The “elephant chart.” It has been used since 2012 to explain how capitalism causes income inequality, which in turn has been a top political issue, picked apart, dramatized and demonized by social justice warriors for years. It turns out that that chart was wrong, and economists are back to square one in explaining income equality.
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Economist Branko Milanovic first published the chart in a 2012 World Bank working paper, Bloomberg reported. It supposedly explained how the phenomenon of globalization — market activity spreading from the industrialized world to developing nations — has increased wealth inequality since the late 1980s.
Academics, industry leaders and regulators saw the elephant chart as revolutionary — the answer they’d been looking for.