Wealth Inequalities in the US

• The top 10% of americas‘s population earns 45.5% of all income in the US
• The Gini Index is a common measure (income inequality between the rich and poor)
• In a fair society the Gini Coefficient would be 0, while in an unfair society (where one individual hoards every bit of that nations wealth) the Gini Coefficient would be 1
• In the US the Gini index rose by 1.2% in 2021 to 0.49% a year from 0.48%
• In other countries the Gini has been declining due to the COVID-19 pandemic
• Inequality is greater in developing countries than wealthier ones, the US is an exception
• The US Gini Coefficient is much higher than in similar economies, like Denmark
• Government’s response to wealth inequality

  Temporary Assistance for Needy Families (TANF) - a program (that’s time limited) assists families with children when parental guardian cannot provide for the families basic need.
• Large increase in executive pay - All CEOS used to be white men. Earned 20 times the amount of an average worker. The highest rate billionaires pay is 20%
• discrimination- the economic crisis has hit ethnic minorities hard. Black un at 15.4%, Latino unemployment at 14.5% and businesses owned by ethnic minorities are closing fast.
• Inflation - Prices rising very quickly. Inflation erodes the purchasing power of individuals. People struggle to pay for basic necessities.
• a stagnant minimum wage - A lot of Americans rely on their paychecks to make ends meet. Between 1979-2020 workers‘ wages grew by 17.5% while productivity grew over three times as fast at 61.8%
• wealth begetting wealth - wealth is increasingly concentrate in the hands of the few (mainly white families). Money is passed from parents to children and so the wealth gap increases.