"The way we measure
income inequality is changing. After years of relying on a complicated metric
called the Gini coefficient, some economists argue that we should adopt the
Palma ratio, which measures the gap between the rich and the poor in a society."
"Interestingly, Eastern
Europe scores quite highly as well, as do some post-Soviet countries in Central
Asia. Perhaps that's a legacy of Soviet-era social programs meant to flatten
class divides. But it's also a reminder that, while economic equality is great,
it's not synonymous with a healthy economy."
"The United States doesn't come out of this comparison looking great. It's ranked 44th out of 86 countries, well below every other developed society measured. It's one spot below Nigeria, which has some of the worst political corruption in the world and in 2012 saw nationwide protests over perceived income inequality. The United States' Palma ratio ranks it just beneath Nigeria but above Russia and Turkey -- all countries that have experienced heavy political unrest in recent years."
"The United States doesn't come out of this comparison looking great. It's ranked 44th out of 86 countries, well below every other developed society measured. It's one spot below Nigeria, which has some of the worst political corruption in the world and in 2012 saw nationwide protests over perceived income inequality. The United States' Palma ratio ranks it just beneath Nigeria but above Russia and Turkey -- all countries that have experienced heavy political unrest in recent years."
