Gap has grown across developed economies and US has amongst the highest disparities between rich and poor among developed and developing countries - the 10% richest have 14 times the income as 10% of the lowest – same as Israel and Turkey according to the Organization for Economic Cooperation and Development. The income gap has risen even in traditionally egalitarian countries, such as Germany, Denmark and Sweden, from 5X in the 1980s to 6X today. The gap is 10 to 1 in Italy, Japan, Korea and the United Kingdom. Mexico and Chile are 25X. Brazil’s income gap is now falling although it is still at 50X. Main factors include: ---Greater inequality in wages & salaries; ---High skilled benefitted more from technology advancement than low skilled; ---Rise in non-full time workers but with low pay has extended salary and benefits gap, (even as it has enhanced productivity and presumably flexibility for workers; (Read: - “There is Work, but No Jobs” - diplomaticallyincorrect.org/films/blog_post/there-is-work-but-no-jobs-money-flash-by-ambassador-mo/38809). ---Tax and benefit policy has become less effective in evening out inequalities since the 1990’s particularly a reduction in the benefits as health care even as eligibility requirements continue to tighten; (READ – “Guaranteeing Minimum Health Benefits & Employment/Income?” - diplomaticallyincorrect.org/films/blog_post/guaranteeing-minimum-health-benefits-employmentincome-money-flash-by-ambassador-mo/38385). ---Lower taxes on higher earners. “There is nothing inevitable about high and growing inequalities. Our report clearly indicates that upskilling of the workforce is by far the most powerful instrument to counter rising income inequality. The investment in people must begin in early childhood and be followed through into formal education and work,” according to Angel Gurria, OECD’s Secretary-General. The OECD “underlines the need for governments to review their tax systems to ensure that wealthier individuals contribute their fair share of the tax burden. This can be achieved by raising marginal tax rates on the rich but also improving tax compliance, eliminating tax deductions, and reassessing the role of taxes in all forms of property and wealth.” (Read: - “Global Recession – Best of Times, Worst of Times” - diplomaticallyincorrect.org/films/blog_post/global-recession-best-of-times-worst-of-times-by-ambassador-mo/36338). Link to OECD SG Angel Gurria’s statement & full OECD Report - www.oecd.org/document/7/0,3746,en_2649_201185_49144903_1_1_1_1,00.html By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect”

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