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Forget the top 1% — Look at the top 0.1%

Posted By Barry Ritholtz On October 24, 2011 @ 2:30 pm In Economy,Wages & Income | Comments Disabled

Just today, I overheard someone say that income inequality must not be that bad, because you only need a few \$100,000 to be in the 99th percentile (see CNN/Money [1]) — that works out to be about \$343k to make the top 1%.

That is factually accurate, but misses the full wealth disparity issue. To see where the big bucks are, you need to look into the top 0.5%, 0.1%, 0.01% and lastly, and lastly, the top 0.001%.

The details of this were delightfully illustrated by Catherine Mulbrandon at TBP conference – PDF presentation here [2], video here [3].

Top 1% = \$368,238 (20.9% of income)
Top 0.5% = \$558,726 (16.8% of income)
Top 0.1% = \$1,695,136 (10.3% of income)
Top 0.01% = \$9,141,190 (5% of income)

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click for larger chart

[4]

URL to article: http://www.ritholtz.com/blog/2011/10/forget-the-top-1-look-at-the-top-0-1/

URLs in this post:

[1] CNN/Money: http://money.cnn.com/2011/10/20/news/economy/occupy_wall_street_income/index.htm?iid=HP_Highlight

[2] presentation here: http://www.ritholtz.com/blog/2011/10/mulbrandon-visualizing-economics-tbp-conference/

[3] video here: http://fora.tv/2011/10/11/Catherine_Mulbrandon_Illustrated_Guide_to_Income_in_US#The_One_Percent_Breaking_Down_US_Wealth_Distribution