From super-economy, hat tip: Tyler Cowen
Sweden is known for income equality. Increasingly, studies also point to Sweden as a country characterized by high intergenerational mobility of income. Income-distribution and wealth distribution are however not the same thing. What some may not know is that wealth-inequality is relatively high in Sweden. The top one percent own around 35% of wealth in the United States. In Sweden, because of extensive tax evasion, the number is harder to calculate. When including estimates of wealth held outside of Sweden, Roine and Waldenström estimate that the top one percent richest Swedes own 25-40% of total wealth, not far from American inequality levels, and increasing more rapidly.
At the same time, the intergenerational mobility of top wealth is chokingly low. A recent studyfound that a astonishing 80-90% of inequality of top wealth is transmitted to the next generation in Sweden!
According to one study the share of the richest Swedes who inherited their wealth is around, 2/3 with 1/3 being entrepreneurs, while in the United States it was the opposite, with 1/3 of the wealthiest inherited their wealth while around 2/3 are entrepreneurs.
It is popular to cite startling facts about wealth inequality, but few actually know what they mean. “What does it mean?” should be question #1 for anyone who takes this stuff seriously (few people). It becomes worse than ignorance when they switch between wealth and income depending on if they want to scare people with absolute figures (use wealth), or compare them to Nordic countries (use income). This stupidly popular video commits this sin worse than ignorance. What people think they’re citing is the standard of living of the rich vs. poor, which in fact is captured by the stat that’s virtually never cited – consumption inequality.
