By Scott Reyburn
- Sept. 21, 2018
LONDON — It’s one of the most celebrated graphs ever produced by economists.
The chart, first published in 2013 by Branko Milanovic and Christoph Lakner using data from the World Bank, shows global income gains from 1988 to 2008. The graph climbs sharply on the left, indicating how outcomes improved in the developing world from the fall of the Berlin Wall to the Great Recession. Further to the right, it shows how equivalent outcomes declined dramatically for the working and middle classes in the developed world, but soared for the planet’s wealthiest 1 percent. This arrestingly unequal pattern of global income distribution has become known, famously (at least to economists), as the elephant graph.
What does this have to do with the art market? Well, pretty much everything. A decade after the fall of Lehman Brothers and Damien Hirst’s era-defining “Beautiful Inside My Head Forever” auction at Sotheby’s, the art market remains one of the most glaringly visible symptoms of global income inequality.
“High-value celebrity art is completely disconnected from the everyday world,” said Stephen Bayley, a cultural commentator based in London. “It only exists for the very, very, very rich. Art is a new financial asset class, and this has altered the perspective of the more modest buyer.”
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