This visualization is motivated by the notion that
Globalization is what's causing income inequality in America.
Simply put, there is a view that trade agreements have allowed cheaper goods to come into U.S. shores, thus killing domestic jobs in factories, manufacturing, agriculture, automation, etc. So, while the richest Americans, (or the 1%) keep on getting richer, the common worker (or the 99%) is left behind.
To investigate, I plotted the countries of the world on an axis, with globalization on the X, and equality on the Y. And as a tribute to my data hero Hans Rosling (RIP) , I allow these plots to play out over time, to see how inequality has changed with globalization.
I also used three measures of globalization.
- Trade, or opening one's borders to the flow of goods;
- Finance, or reducing restrictions on the flow of money;
- Migration, or opening one's borders to people (potentially a source of productive labor for the economy).
Explore on your own!
- Notice that different income groups have different responses to globalization:
As low-income economies globalize, they become more unequal.
In contrast, emerging economies seem to have more equal societies in line with a globalized economy.
Advanced economies do not seem to be greatly impacted by income inequality.
IMF's World Economic Outlook database. Available on data.imf.org; World Bank's WDI; and the Chinn-Ito Database.