80 percent of the households in America make 50.6 percent of all the income in America.
The richest 20 percent of the households, on the other hand, make 49.4% of the income.
so the folks that fall between 21 & 80% make 1.2% of the income in this country?
I'm pretty sure the author means that 1/4th of that 80% make 49.4 of the money that is 50.6% of the national income, but it could use a little clarity on that point.
No, you've got the wrong 80%. He's talking about the bottom 80%.
The bottom 80% of households earn 50.6% of all income. The top 20% of households therefore get the other 49.4%. This gap is recent, according to the article - the differentials were smaller in the 50's and 60's.
The bottom 80% of households earn 50.6% of all income. The top 20% of households therefore get the other 49.4%.
But note that which households constitute the "top 20%" and the "bottom 80%" are defined by their income, not their wealth. So for all we know, there could be poor people in the top 20% and rich people in the bottom 80%. (in fact, the latter is definitely true; any retired multi-millionaire who has a bad year in the stock market could have net earnings of zero or less, putting him in the bottom
There's some truth to your first statement, although it's limited - it doesn't distort the essential point of the observation.
If you look at the demographics, however, wealthier households are likely to have fewer, not more people in them. If you go per capita, the results are more skewed, not less.
Unix is the worst operating system; except for all others.
-- Berry Kercheval
and lets pick out an obvious fallicy right now (Score:0, Troll)
80 percent of the households in America make 50.6 percent of all the income in America.
The richest 20 percent of the households, on the other hand, make 49.4% of the income.
so the folks that fall between 21 & 80% make 1.2% of the income in this country?
I'm pretty sure the author means that 1/4th of that 80% make 49.4 of the money that is 50.6% of the national income, but it could use a little clarity on that point.
Re:and lets pick out an obvious fallicy right now (Score:5, Informative)
The bottom 80% of households earn 50.6% of all income. The top 20% of households therefore get the other 49.4%. This gap is recent, according to the article - the differentials were smaller in the 50's and 60's.
Re:and lets pick out an obvious fallicy right now (Score:2)
But note that which households constitute the "top 20%" and the "bottom 80%" are defined by their income, not their wealth. So for all we know, there could be poor people in the top 20% and rich people in the bottom 80%. (in fact, the latter is definitely true; any retired multi-millionaire who has a bad year in the stock market could have net earnings of zero or less, putting him in the bottom
Re:and lets pick out an obvious fallicy right now (Score:2)
If you look at the demographics, however, wealthier households are likely to have fewer, not more people in them. If you go per capita, the results are more skewed, not less.