The Data on Wealth Distribution in the US

Talking about wealth distribution can lead to contentious discussions.

The fact that one group has "more" of something literally means it is not equal to what someone else has ... but does it imply that it isn't fair or just? The arguments get nuanced fast.

Even how you look at the statistics can be confusing.  You can focus on which group has what percentage of the pie.  Or you could focus on which groups are gaining or losing based on the share they used to have of the pie.  With that said, remember that the pie can grow or shrink, and the percentage of a population in a demographic can change as well. What you choose to focus on, and what you decide it means, impacts your stance on the meritocracy or unfairness of what is happening (and what we should do about what is happening). 

So, while many people point to the increasing wealth of the 1%, it's worth discussing whether this represents inequality or simply the asymmetric distribution of wealth. 

 

via visualcapitalist

Today, the top 1% of the U.S. owns about 31.2% of the total wealth. That's up from 28.6% in 2010. 

However, the total wealth pool has increased from $60 trillion to $112 trillion in that same period. 

In other words, each demographic has seen an increase in wealth over the past ten years. A larger percentage of the pie has gone to the 1%, but each demographic has benefitted and our collective economic pie has grown. 

So, what drives the asymmetric distribution of wealth?

There are multiple factors, but to name just a few: 

• The longest bull market in history benefits the top 1% more because they own a much higher percentage of corporate equities and mutual funds
• The minimum wage hasn't increased since 2009, despite rising costs of living and other goods.
• Technological changes influence both more menial jobs as well as creating more opportunities for tech giants
• Globalization plays a part both due to trade channels and due to the integration of numerous financial markets

Are things better?  Are things good enough?  Do we have to do something? If so, what?

Is this a red herring to distract us from other issues? 

I'm curious to hear what you think about this issue.