 What is the difference between wealth & Income?  How do you measure wealth?  What are assets & debts?  What does it mean to be wealthy but little.

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Presentation transcript:

 What is the difference between wealth & Income?  How do you measure wealth?  What are assets & debts?  What does it mean to be wealthy but little income?  What does it mean to have no wealth but have a large income?  24% of the population currently have no assets or negative wealth 7.

 Lower Class?  Middle Class?  Upper Class?  In your group determine what income levels determine these classes? Get your Cell Phone Out

Average Household Income $50,502 4 in Among the Highest in the World (1) Personal Income Category (2) Percentage of All Households in this Category Under $14,999 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 and Above Distribution of U.S. Income by Households, Source: Bureau of the Census

(1) Quintile (2) Percentage of Total Income Lowest 20% Second 20% Third 20% Fourth 20% Highest 20% Total (3) Upper Income Limit $20,453 38,550 61, ,000 No Limit

The average wealth of the top 1%($16.4 million) 1 Median Net Worth $77,300 Mean Net Worth $498,

 Definition of Poverty  Single in 2012 was $11,712  Family of 4 was $23,201  Family of 6 was $32,181  46.2 Million 2011 from 43.6 Americans 2009  Poverty Rate 15% up from %  Income Record U.S Poverty Holds as Inequality Grows in the US Income Record U.S Poverty Holds as Inequality Grows in the US

Source: Bureau of the Census  Ability  Education and Training  Discrimination  Preferences and Risks  Unequal Distribution of Wealth  Market Power  Luck, Connections, and Misfortune Get Cell Phones Out

Income Inequality Over Time  Rising Income Inequality Since 1970  Causes of Growing Inequality  Greater Demand for Highly Skilled Workers  Demographic Changes  International Trade, Immigration, and Decline in Unionism

 Income distribution is a by-product of capitalism  Individual’s earnings are related to their productivity  The value income has on society encourages innovation and entrepreneurship  Innovation and entrepreneurship are positively correlated to economic growth  Redistribution of wealth increases the cost of “ I & E” which could slow economic growth  Income levels change over time  Should policy be directed towards reducing poverty?  How?

1. my/wealth-net-worth/index.html my/wealth-net-worth/index.html /tables/12s0696.pdf /tables/12s0696.pdf 6. e-lost-decade-of-the-middle-class/1/ e-lost-decade-of-the-middle-class/1/ 7. wal-mart-wealth-american/