Wealth and Inequality in the United States

WHO'S GOT THE BIG BUCKS IN AMERICA Let's assume this: The USA has a population of 100 people. Below you will see the wealth distribution of US citizens. 1 Person has 35.6% of the money EB 4 People have 27.9% of the money 15 People have 23.7% of the money TOTTTOT TTTTTTI 80 People have 12.8% of the money TTTTIT THIS MEANS THAT THE 3 TIMES A GREATER INCOME THAN THE BOTTOM 80%. TOP 1% OF THE USA HAVE A SO FOR THE LAST 30 YEARS OR SO... 60% The RICH are getting 50% RICHER&RICHER 40% 30% The POOR are getting POORER & POORER 20% 10% 1979 1984 1995 The top 20% The bottom 80% The greater this gap gets, the more unstable the economy becomes. In 1928, just a year before US economy froze in depression the top 0.01% of the population had a 892 times greater income. Meanwhile the taxes for the top 1% of people were getting lower and lower. The taxes for the richest people are now 3 times lower than they were back in 1960. But because of the higher tax rates, tax payers who earned more than $1 million had to give away 65% of their income. Thus helped close the gap and stabalize the situation. Not for long, though. The gap started growing again after the late 70's. 75% 25% So in 2006 the top 0.01 % reached even higher ratio - they averaged 976 times more income than the bottom 90%. Tax rate for the top o.1% of USA population in 1960 of USA population in 2010 Tax rate for the top o.1% THE GAP JUST KEPT ON GROWING TODAY, the USA has the 3rd biggest gap between rich and po01 Right after Mexico & Turkey among the developed countries. BUT THE LAST 2 DECADES WERE GREAT FOR SOME, OF COURSE Out of balance CEO's Pay 350% S&P 500 298% 300% A Harvard business professor and a behavioral Corporate profits Production workers' pay Federal minimum wage 250% economist recently asked more than 5,000 USA citizens how they thought wealth is distributed in 200% the United States. 150% 141% 100% 107% Most thought that it's more balanced than it 50% actually is. When asked to choose their ideal 4% distribution of wealth, 92% picked one that was even more equitable. -9% HOW TO FIGHT IT ? 15 Around the world developed countries are fighting inequality by using mainly one of these weapons: 10 I TAXES I TRANSFERS .05 The Graph you see on the left shows the reduction of inequiality in these countries in the period 2000 - 2005 year. Reduction in GINI coefficient HOW DO THE STATES STACK UP? GINI coefficient 41 41-43 43-45 45-47 47-49 1987 6661