To wrap up our week of discussing wealth and race, I thought a global perspective might be fitting. When discussing issues of race and wealth, inequality creeps up pretty quickly. I found some great stats on international and domestic inequalities.

Domestic Inequalities
According to The Economist, between 2002 & 2005, American corporate profits rose by 60%, wage income by only 10%.

The top one percent of Americans now make more money than the bottom 40 percent. That’s roughly three million people out-earning 110 million.

Wealth differences along racial and ethnic lines are even more striking. A 6-to-1 gap between whites and African-Americans. 11-to-1 between whites and Latinos. It seems this analysis is shows a difference from our post the other day that showed Latinos consistently earning more than Blacks.

Global Inequalities
According to the UNDP Human Development Report (HDR) 2005 only 9 countries (4% of the world’s population) have reduced the wealth gap between rich and poor, whilst 80% of the world’s population have recorded an increase in wealth inequality. The report states that ‘the richest 50 individuals in the world have a combined income greater than that of the poorest 416 million. The 2.5 billion people living on less than $2 a day – 40% of the world’s population – receive only 5% of global income, while 54% of global income goes to the richest 10% of the world’s population.

‘The Inequality Predicament’, identifies non-economic aspects of global inequality (such as inequalities in health, education, employment, gender and opportunities for social and political participation), as causing and exacerbating poverty.

Food for thought!

Miel

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

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