Monday, March 14, 2011

GINI Index Can Predict Social Unrest

May you live in interesting times.

Ever heard of the GINI index? Basically, it measures just how the poor are and how rich the rich are in relation to each other in any given country (full definition included on the link).

If you have allowed for differences in outcomes and ability, and your country still has an unusual disparity in wealth, that is a sign something isn't working.

Because you want to be careful investing in, exporting or importing to/from, or starting a business in a country that is about to go up in revolution.

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