Flat or Falling incomes in advanced economies, says that 97% of the population in Italy, 81% of the population in the US, 70% in the UK and the Netherlands and 63% in France saw flat or falling incomes between 2005 and 2014. For example, the Depression was followed by the welfare state and the sharing of the surplus with workers in the advanced economies. Even under McKinsey Global Institute’s high growth, high productivity scenario, incomes could be falling for 10-20% of income segments in advanced economies, which is still 5-10 times the pre-2005 level. These questions may have one common answer: the fact that between 65% and 70% of households in 25 advanced economies saw their incomes either fall or remain flat between 2005 and 2014. What’s more, the report says that in the worst-case scenario, 70-80% of income groups might not see higher incomes in the coming decade.

Source: Mint July 17, 2016 19:52 UTC