[net.politics] Wealth Distribution, and Correction

orb@whuxl.UUCP (SEVENER) (03/24/86)

      In answer to Clayton's inquiry:
>  From Clayton Cramer: 
> Concerning who controls wealth in this country: I've seen this claim made
> before (95% of the wealth is controlled by 5% of the people).  I suspect
> that by some rather limited measure of wealth (perhaps liquid assets), 
> this is correct -- but by a broader measure of wealth, this sounds highly
> suspect.  I recall from taking economics that about 60-70% of the national
> income is wages and salaries -- how many weeks pay would it take for us
> "wage slaves" to buy up all the stock sold on the NYSE?  Short enough that
> we could probably have a socialist revolution (if that's what anyone wanted)
> before the MasterCard bills came in.  
> 
> If you include the much less liquid, but still useful wealth of real 
> estate, you'll find that a lot of wealth in this country is pretty evenly 
> distributed.  Over half the people in this country live in a house that 
> either they or their family own -- and at least some of the rest rent 
> by choice.  I read some years ago an estimate that the total value of 
> residential housing in this country was in excess of 2x10^9 dollars.
> If half of that is owner-occupied, that means 60% of the population owns
> a trillion dollars worth of real estate.  Suddenly it doesn't sound so
> inequitable.
> 

Here are the facts from Thomas Edsall's, "The New Politics of Inequality":
(p. 222), his source, Statistical Abstract of the US:

               TOTAL    Top 1%   Top 0.5%  Percent Top 1%  Percent Top 0.5%
               -----   -------  --------- --------------   ----------------
Total wealth $4,344    $1,047    $822        24.1%            18.9%
 
Real Estate   1,493       225     151        15.1             10.1
Corp Stock      871       491     429        56.5             49.3
Bonds           158        95      83        60.0             52.2
Cash & Savings  749       101      64        13.5              8.5
Mortgages        78        41      30        52.7             39.1
Life Insurance  143        10       6         7.0              4.3
Trusts           99        89      81        90.0             81.0
Miscellaneous   854        83      60         9.8              6.8

Also I would like to correct my statement that a majority of
children were in poverty.  That statement is wrong.   I was confusing
this with the statement that out of those in poverty a majority are
children.  In fact about a quarter of the nation's children are
in poverty.  That amount represents about 40% of all those in
poverty.  No doubt my detractors will clamor at this admission
of a rather stupid confusion on my part.
My only defense is that I am willing to admit when I have made
a factual error.
 
            tim sevener   whuxn!orb