Wednesday, March 07, 2018

Gini


The Gini coefficient is a statistical attempt to measure the income or wealth inequality of a nation's residents. Zero suggests perfect equality, and zero incentive for anyone to 'do better'. 100% suggests one person owns and accumulates everything, and no one else has, or can get, anything. Zero incentive for anyone to do anything. In a world with only Alexander the Great and the Buddha, both would likely be happy with 100% Gini. In a world with 0% Gini, Lex would be grumpy. Global Inequality is now falling. Over the decade from 2003 to 2013 it went from 68.7% to 64.7%. That is the good news. The bad news is we tend to compare ourselves locally even though we live globally. South Africa leads the global charts for National inequality at 63.4%, roughly the same as Global Inequality. It isn't falling. SA takes Global Inequality and shoves it in your face.


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