Monday, April 22, 2019

Wealth Distribution: What People Think vs What It Is

Monday, April 22, 2019




The graph shows what Americans thought the distribution of wealth in America was and what they thought would be ideal. The data is based on a 2011 survey, which was published here: http://www.people.hbs.edu/mnorton/norton%20ariely%20in%20press.pdf .

The actual United States wealth distribution was plotted against the estimated and ideal distributions across all respondents. Because of their small percentage share of total wealth, both the ‘‘4th 20%’’ value (0.2%) and the ‘‘Bottom 20%’’ value (0.1%) are not visible in the ‘‘Actual’’ distribution, i.e., the bottom 40% of Americans own about 0.3% of all wealth. Ideal distributions were what Americans thought they should be, e.g., the top 20% owning about 33%. Clearly, Americans were unaware that the top 20% of Americans own about 84% of the wealth.

The distribution graph below is based on 2016 data.


B&B orig: 4/20/19


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