Where financial inequality is rampant
There is increasing recognition that GDP measures or GDP per capita are insufficient when it comes to understanding the true economic well-being of households. That has resulted in research becoming increasingly focused on household income with a higher emphasis on income inequality. A recent OECD paper analyzed the distribution of household wealth across 28 countries and it found that wealth inequality is twice the level of income inequality on average.
One of its key findings was that the wealthiest 10% of households hold 52% of total household wealth on average. By contrast, the 60% least wealthy households only own about 12%. The situation is by far the worst in the United States where the richest 10% of households own 79% of the wealth. The bottom 60% of American households only own 2.4% of household wealth.
is the same in Europe where of households is negative, meaning that on average, they have liabilities exceeding the value of their assets. (Source: Statista)
the inequality gap is particularly wide in some countries. In the Netherlands, 68% of wealth is owned by the top 10% of households while in Denmark, the figure is 64%. The OECD found that in both countries, the share of wealth held by the bottom 60%