree
by whakim 5y ago
While I take your point that wealth is always more unequally distributed than income, income inequality and wealth inequality are definitely related. The degree to which they're related depends a lot on the tax and regulatory regime. In the United States, income inequality is high relative to most other Western countries, and the top 1% and top 0.1% shares particularly so; this means that if you're at the top of the income distribution you can become wealthy faster. In a country like France, where top marginal tax rates are higher, executive compensation is lower, and estate taxes are less progressive, inheritance and bequests play a (relatively!) more important role in the wealth distribution.