This Incredible Chart Explains Almost All of Recent Economic History

Business Insider
Analyzing the top news stories across the web
Jan. 22 2014 10:53 AM

This Chart Explains Almost All of Recent Economic History

This post originally appeared in Business Insider.

Here's a fantastic chart that basically explains all of economic history. It was annotated by James Plunkett, and it's based on a chart from inequality economist Branko Milanovic.

What it shows is income growth between 1988 and 2008 for every income percentile. The chart allows you to see how various income groups have thrived or stagnated over the past few decades (it stops at 2008, but it's safe to surmise the chart doesn't look much different today).

Advertisement

In the chart, you can see how lower income percentiles have seen monster growth since the late 1980s. This growth represents the emerging economies and the rise of the Chinese middle class. Then you have the developed world middle class, which has seen almost no real income growth over the last few decades (which probably explains a lot of the current angst over inequality). And then you have the rise of the ultra-elite, the global 1 percent, which has done fantastically well during all this time.

As Plunkett puts it, every elite in Davos ought to see and understand this chart.

Joe Weisenthal is the executive editor of Business Insider. Follow him on Twitter.

TODAY IN SLATE

Politics

The Irritating Confidante

John Dickerson on Ben Bradlee’s fascinating relationship with John F. Kennedy.

My Father Invented Social Networking at a Girls’ Reform School in the 1930s

Renée Zellweger’s New Face Is Too Real

Sleater-Kinney Was Once America’s Best Rock Band

Can it be again?

The All The President’s Men Scene That Captured Ben Bradlee

Medical Examiner

Is It Better to Be a Hero Like Batman?

Or an altruist like Bruce Wayne?

Technology

Driving in Circles

The autonomous Google car may never actually happen.

The World’s Human Rights Violators Are Signatories on the World’s Human Rights Treaties

How Punctual Are Germans?

  News & Politics
Politics
Oct. 22 2014 12:44 AM We Need More Ben Bradlees His relationship with John F. Kennedy shows what’s missing from today’s Washington journalism.
  Business
Moneybox
Oct. 21 2014 5:57 PM Soda and Fries Have Lost Their Charm for Both Consumers and Investors
  Life
The Vault
Oct. 21 2014 2:23 PM A Data-Packed Map of American Immigration in 1903
  Double X
The XX Factor
Oct. 21 2014 3:03 PM Renée Zellweger’s New Face Is Too Real
  Slate Plus
Behind the Scenes
Oct. 21 2014 1:02 PM Where Are Slate Plus Members From? This Weird Cartogram Explains. A weird-looking cartogram of Slate Plus memberships by state.
  Arts
Brow Beat
Oct. 21 2014 9:42 PM The All The President’s Men Scene That Perfectly Captured Ben Bradlee’s Genius
  Technology
Technology
Oct. 21 2014 11:44 PM Driving in Circles The autonomous Google car may never actually happen.
  Health & Science
Climate Desk
Oct. 21 2014 11:53 AM Taking Research for Granted Texas Republican Lamar Smith continues his crusade against independence in science.
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.