Is It a Problem If One Percent of Americans Possess 50% of American Wealth and Assets? Essay

One percent of Americans possess more cash, stocks and property than the assets of 155 million Americans combined. How could it be that 400 people have more wealth than half of the more than 100 million U. S. households? The distribution of wealth pertains to allotment of wealth in a given place and/or time. It measures the application of wealth at any given moment and can also point out if the owner of this wealth is becoming more concerted or more democratic. The distribution of wealth is usually cited as the amount of wealth owned by each individual (or family or household) relative to the total wealth of a society.

Since the supply of wealth summarizes differences in prosperity owning among persons. The most common methods of calculating the inequality or distribution of wealth is measuring the percentages of total wealth owned by selected percentages of a sample population. Individuals are ranked by Economist according to their wealth and report the shares of the total wealth that are owned by proportions of the population. For example, the top 1, 5, and 10 percent of wealth holders owns what percentage of the total wealth. … Encyclopedia of Urban America: The Cities and Suburbs…

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Studies of the dissimilarity of wealth often analyze the demographic and economic correlates of individual wealth holding and how these correlates affect dissimilarity. These studies show that the most significant demographic characteristic in determining wealth is age; typically, wealth increases with age. People have a tendency to save while they’re employed, and then devour their savings after they retire. Occupation and nativity also affects the ownership of wealth. Professionals and Merchants generally have higher incomes than manual and unskilled laborers, and they tend to be overrepresented among the wealthy.

Historically, immigrants to the United States arrive with little or no wealth. However, the income of immigrants increases more rapidly than Native Americans. This can perhaps be attributed to wealth holdings. Economic historians have long known that the distribution of wealth has been highly unequal throughout American history; a small percentage of the population has always owned a disproportionately large share of the wealth. Yet it is nearly impossible to determine long-term trends in the inequality of wealth because there are no consistent, representative data for extended periods of time.

It is possible, however, to survey a number of studies to understand wealth inequality in different periods. This can always become a problem if the economy and the disproportion of wealth reach epidemic proportions. Whereas, if civil unrest develops, and the masses of underprivileged individuals surreptitiously unite; and take over the wealth of the privileged. However, with the protection of the police departments, military, federal agents and bureaucracies sworn to protect the privileged, it’s not likely that a rebellion would succeed.

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