Distribution of Wealth in America
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New Think Tank.com Distribution of Wealth in America Analysis of Wealth Distribution in America Based off of IRS and Federal Reserve Board Data
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Transcript of Distribution of Wealth in America
New Think Tank.com
Distribution of Wealth in AmericaAnalysis of Wealth Distribution in America Based off of IRS and
Federal Reserve Board Data
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
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%
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
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
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
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%
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
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
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)
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)
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)
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)
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
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
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
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%
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
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
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
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
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
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
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
