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UGCCFE102  MACRO  ECONOMICS  
Assignment  3  
Paper  by  Cézanne  Kooter  

The  Netherlands  1970  -­‐  2016  
Income pattern
As seen from the chart, the Netherlands underwent a few depressions in
growth of income throughout the timeframe of 1970 till 2016
...
In 1984, income started to slowly increase
...
However, in
1991, the numbers took an enormous downturn to a number even below 0 (2,3)
...
In 93' it
decreased again to an even lower percentage (-2,4 - Lowest in history 1970 2016)
...
Since the descending of 2002, the income was at
its all time low
...
This is all a matter of time, whether to see how it continues to
develop
...
From 1970 to 1971 there was a big
decrease of more than 4%
...
but
between end 78' till end 89' consumptions went to even a negative growth of a
maximum point of -2,4
...
This
however lasted only 2 years because in 1992 it took another downturn, which
only lasted 1 year before growth of consumption started to increase, this time
with high numbers to a growth of 5,9% in 1999
...

However, from 2014 till 2016, there is an increasing growth
...
 Income  
To analyze the income and wealth distribution, the difference between wealth
and income has to be well understood
...
It is the accumulation of your assets, both physical and
financial investments
...

Someone's wealth might contain a house, shares and bonds, cash in the
bank, and other assets such as cars, etcetera
...
The difference is
that even though someone might have a high income, it is not confirmed that
he is wealthy
...
However, if he decides to live low key, and saves some of his
money, he will be considered wealthy, after the accumulated amount of
money he saved
...


Income  
distribution    
It

has

difficult
exact
the

been
to

very

find

information
distribution

income

of

the
of
of
the

Netherlands from 1970
till 2016
...
In this graph is shown the income inequality between the 10%
highest and 10% lowest income by using the GINI-coefficient
...


Wealth  distribution    
The graph below shows the wealth distribution in The Netherlands, without
including the pensions
...
Therefor I have chosen a graph that has been drawn with the
information between 2006 and 2012
...


Comparing it to earlier
years such as 2008,
there

is

increase

a
in

viewable
wealth

distribution
...

When you put the income and consumption pattern together, (see
image below), you can see that there is a strong complementary effect

between the 2
...
It does not go with equal numbers or equal time frames, this due to the
fact that consumers do not change their consumption from one day to the
other
...

As seen in the graph showed in the paragraph of income distribution,
the inequality in the Netherlands has been increasing
...
Out of this we can
conclude that the gap between rich and poor is growing
...
The top 5% has been not only earning more, but has been
obtaining more of the wealth in the Netherlands
...


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2nd  of  March,  2016  

UGCCFE102  MACRO  ECONOMICS  
Assignment  3  
Paper  by  Cézanne  Kooter  

The  Netherlands  1970  -­‐  2016  
Bibliography  
Macro Economische Verkenning (MEV) 2016
...

Retrieved February 29, 2016, from http://www
...
nl/publicatie/macroeconomische-verkenning-mev-2016
Bijlage 5 Consumptie, Inkomen van huishoudens en Investeringen 1970-2016

Pettinger, T
...
Economics Essays: Difference Between
Wealth, Income and Assets
...
economicshelp
...
html

Boonen, A
...
ISt rapport PI Arnhem_22645
...
rijksoverheid
...
(2011)
...
Retrieved March 2, 2016, from
http://www
...
nl/nr/rdonlyres/5d87ff45-3ebe-488a-ac9811ae08902fe1/0/2014welvaartinnederlandpub
...
(2016)
...
Retrieved March 2,
2016, from http://media
...
nl/legacy/1-inkomens-envermogensverdeling
...
(2007)
...
Retrieved March 2,
2016, from http://piketty
...
ens
...
(2014)
...
Retrieved March 02, 2016, from http://www
...
nl/geld/rijk-en-armwaarom-nederland-niet-helemaal-in-pikettys-plaatje-past-511704

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2nd  of  March,  2016  



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