I’ve been wondering about the GDP level of countries when excluding the richest 1% of the population.
This is not too easy to find, but I have come across some very interesting information produced by “The World Top Income Database”. The graph shows the income share of the top 1% in a selection of countries I wanted to look at. (For more information please check the data here)
My initial guess would’ve been that the rich in the US are proportionally more rich than the countries in the EU, particularly compared to the most social countries like the Netherlands and Sweden. I also expected an extremely large proportion of the richest 1% in China.
Even though the year 1992 is quite far behind us, I choose this year for the figures because there was the most data for this year. My expectation about the US compared to the EU was correct, but in case of China, when we go as far back as 1992, there isn’t a large proportion in China compared to the EU.
What is also remarkable is Germany at 9.86%. I had expected a percentage closer to that of the Netherlands.
But then I found this table on Inequality watch, and the rate of poverty measured at 50% of median income shows only 4.9% in the Netherlands, while that level is also double at 9.2% in Germany.
This is of course no pledge for or against anything or anyone, however, I do believe it is relevant to put the news on economic development in various countries into perspective.