ABSTRACT
Commentaries about wealth inequality are often replete with remarks such as ‘25% of the world’s population live on less than US$ 1.00 per day’ or ‘The richest 10% of the population controls 50% of the wealth.’ However, such observations often lack analytical rigour, and this makes it impossible to meaningfully compare nations globally. For instance, Cubans have much less disposable income than, say, Canadians, but are they less wealthy? The answer depends on how one measures wealth. In a socialist economy, the citizens do not pay most of the cost of things like schooling, medical care, housing, etc. These items certainly cost money, but most of the money does not come out of the income of individual citizens.
