GAR 2015 Main Report

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professionals will not be able to accumulate wealth in the same way as those with financial capital (Piketty, 2014

Piketty, Thomas. 2014,Capital in the Twenty-First Century, First Edition edition. Belknap Press.. .

At the household level, the middle class will continue to hold the majority of their assets in the form of property (houses) and labour (investments in education and skills). This increases their relative exposure and vulnerability to hazards disproportionately compared to those whose wealth depends on financial capital. As a result, growing income inequality will manifest itself as growing disaster risk inequality.

For example, the home of a typical middle-class family in the United States of America represents more than 50 per cent of the total value of the family’s assets (Trawinski, 2013

Trawinski, L. 2013,Assets and debt across generations: the middle-class balance sheet 1989-2010, Washington, DC: AARP Public Policy Institute.. .

). In the absence of insurance, damage to or loss of this asset in a disaster could halve the family’s wealth and constrain its ability to accumulate assets in the

future, as its members would be forced to spend their savings on alternative accommodation. The percentage of homeowners with flood insurance in Louisiana at the time of Hurricane Katrina was as low as 7.3 per cent in some of the most severely affected counties (Kunreuther and Pauly, 2006

Kunreuther, H. and Pauly, M. 2006,Rules rather than discretion: Lessons from Hurricane Katrina, Journal of Risk and Uncertainty, Vol. 33, Issue 1-2: 101-116.. .

Figure 9.10 Minimum wealth of top 50%, 10% and 1% of global wealth holders (base year 2008 = 100)

(Source: Credit Suisse, 2014

Credit Suisse. 2014,Global Wealth Report 2014, October 2014. Zurich: Credit Suisse Research Institute.. .

(Source: Piketty, 2014

Piketty, Thomas. 2014,Capital in the Twenty-First Century, First Edition edition. Belknap Press.. .

.12)

Figure 9.11 Economic growth vs income from capital

	197 professionals will not be able to accumulate wealth in the same way as those with financial capital (Piketty, 2014 x Piketty, Thomas. 2014,Capital in the Twenty-First Century, First Edition edition. Belknap Press.. . ). At the household level, the middle class will continue to hold the majority of their assets in the form of property (houses) and labour (investments in education and skills). This increases their relative exposure and vulnerability to hazards disproportionately compared to those whose wealth depends on financial capital. As a result, growing income inequality will manifest itself as growing disaster risk inequality. For example, the home of a typical middle-class family in the United States of America represents more than 50 per cent of the total value of the family’s assets (Trawinski, 2013 x Trawinski, L. 2013,Assets and debt across generations: the middle-class balance sheet 1989-2010, Washington, DC: AARP Public Policy Institute.. . ). In the absence of insurance, damage to or loss of this asset in a disaster could halve the family’s wealth and constrain its ability to accumulate assets in the future, as its members would be forced to spend their savings on alternative accommodation. The percentage of homeowners with flood insurance in Louisiana at the time of Hurricane Katrina was as low as 7.3 per cent in some of the most severely affected counties (Kunreuther and Pauly, 2006 x Kunreuther, H. and Pauly, M. 2006,Rules rather than discretion: Lessons from Hurricane Katrina, Journal of Risk and Uncertainty, Vol. 33, Issue 1-2: 101-116.. . ). Figure 9.10 Minimum wealth of top 50%, 10% and 1% of global wealth holders (base year 2008 = 100) (Source: Credit Suisse, 2014 x Credit Suisse. 2014,Global Wealth Report 2014, October 2014. Zurich: Credit Suisse Research Institute.. . .) (Source: Piketty, 2014 x Piketty, Thomas. 2014,Capital in the Twenty-First Century, First Edition edition. Belknap Press.. . .12) Figure 9.11 Economic growth vs income from capital	Page 1 Page 10 Page 20 Page 30 Page 40 Page 50 Page 60 Page 70 Page 80 Page 90 Page 100 Page 110 Page 120 Page 130 Page 140 Page 150 Page 160 Page 170 Page 180 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 ->Page 199 Page 200 Page 201 Page 202 Page 203 Page 204 Page 205 Page 206 Page 207 Page 208 Page 209 Page 210 Page 211 Page 220 Page 230 Page 240 Page 250 Page 260 Page 270 Page 280 Page 290 Page 300 Page 310