Distribution of Wealth in America
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Transcript of Distribution of Wealth in America
![Page 1: Distribution of Wealth in America](https://reader036.fdocuments.us/reader036/viewer/2022081413/5476c6cfb4af9ff1418b4575/html5/thumbnails/1.jpg)
New Think Tank.com
Distribution of Wealth in AmericaAnalysis of Wealth Distribution in America Based off of IRS and
Federal Reserve Board Data
![Page 2: Distribution of Wealth in America](https://reader036.fdocuments.us/reader036/viewer/2022081413/5476c6cfb4af9ff1418b4575/html5/thumbnails/2.jpg)
Sources
Federal Reserve Boards Survey of Consumer Finances
IRS Tax Stats
My goal is to get you to look at the facts and come to your own conclusions
I did my best to turn thousands of documents into easy to follow pie charts and graphs
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One Pie Chart that Says it All
70%
13%
8%
4%3%
2%
Avg Net Worth Bottom 20%Avg Net Worth Next 20-40%Avg Net Worth Next 40-60%Avg Net Worth Next 60-80%Avg Net Worth Next 80-90%Avg Net Worth Top 10%
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Average Net Worth in 2007
Avg Net Worth Bottom 25%: $4,600
Avg Net Worth Next 25 – 50%: $21,700
Avg Net Worth Next 50 – 75%: $78,900
Avg Net Worth Next 75 – 90%: $242,800
Avg Net Worth Top 10%: $1,606,600
Total Net Worth of the Top 400 (Forbes 2011): $1,707,250,000,000
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Increase of Net Worth of Americans (1989 – 2007)
0
250000
500000
750000
1000000
1250000
1500000
1750000
2000000
1989 1992 1995 1998 2001 2004 2007
Increase of Net Worth of Citizens Over the Years
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Increase of Net Worth of Americans (1989 – 2007)
Year Bottom 25% 25 - 50% 50 - 75% 75 - 90% Top 10%
1989 $2,500 $14,000 $41,500 $128,300 $710,500
1992 $2,500 $12,900 $43,100 $119,700 $680,100
1995 $3,700 $16,200 $46,000 $134,400 $875,300
1998 $4,200 $18,900 $65,700 $195,000 $1,202,100
2001 $3,700 $20,500 $78,600 $253,200 $1,599,300
2004 $3,300 $18,900 $69,900 $244,700 $1,486,900
2007 $4,600 $21,700 $78,900 $242,800 $1,606,600
![Page 7: Distribution of Wealth in America](https://reader036.fdocuments.us/reader036/viewer/2022081413/5476c6cfb4af9ff1418b4575/html5/thumbnails/7.jpg)
Increase of Net Worth of Americans (1989 – 2007)
Bottom 25% : 45.6%
Next 25 - 50% : 35.5%
Next 50 – 75% : 47.4%
Next 75 – 90% : 47.2%
Top 10% : 55.8%
![Page 8: Distribution of Wealth in America](https://reader036.fdocuments.us/reader036/viewer/2022081413/5476c6cfb4af9ff1418b4575/html5/thumbnails/8.jpg)
Distribution of US Total Net Worth over the Years
0
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
1,750,000
2,000,000
1989 1992 1995 1998 2001 2004 2007
Distribution of US Total Net Worth over the Years
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Change In Income Distribution Didn’t Cause this
39%
24%
17%
12%8%
Income Distribution US Citizens 1947
43%
24%
16%
11%6%
Income Distribution US Citizens 2007
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The Amount Income Groups are Expected to Pay in Federal Taxes
0
20
40
60
80
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Historical Tax Rates for Different Income Groups (1960 - 2005)
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Nobody Pays What is Expected
0.100
0.110
0.120
0.130
0.140
2001 2002 2003 2004 2005 2006 2007 2008
Federal Taxation on the Top .1% (.35)
0
0.100
0.200
0.300
0.400
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007
Federal Taxation on the Top 1% (.35)
0
0.068
0.135
0.203
0.270
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007
Federal Taxation on the Top 5% (.35)
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Nobody Pays What is Expected
0
0.045
0.090
0.135
0.180
1980 1984 1988 1992 1996 2000 2004 2008
Federal Taxation on the Top 5 - 10% (.30)
0
0.040
0.080
0.120
0.160
1980 1984 1988 1992 1996 2000 2004 2008
Federal Taxation on the Top 10 - 25% (.30)
0
0.033
0.065
0.098
0.130
1980 1984 1988 1992 1996 2000 2004 2008
Federal Taxation on the Top 25 - 50% (.25)
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Nobody Pays What is Expected
0
0.018
0.035
0.053
0.070
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Federal Taxation on the Bottom 50% (12.5)
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Net Worth Based on Numerous Factors
14%
86%
Net Worth White vs. Non-White
Net Worth of WhitesNet Worth Non-Whites
29%
22% 20%
29%
Net Worth Distribution Across US
Net Worth West Net Worth MidwestNet Worth South Net Worth Northeast
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Net Worth Based on Numerous Factors
1%25%
60%
14%
Net Worth Based on Job Category
Net Worth EmployeeNet Worth Self-EmployedNet Worth RetiredOther
23%
9%
15%
53%
Net Worth Based on Job Type
Net Worth ManagementNet Worth Tech/Sales/ServiceOtherRetired
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Net Worth Based on Numerous Factors
8%
92%
Net Worth Homeowners vs. Renters
Net Worth HomeownerNet Worth Renter
56%21%
14%
9%
Net Worth Based on Education Level
No High School High SchoolSome College College Degree
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How the Housing Collapse Effected Net Worth
0
2.6
5.2
7.8
10.4
13.0
15.6
18.2
20.8
23.4
26.0
1999 2001 2003 2005 2007 2009
Home Equity as % of Household Net Worth
$757,400
$380,600
$270,800
$193,900
$155,500$138,400
Average Value of Home Based on Net Worth
Bottom 20% 20 - 40% 40 - 60%60 - 80% 80 - 90% Top 10%
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Investments Based on Net Worth
$205,000
$90,400
$48,000
$24,000
$12,000
$6,000Avg Value of Retirement Accts Based on Net Worth
$33,800
$25,400$20,400
$14,600
$9,100
$5,600
Avg Value of Car Based on Net Worth
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Investments Based on Net Worth
$250,000$81,000
$19,000$19,500
$45,500
$10,000
Avg Value of Bonds Based on Net Worth
$219,600$62,000
$34,200
$17,700
$8,400$6,500
Avg Value of Stocks Based on Net Worth
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Investments Based on Net Worth
$799,800
$360,100
$246,300
$139,000
$77,200
$40,000Avg Value NonFinancial Assets Based on Net Worth
$158,000
$80,000
$50,000
$13,800
$8,800Avg of Other Assets Based on Net Worth
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Net Worth and Income
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1989 1992 1995 1998 2001 2004 2007
Average Income Increases of US Households Based on Net Worth
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Total Debt Based on Net Worth
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1989 1992 1995 1998 2001 2004 2007
Average Amount of Total Debt Based on Net Worth
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Total Credit Card Debt Based on Net Worth
0
1875
3750
5625
7500
9375
11250
13125
15000
1989 1992 1995 1998 2001 2004 2007
Average Amount Owed on Credit Cards Based on Net Worth
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Home Equity Loan Debt Based on Net Worth
0
37,500
75,000
112,500
150,000
187,500
225,000
262,500
300,000
1989 1992 1995 1998 2001 2004 2007
Avg Owed On Home Equity Loans of Households Based on Net Worth