[net.politics.theory] Wealth Distribution

eder@ssc-vax.UUCP (Dani Eder) (03/27/85)

[26 March 1985]

     Some data on wealth distribution in the US:

     This year, the United States is worth approximately 13.75 trillion $.
Of this, 10.5 trillion $ is personal wealth, the balance being publically
held.  The personal wealth is made up of the following:
(in trillion $)
     Real Estate	4.5
     Stock		2.6
     Bonds		0.5
     Cash/savings	2.2
     Debt instruments   0.2
     Life Insurance     0.4
     Miscellaneous      2.5
     Debts             -2.4 
     ----------------------
     Total		10.5

     The average household net worth is $131,250.  It is distributed
as follows:

     Top 1/2 percent     $5,250,000/household
     Next 1/2 percent     1,440,000/household
     next 5 percent         682,000/household
     bottom 94%              67,000/household

     Another way of looking at this distribution is to divide personal
wealth in the US into eight equal parts by household net worth.  The
poorest household in each group is as follows:

     Eighth    Minimum net worth
	1	6,000,000
	2	2,500,000
	3	1,000,000
	4	  400,000
	5	  160,000
	6	   80,000
	7	   40,000
	8	negative

     In reading this table, you can say, for example, that 3/8 of
the personal wealth is owned by millionaires.

    The preceding is from several sources, including the Statistical
Abstract of the US, Income,Expenditures and Wealth Chapter.

    Who are the rich?  From the October 1, 1984 issue of Forbes 
magazine, I compiled the following table of the rich in America.
Note that most large fortunes nowadays are in the hands of a family,
rather than an individual

Family	     Net Worth (million$)
-------      ----------
DuPont         10,000
Hunt		6,425
Getty		4,100
Rockefeller	3,900
Walton		2,300
Cullen		2,000
Packard		1,800
MacMillan	1,700
Koch		1,500
Mars		1,500
Newhouse	1,500
Pritzker	1,500
Perot		1,400
Hearst		1,300
Phipps		1,200
Wang		1,200
Lykes		1,100
Tisch		1,100
Mellon		1,083

Group		Net Worth(M$)		Total for Group
--------	--------		----------------
Top 19		>1,000			46.6 billion$
Next 40		525-1,000		26.6 billion$
Next 75		320-500			31.3 billion$
Next 284	150-300			58.8 billion$

Top 418		>150			163.3 billion$ (1.5% of all
					 personal wealth
Next 9600	>16			300 billion



     Me, you ask?  My family has more net worth than 60% of American
families (+30,000$).  Three and one-half years ago, I had a net
worth of -10,000$, fresh out of school.  I have strived to live
on 30% less than I earn.  Now that I am married, it is still
possible to do that with two wage earners.  One wage earner alone
if married would have a hard time keeping that up.  If, however,
one wanted to earn enough from savings to retire, at a 30% savings
rate and an assumed 8% real after-tax return, you would go like
this:(earnings from savings as % of earnings from wages)
     5 years:  14% 
    10 years:  35%
    15 years:  65%
    19 years:  99%
     You could quit  after 20 years.  Your net worth would be
12.5 times wages.  You and your posterity could be comfortable
in theory forever.

Doesn't seem so hard, now does it?  I've got about 17 years to go.

Dani Eder/ Boeing/ssc-vax!eder

gjk@talcott.UUCP (Greg Kuperberg) (04/01/85)

> [26 March 1985]
> 
>      Some data on wealth distribution in the US:
...
>      The average household net worth is $131,250.  It is distributed
> as follows:
> 
>      Top 1/2 percent     $5,250,000/household
>      Next 1/2 percent     1,440,000/household
>      next 5 percent         682,000/household
>      bottom 94%              67,000/household
...
>     Who are the rich?  From the October 1, 1984 issue of Forbes 
> magazine, I compiled the following table of the rich in America.
...
> Dani Eder/ Boeing/ssc-vax!eder

Note that many of the famous actors and actresses spend all of their
income, and are therefore somewhere in the bottom 94%.  On the other hand,
many farmers own their million-dollar farms and therefore in the top 1%.
Now, who do you think is wealthier in real terms, the farmers or the
celebrities?

In short, there is one piece of property that is never included in these
figures, because it cannot be sold and therefore is not assigned a value.
However, this property, which all of us own, yields much higher profits
on average than real estate or stocks.  This property is ourselves, our own
resources.  If we were to include this in our statistics, we would find
that wealth in this country is much more evenly distributed.
-- 
			Greg Kuperberg
		     harvard!talcott!gjk

"No Marxist can deny that the interests of socialism are higher than the
interests of the right of nations to self-determination." -Lenin, 1918

vassos@utcsri.UUCP (Vassos Hadzilacos) (04/04/85)

> 			Greg Kuperberg
> 		     harvard!talcott!gjk
> 
> "No Marxist can deny that the interests of socialism are higher than the
> interests of the right of nations to self-determination." -Lenin, 1918

A reference, please? Like, where did Lenin say this?