Monday, October 31, 2011

The Top 1%

I am from India, a place where there is real poverty. India's poor aspire to the levels of wealth of the Western poor. The owe should be celebrating the fact that port people in North America are doing better than 99% of the world


But things always need to be kept in perspective. Only in America, I thought to myself after reading the article, can someone be driving a Jaguar and portrayed as living in an impoverished underclass. Context is crucial with these issues.
The recent Occupy Wall Street protests have aimed their message at the income disparity between the 1% richest Americans and the rest of the country. But what happens when you expand that and look at the 1% richest of the entire world? Some really interesting numbers emerge. If there were a global Occupy Wall Street protest, people as well off as Linda Frakes might actually be the target.
In America, the top 1% earn more than $380,000 per year. We are, however, among the richest nations on Earth. How much do you need to earn to be among the top 1% of the world?
$34,000.
That was the finding World Bank economist Branko Milanovic presented in his 2010 book The Haves and the Have-Nots. Going down the distribution ladder may be just as surprising. To be in the top half of the globe, you need to earn just $1,225 a year. For the top 20%, it's $5,000 per year. Enter the top 10% with $12,000 a year. To be included in the top 0.1% requires an annual income of $70,000.

1 comment:

Barnkat said...

Would be nice if you contrasted these stats with cost of living...

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