How Much Does Inequality Cost You?
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Recent OECD data reveals that the United States has the most unequal wealth distribution among developed nations, with the top 1% holding wealth that is 172 times greater than that of the bottom 60%. While average U.S. household net worth appears high, the median wealth indicates many would benefit significantly from a more equitable distribution. If U.S. wealth inequality matched that of Belgium, the typical household would have more than triple its current net worth.
How Much Does Inequality Cost You?
- 1. $56,724 $188,149 $86,642 $0 $200,000 $400,000 If you live in the United States, inequality costs you plenty. Newly released data from the OECD, the official economic research agency of the world’s developed nations, helps us see just how much. Originally published in the June issue of Too Much, the Institute for Policy Studies newsletter on excess and inequality. Subscribe at www.toomuchonline.org. No developed world nation, the OECD shows, has anywhere near as unequal a distribution of wealth as the United States. But averages can be deceiving. You can drown, as statheads like to quip, in a lake that averages 18 inches deep. How Much Does Inequality Cost You? $644,850 $411,044 $313,517 $112,608 21 61 20 29 21 33 61 12 23 40 58 31 40 10 23 29 40 80 120 160 200 Top 1% household net worth as a multiple of bottom 60% net worth Top 1% households in the USA average 172 times the wealth of households in the bottom 60% But at first glance that inequality doesn’t seem to hurt average Americans. U.S. average household net worth tops almost all other OECD nations. Average household wealth, by OECD nation 82 inches deep depth Lake Inequality Don’t go here if you can’t swim! A median represents that point in a distribution of numbers where half fall above and half below. Wealth of the median — most typical — household, by OECD nation If the United States had as equala distribution of wealth as Belgium, the typical U.S. household would have over tripleits current net worth. cccSources: OECD, In It Together: Why Less Inequality Benefits All, May 21, 2015. Icons from the Noun Project: Ryan Oksenhorn, Saman Bernel-Benrud, Tuk Tuk Design To measure the economic well-being of typical households, medians do a much better job than averages. 10 inches deep Average lake depth: 18 inches