Wealth Distribution in the United States

Perception vs. Reality

A Harvard professor asked over 5,000 Americans about their perception of wealth distribution.
- Participants guessed the wealth distribution among five groups: top, bottom, and three middle 20% groups.
- Most thought the distribution was more equitable than it is.
- 92% believed the ideal distribution should be more equal.
The disparity between perceived and actual wealth distribution is immense.

The bottom 40% of Americans hold negligible wealth.
- Difficult to represent on a chart.
The top 1% holds more wealth than 90% of respondents thought the entire top 20% should have.

Imagining the US population as 100 individuals.
- From various professions, lined up by net worth.
- US total wealth ($54 trillion in 2009) represented as a pile of cash.
Socialism: Equal distribution of wealth (not practical).
Ideal Distribution (per survey):
- Wealthiest are 10-20 times better off than the poorest.
- A healthy middle class with a smooth transition to wealth.
- Supported by 92% of respondents.
Perceived Distribution:
- Poorer groups suffer more compared to the ideal.
- Wealthy make 100 times more than the poorest.

Poorest Americans barely register on the wealth chart.
Middle class is not much better off than the poor.
- Even the rich (top 10-20%) are worse off than perceived.
Only the top 10% are significantly better off.
- Top 2-5% wealth is off the charts.
- The top 1% has a vast majority of wealth.

Top 1%:
- Hold 40% of the nation's wealth.
- Have most stocks, bonds, and mutual funds.
Bottom 80%:
- Hold only 7% of the nation's wealth.
- Little investment, mostly scraping by.
Income share for the top 1% has tripled since 1976.

CEOs earn significantly more than average workers.
- A CEO earns in an hour what an average worker earns in a month.
The country doesn't need extreme measures to achieve fairness.
Need awareness about the reality of wealth distribution.