The Distribution of Economic Pain From the Financial Crisis in One Chart

The same phenomena (the diminishing middle class, financial bubble as a wealth transfer mechanism, policy failure) Jesse discussed in the below post have occurred in many parts of the world including Korea.  

The middle class is the backbone of a nation.  The more wealth gets concentrated in the hands of a few, the more corruption and malinvestment/misallocation occur, undermining the economy and hindering democracy.

From Jesse's Cafe:

No wonder the wealthiest ten percent feel so clever and even triumphant.

The collapse caused by the widespread banking fraud has barely affected them, whereas it wiped out most of the last ten years of growth in the middle class and the poor.

In my considered opinion this is largely the result of policy and tax decisions that have been made by the government over the past twenty or more years, in which they fostered a financially predatory economy.

Financial bubbles are often wealth transfer mechanisms, and in this case it appears that you can also keep what you kill.

From Amir Sufi, Professor of Finance at the University of Chicago.

Net Wealth Shock in US, by Net Worth Percentile

http://jessescrossroadscafe.blogspot.kr/2012/11/the-distribution-of-economic-pain-in.html