tag:blogger.com,1999:blog-8732662769765511163.post7617767661858839368..comments2023-07-31T11:06:29.485+02:00Comments on Transition: To Have And Have NotD. Mario Nutihttp://www.blogger.com/profile/17319653816487296802noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8732662769765511163.post-78523995231271972332009-04-27T16:19:00.000+02:002009-04-27T16:19:00.000+02:00More precisely:
“An additional 55 to 90 million p...More precisely: <br />“An additional 55 to 90 million people will be trapped in extreme poverty [under $1.25 per day] in 2009. The number of chronically hungry people is expected to climb to over 1 billion this year.” … “No one knows how long this crisis will last. We also do not know the pace of the recovery. The committee therefore supported the World Bank’s plans to make full use of IBRD’s balance sheet to increase lending by up to $100 billion over three years.” <br />Development Committee Press Conference - Remarks by World Bank President Robert B. Zoellick, April 26, 2009, http://www.worldbank.org/D. Mario Nutihttps://www.blogger.com/profile/17319653816487296802noreply@blogger.comtag:blogger.com,1999:blog-8732662769765511163.post-75374749855893580402009-04-27T09:17:00.000+02:002009-04-27T09:17:00.000+02:00One-handed? I take this as a compliment, thanks.
...One-handed? I take this as a compliment, thanks.<br /><br />Household wealth reported by Davies et al. 2008 is net of liabilities; once you have deducted outstanding mortgage loans and other liabilities such as credit cards, house ownership does not do much to reduce wealth inequality.<br /><br />Moreover these are 2000 data, since then the fall in house prices will have placed many house owners in the range of negative equity. Though I doubt whether household wealth data are designed to pick negative wealth, which would result in the Lorenz curve starting not from zero but from a negative ordinate - possible, but I have never seen it.<br /><br />Those who have will have lost wealth as a result of the crisis; Forbes reported the fall in the number of billionaires. Those who have no wealth lose nothing. If negative wealth is not reflected in wealth data, or is lost in the aggregation of the poorest deciles, the crisis will have, or will appear to have, reduced wealth inequality, as I argued in my post. <br /><br />The impact of the crisis on poverty of course is highly negative. Over the week-end the press reported that the World Bank estimates an increase of 50 million in people below the extreme poverty line in 2008. but I have not yet verified the source.D. Mario Nutihttps://www.blogger.com/profile/17319653816487296802noreply@blogger.comtag:blogger.com,1999:blog-8732662769765511163.post-51695992103856160592009-04-26T22:00:00.000+02:002009-04-26T22:00:00.000+02:00Clearly you are what Wiston Churchill would have c...Clearly you are what Wiston Churchill would have called a "one-handed economist".<br /><br />How do you reconcile the reportedly high wealth inequality in Europe with dominant home ownership there?Anonymousnoreply@blogger.com