America: The Land of Opportunity
This weeks Economist did a survey on America. I thought the most interesting article was on the decrease in economic mobility. Here are some stats from the article.
1. 80% of American think the poor can become rich by working hard (which is an increase since the 80's)
2. If you are in the bottom 5% income bracket, your chances of one day having an average income is 1 in 6.
3. From 1945 - 1970 the poorest fifth of society increased as much as the top fifth (actually all fifths increased in, more or less, equal amounts). Since 1979, the rich have done much better. For instance, the median income has increased by 18% while the top 1% increased by 200%
4. There was also an interesting trend with the top .1%. In Britain, France and the US the top .1% got about 10% of all income in 1913. In all countries, this continued to drop, getting to a low of 2% of total income in the 60's. Since the 80's though, the US's top .1% has started to increase. Presently, the top .1% gets 6% of total income in the US. It is between 2 and 3 % in Britain and France
5. As society is getting more information based, a college degree is getting even more important. Between 1979 and 1997, the income gap between college graduates and non-graduates doubled.
6. A student from the top 25% income bracket is 6 times more likely than a student from the bottom 25% to get a Bachelor's degree.
7. The richest 25% make up 50% of elite colleges (up from 39% in 1976).
8. The median income of Harvard families is $150,000
What scares me, is that the effects from the Bush tax cuts have only just begun to be felt. I assume these discrepancies between the poor and rich are only getting larger.
1. 80% of American think the poor can become rich by working hard (which is an increase since the 80's)
2. If you are in the bottom 5% income bracket, your chances of one day having an average income is 1 in 6.
3. From 1945 - 1970 the poorest fifth of society increased as much as the top fifth (actually all fifths increased in, more or less, equal amounts). Since 1979, the rich have done much better. For instance, the median income has increased by 18% while the top 1% increased by 200%
4. There was also an interesting trend with the top .1%. In Britain, France and the US the top .1% got about 10% of all income in 1913. In all countries, this continued to drop, getting to a low of 2% of total income in the 60's. Since the 80's though, the US's top .1% has started to increase. Presently, the top .1% gets 6% of total income in the US. It is between 2 and 3 % in Britain and France
5. As society is getting more information based, a college degree is getting even more important. Between 1979 and 1997, the income gap between college graduates and non-graduates doubled.
6. A student from the top 25% income bracket is 6 times more likely than a student from the bottom 25% to get a Bachelor's degree.
7. The richest 25% make up 50% of elite colleges (up from 39% in 1976).
8. The median income of Harvard families is $150,000
What scares me, is that the effects from the Bush tax cuts have only just begun to be felt. I assume these discrepancies between the poor and rich are only getting larger.
posted by chuckdaddy2000 at 9:54 am
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