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Wealth and history: A reappraisal

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  • Waldenström, Daniel

Abstract

The study revisits trends and drivers of wealth inequality and accumulation since the onset of industrialization. Empirical analysis reveals that Western countries are both wealthier and more equal today than a century ago. Wealth concentration has declined in all countries over the past century, remaining at historically low levels in Europe, while rising in the United States. These trends are largely driven by new wealth accumulation among the lower and middle classes, primarily through housing and pension savings, rather than a decline in the fortunes of the affluent. The findings challenge the view that unregulated capitalism inevitably leads to extreme wealth concentration and question the idea that wealth equalization requires shocks to capital, such as wars or progressive taxation. Instead, the evidence emphasizes the equitable effects of economic and political institutions that enable ordinary individuals to build personal wealth.

Suggested Citation

  • Waldenström, Daniel, 2024. "Wealth and history: A reappraisal," Explorations in Economic History, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:exehis:v:94:y:2024:i:c:s0014498324000500
    DOI: 10.1016/j.eeh.2024.101624
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    More about this item

    Keywords

    Wealth inequality; Capital accumulation; Wealth–income ratios; Economic history;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative

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