• 24/04/2024 07:51

The poor also hide their income: new research destroys the theory of wealth inequality

 The poor also hide income: new research destroys the theory of wealth inequality

According to researchers, as a result of globalization, the phenomenon of a global new middle class has emerged.

The more poor As people move away from their poverty and closer to the community of the rich, the more they tend to hide their income. Thus, the difference between rich and poor is not growing at a breakneck pace due to globalization.

This is stated in a study by economists at Columbia University and the New York Federal Reserve, who have long studied the real incomes of residents of different countries of the world, writes Economist.

Previously, it was believed that a significant number of elites in states hide their income. They use tax havens and various ways to avoid demonstrating their real wealth. As a result, the real picture of wealth and poverty is distorted.

However, a new study has found that poor people also tend to hide their real wealth.

“When a subsistence farmer becomes a small business owner or enters the market, he has more complex income streams and greater incentives to mislead tax officials,” the publication noted.

Household surveys were used for comparison and real GDP. If these data do not match, this indicates income concealment.

If we examine this as a working hypothesis and apply it to statistical indicators, it turns out that inequality has leveled out much more between countries, and the gap between rich and poor is not growing at a frantic pace as a result of globalization.

According to researchers, as a result of globalization, the phenomenon of a global new middle class has emerged, which will not be plunged into total poverty as a result of the financial crisis or pandemic.

At the same time At the same time, this is only a version that does not claim to be a 100% reflection of globalization processes.

Recall that because of the war that Russia unleashed, about 20 million Ukrainians found themselves below the poverty line. This is about 67% of the population of our state. These are the data of the Institute of Demography and Social Research.

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