REALLY!? The Dutch Economy is the Most Unequal? - a Response to Economics Explained

As a Dutch economist who works for a South African University, I was absolutely shocked when I saw this video from Economics Explained (EE) which states that the economy of the Netherlands is in fact the most unequal on earth!!

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△ Link to EE's video: https://youtu.be/Ot4qdCs54ZE
△ Check out my economic country studies here: https://www.youtube.com/playlist?list=PLGbVoSdwvesDNHLHmkZzvW2vuCfllJhpA

SOURCES:
I've linked my sources in the blog that goes along with this video:

https://www.moneymacro.rocks/2021-05-01-dutch-econ-response-ee/

Timestamps:
0:00​ - introduction
1:43​ - bad numbers
10:22​ - taxes reduce inequality

Attribution:
Big thanks to Minute Marty for shooting drone footage of Groningen for me. Check out his drone shots (Create Commons License) here: https://www.youtube.com/channel/UCf_-70GwlEelR1FvRa5Dppw/videos

Narrated and produced by Dr. Joeri Schasfoort (University of Cape Town & University of Groningen)
https://twitter.com/joerischasfoort
https://www.linkedin.com/in/joeri-schasfoort/

Extended description:

The economy of the Netherlands being is the most unequal is only the case when it comes to income inequality. No, when it comes to wealth inequality the Netherlands is the worst… and this is in spite of the fact that the Netherlands has a lot of progressive social welfare policies and high taxes in place to reduce wealth inequality…

But…. As EE then tells us.

“if we look at the results in doesn’t look like they will do that at all”

Wow!!! I mean, I get it, this is exactly the type of story that economists love because it is so counter-intuitive…

After all, the richest neighborhoods in my last city of residence, beautiful Cape Town, look like this… while Cape Town’s poorest neighborhoods look like this.. On the other hand, the richest neighborhoods in my current city of Groningen, the Netherlands look like this while its poorest looks like this.

But, EE finds… using data, supposedly from the World Bank, that actually the Netherlands is the most unequal country in the world, not South Africa… So, I definitely understand why this video was a massive hit on YouTube… But, why then haven’t any other sources picked up this incredible story!?

Because it is not True.

But, before I start telling you exactly why the ‘World Bank’ numbers are incorrect in this video, let me just say that this is a ‘good faith’ response, meaning that throughout it I’ll assume that EE has made some honest mistakes that led him to a conclusion that is just totally wrong.

Видео REALLY!? The Dutch Economy is the Most Unequal? - a Response to Economics Explained канала Money & Macro