I post a lot about inequality, and I think it's a huge problem, so don't jump down my throat for saying what I'm about to say (or do, but just bear in mind that I'm being a little bit devil's advocatey).
Net worth is tricky to think about. Take me, for example. My net worth is somewhere in the low six figures, or thereabouts. The median debt of a medical school graduate in 2012 was $170,000. Most of those people probably don't have any assests that outstrip that debt load. So, one could write a truthful headline that reads "b_b has higher new worth than bottom 50% of recent medical school grads combined." Would we get much out of it? Probably not, since my income is an immeasurably small fraction of the combined incomes of that group.
I guess my point is that we all know that inequality has gotten ridiculous in the last 30 odd years, and I'm not sure sensationalist headlines really do a lot for anyone. What we need are solutions. For the world's poorest that probably means (for starters) access to credit, rule of law, and guaranteed property rights and land titles. We could tax income over $1,000,000 at 100% here in the US, and it wouldn't do anything for the world's poorest 50% of people.
Agreed with your larger point, just wanted to chip in this good Slate article debunking Hernando de Soto's assertion that pinning down property rights and land titles is somehow the magical antidote to poverty.
Agree that there's no magic bullet to fight poverty. It's a complicated problem that requires a multipronged approach to fight. That said, without rule of law (of which property rights are the most basic component) there is no economic freedom (and no freedom generally, since economic freedom is the basis for all other liberal freedoms).
related listening/reading: http://www.marketplace.org/topics/world/davos-world-economic...
From there:
- "One of the big themes this year is – I kid you not – income inequality," points out John Reeves of The Motley Fool financial services group. "It’s ironical: Income inequality is the theme, and you’ve got to pay $40,000 to go there and weigh in."
It would be much more humorous if it weren't so horrifying.
It is indeed a vicious cycle and I'm not sure how one would propose to break it, especially since money is so closely tied to politics. I doubt there will ever be reforms or political change to combat this problem since those who have the money to affect politics are only going to be quickening the cycle.
Some huge disaster? Aliens? Some outside force that makes every one - rich, poor, white, black, etc - come together as humans? Unfortunately, that's the only thing I can imagine.