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1. In the graph, how much of the US population is represented by each person? What does the stack on top of each person represent? 2. How much of the nation's wealth is owned by the top 1 percent? By the bottom 80 percent?

1. In the graph, how much of the US population is represented by each person? What does the stack on top of each person represent? 2. How much of the nation's wealth is owned by the top 1 percent? By the bottom 80 percent?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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1. In the graph, how much of the US population is represented by each person? What does the stack on top of each person represent? 2. How much of the nation’s wealth is owned by the top 1 percent? By the bottom 80 percent?
Transcribed Image Text:1. In the graph, how much of the US population is represented by each person? What does the stack on top of each person represent? 2. How much of the nation’s wealth is owned by the top 1 percent? By the bottom 80 percent?
**Actual Distribution of Wealth in the US** **Source:** Adapted from the video “Wealth Inequality in America,” 2012. **Note:** This document uses 2009 data. As of 2017, this inequality had only become greater. --- In this graph, the population of 300-plus million Americans is reduced to a representative group of 100 people. So, each person in this image represents 1% of the population. This group of 100 people has been lined up according to their wealth, poorest people on the left, wealthiest on the right. These 100 people have been shaded based on which 20% quintile they fall into. Then, the total wealth of the United States, which was roughly $54 trillion in 2009, was distributed among our 100 Americans. The poorest Americans don’t even register; they are down to pocket change, and the middle class is barely distinguishable from the poor. 1% of America has 40% of all the nation’s wealth, the bottom 80% only has 12% between them. The top 1% own half the country’s stocks, bonds, and mutual funds. The bottom 50% of Americans own only 0.5% of these investments. **Graph Explanation:** - The x-axis represents the percentage of the population, divided into percentile groups from 0% to 100%. - The y-axis illustrates the amount of wealth each percentile group holds, with the poorest ("THE POOR") on the left and the richest ("THE RICH") on the right. - The graph demonstrates a sharp rise on the right side, indicating how the top 1% controls a significant portion of the wealth, whereas there is very little wealth among the middle class and poorest sections.
Transcribed Image Text:**Actual Distribution of Wealth in the US** **Source:** Adapted from the video “Wealth Inequality in America,” 2012. **Note:** This document uses 2009 data. As of 2017, this inequality had only become greater. --- In this graph, the population of 300-plus million Americans is reduced to a representative group of 100 people. So, each person in this image represents 1% of the population. This group of 100 people has been lined up according to their wealth, poorest people on the left, wealthiest on the right. These 100 people have been shaded based on which 20% quintile they fall into. Then, the total wealth of the United States, which was roughly $54 trillion in 2009, was distributed among our 100 Americans. The poorest Americans don’t even register; they are down to pocket change, and the middle class is barely distinguishable from the poor. 1% of America has 40% of all the nation’s wealth, the bottom 80% only has 12% between them. The top 1% own half the country’s stocks, bonds, and mutual funds. The bottom 50% of Americans own only 0.5% of these investments. **Graph Explanation:** - The x-axis represents the percentage of the population, divided into percentile groups from 0% to 100%. - The y-axis illustrates the amount of wealth each percentile group holds, with the poorest ("THE POOR") on the left and the richest ("THE RICH") on the right. - The graph demonstrates a sharp rise on the right side, indicating how the top 1% controls a significant portion of the wealth, whereas there is very little wealth among the middle class and poorest sections.
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