INCOME AND NET WORTH GROWTH IN THE UNITED STATES
WHAT EXPLAINS IT?
THIS IS JUST STRAIGHT REALITY AND CAUSE-EFFECT
Other than a very few "bad" people in the system, the distribution of income is due to both compounding and to value delivered. It is strictly math and is not based on manipulation and unfairness. Look at it yourself and see what conclusion you would come to on a rational, fact-based basis.
PERSPECTIVE OVERALL
Total household (personal) wealth $54.2 Trillion 2009
Net worth of top 400 Americans 1.27 trillion 2009
Total income of over $250,000 2.7 trillion/yeaR
What we owe in national debt and unfunded liabilities far exceeds the total of all household wealth, and trounces the high wealth of a few people. It is preposterous to think that we could cover all the debt and deficits just from the income and wealth of the very rich - there's just too few of them, so the rest of us will get stuck with the bill!
MEAN HOUSEHOLD INCOME AND NET WORTH:
Top 1% 1,318,200 $16,439,000
Bottom 40% 17,300 -10,600 (negative)
Income increased for all quintiles, 1979 - 2007, adjusted for inflation
Lowest quintile 18%
21st to 81sr percentile 40%
Next 19 percentiles 19%
Top 1% 275%
While all had gains, the middle class had double the others, except for the top 1%, where most of the gain was from compounding of a large investment base to start from with only 19% from salaries.
THE EFFECT OF COMPOUNDING OVER TIME
NET WORTH DISTRIBUTION:
Top 1% 33.8%
Next 4% 28%
Next 5% 14%
Top 10% 75.8 (In 2000, US at 69.8%; in Western countries top 10% own from 42.3% -
71.3%)
Next 10% 12%
Bottom 80% 11% (half of which aveerage a negative worth)
Median wealth by race:
Unemployment rate
White 97.0 K
Black 4.9 K 15.8% (hitting 20-24 year olds the hardest)
Hispanic 1.3 K 12.9
INCOME PERCENTILE AND INCOME TAX
Top 20% in income pays 64.3% of all taxes paid
Bottom 20% pays 1.9%, but no income taxes.
AVERAGE INCOME BY EDUCATION
Unemployment rate
Median $43,376
High school drop out 23,013 12.4%
High school graduate 37,620 8.3
Bachelor's 72,376 4.5
Master's 104,368 3.5
UNEMPLOYMENT DISTRIBUTION, 2013, age & race:
Adult 7.3%
Teenagers 23.4
White 7.0%
Black 13.8%
Hispanics 9.7%
Asians 6.5
Median income increased 1991-2003 10%, with bachelor's and master's not increasing quite as much.
Income and wealth correlate most strongly with education and race, but education and race also are correlated.
AGE, WEALTH, AND INCOME
45-54 $61,111
35-44 56,785
Of course, income and wealth rise significantly in later years, due to compounding and normal rise in skills and experience. Median wealth, 2010, age 65-74 was 22 times that of the under 35 age group and 5 times that of the 35-44 year old age group. (Basic compounding and increase in wages over time, of course. Source.)
ISSUES THAT MUST BE ADDRESSED
Any able bodied person in the U.S. needs to contribute or the burdens on all the others will be too high.
Although this is not a subject people want to address, the education and the beliefs passed on toward creating more productivity in the black and hispanic races must be dealt with. Education makes a huge difference - and we need to get greater participation and greater training so that young adults (and anyone who needs it) will be more capable of producing income to meet theirs and their families' needs. There is no doubt. And the payoff for whatever we can do that will have some effect will be worth the cost.
A respect for earning money and being a responsible citizen are all part of what needs to be done.
The longer we keep kicking the can down the road, the greater and greater the harm. We can't afford to let another generation be neglected and hurt.
