It is true that in human development indicators many countries have improved compared to previous decades. Nevertheless, in terms of inequality, according to the Global Competitiveness Report 2017-2018, “Globally, inequality has decreased over decades, because the growth of the very poor and highly populated economies of Asia has been higher than the growth rates of the advanced economies, bringing about what economists have dubbed “the great convergence”. Within countries, however, inequality has on average increased. In many advanced economies, income inequality has widened or plateaued at a high level in the last two decades, with large regional discrepancies, for example between rural and urban areas-as richer households pull away from their middle- and lower-income peers. The trend is more mixed for emerging economies, because there are absolute levels of inequality remain much higher than in advanced countries. In countries where data allow comparisons, wealth is significantly more unequally distributed than income.”
If this is true, the future question is whether the current economic system will allow these inequalities to continue growing. Despite being a controversial author, Thomas Piketty points out in his 1997 book: “The economy of inequalities” points out that “the current economic system has increased inequality due to tax reforms of the last three decades that eased tax burdens on the richest sectors of society.” In a few words, Piketty pointed out that if society continued on that path, it will tend to be an oligarchy of inherited wealth. Now, although it is true that Piketty wrote this more than 20 years ago and some of the reforms he mentions have been modified, we can currently observe a return to this approach, such as the recent US tax reform proposed by Trump, in which one of the important points is the greater exemption to the inheritances and taxes on the wealth of the richest sector of the USA.