Income Disparity in     America                          By Floyd Saunders          Author of Figuring Out Wall Street    ...
“Facts are stubborn things; and  whatever may be our wishes, our  inclinations, or the dictates of ourpassions, they canno...
Income in America                                                                             Who Make What               ...
Income in The American EconomyIncreasedProductivity =Higher Incomes       Right?
Productivity       Productivity increases       continued even during       the 2008-09 recession              So did wage...
Pre-Tax Income 1979 to 2007 $250,000 or More $150K to $250K $100K to $150K                               Incomes for 90%  ...
IF TRICKLE DOWN ECONOMICSAND TAX CUTS WORKED    Then personal income would increase right?“Job Creators” would expand jobs...
Changes in After-Tax Income         Most of the income         gains occurred at the top,         so where are the jobs?
Personal Income     Total Personal Income dips and    then recovers in the recession of                2008-09
So, how is that trickle down approach working for 90% of Working Americans?No so good, 90% of Americans, 133 million famil...
Wealth and Income in America• 83% of U.S. stocks are owned by 1 of the  population• The Top 10% earn 50% of the national  ...
Small Business Millionaires?                                                   Less than 2% of small                      ...
How is Your Standard of Living?• The bottom 50% own less than 1% of the wealth• 61% of Americans live from paycheck to pay...
Personal Income                       • Is your personal income                          growing?                       • ...
Personal Income    2008Recession
U.S. Household Income                         Updated                        9/28/2010
Average Income By Family                   Forbes 400 richest AmericansBottom90% ofincomes inAmericaaverages $31,244
US Income of Top 1%While 90% of Americans have seen their incomes decline by 4%,  incomes of the top 1% have grown signifi...
Income Disparity in America“Growth becomes more fragile” in countries with highlevels of inequality like the United States...
US Income DistributionTop 1% vs. 90% Average Income 1917 to 2009
Fun (or not so Fun) FactsA rising tide does not necessarily lift all ships.• Forbes 400 richest Americans have a combined ...
Two Rules to Live By1. Spend Less Than You Make2. Pay Yourself First
What Happens When You              Honor Rule #1?You Spend Less Than You Makeand have some for saving and investing       ...
What Happens When You           Violate Rule #1?You Spend More Than You Make              • Borrow Money              • Cr...
Pay Yourself FirstHow Much Money CouldYou Earn If…                  Saved $15/day                  until you were 65?     ...
Reference Material     Family Financial Freedom     140 pages     ISBN 978-1-60-746269-9     Available Formats:     6"x9" ...
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Income disparity in america

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Understanding the basics of personal income, taxes, job creation and wealth in America. This is simply the historical facts bringing us to where we are today. From the Author of "Figuring Out Wall Street" and "Family Financial Freedom."

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Income disparity in america

  1. 1. Income Disparity in America By Floyd Saunders Author of Figuring Out Wall Street and Family Financial Freedom
  2. 2. “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of ourpassions, they cannot alter the state of facts and evidence . . .” – John Adams
  3. 3. Income in America Who Make What U.S. population by Income Income class Defined as Top 1%Poverty Level/Working A family of four with income sufficient to Top 5% to $250K or cover bare essentials working a mimimum $250,000 more Poor wage jobs 16% Lowest end of middle class, blue - collar, paid Top Working Working Class by the hour, lower levels of education 10% Poor to $150K under Lower level, white-collar workers, mostly Lower-Middle Class college educated 18% $24,500 High-level, white-collar jobs, typically with Upper- Upper-Middle Class graduate degrees Middle 31% The top end of the upper Middle class, Class to Working $100K 19% Class to working professionals. Doctors, lawyers, The Top 10 percent corporate management and small business Lower- owners. Middle $32,500 Excutive corporate management, small The Five Percent business owners and professionals Class Largely inherited wealth and wealthy to $60,000 investors. Only 1.9% of small businesses have The One Percent incomes over $250,000. 50% of that are high income investors.
  4. 4. Income in The American EconomyIncreasedProductivity =Higher Incomes Right?
  5. 5. Productivity Productivity increases continued even during the 2008-09 recession So did wages increase with productivity?
  6. 6. Pre-Tax Income 1979 to 2007 $250,000 or More $150K to $250K $100K to $150K Incomes for 90% of Americans have $60K to $100K remained flat or fallen during the $32,501 to $60K era of the “Bush Tax cuts”. $24,501 to $32,500 Looks likes wages have not increased $24,500 with increased productivity under $15K
  7. 7. IF TRICKLE DOWN ECONOMICSAND TAX CUTS WORKED Then personal income would increase right?“Job Creators” would expand jobs andthe economy would grow, creatingmore tax revenues. Let’s see, what happened. . .
  8. 8. Changes in After-Tax Income Most of the income gains occurred at the top, so where are the jobs?
  9. 9. Personal Income Total Personal Income dips and then recovers in the recession of 2008-09
  10. 10. So, how is that trickle down approach working for 90% of Working Americans?No so good, 90% of Americans, 133 million families saw incomes decline by 4%.
  11. 11. Wealth and Income in America• 83% of U.S. stocks are owned by 1 of the population• The Top 10% earn 50% of the national income• The Top 1% own two times of the wealth compared to 15 years ago.• 66% of income growth between 2000 and 2007 went to the top 1%.• The # of millionaires increased 16% in 2009 to 7.8 million This is not a bad thing by the way. Except for wealth does not trickle down
  12. 12. Small Business Millionaires? Less than 2% of small business owners have incomes over $250K50% of the top income earners are in fact investors and hedge fund owners.
  13. 13. How is Your Standard of Living?• The bottom 50% own less than 1% of the wealth• 61% of Americans live from paycheck to paycheck in 2011, 49% in ‘09 and 32% in ‘08.• Personal bankruptcy increased by 32% in ‘08 to 1.4 mm• 43 million American use food stamps, mostly the ederly, children and the working poor. 59% are White, 27% are Black• 45% have less than $10,000 saved for retirement• 36% contribute nothing• 24% postpone retirement by at least a year. Land of Opportunity?
  14. 14. Personal Income • Is your personal income growing? • Staying the same? • Or in decline?An expanding middle class is essential to economic growth
  15. 15. Personal Income 2008Recession
  16. 16. U.S. Household Income Updated 9/28/2010
  17. 17. Average Income By Family Forbes 400 richest AmericansBottom90% ofincomes inAmericaaverages $31,244
  18. 18. US Income of Top 1%While 90% of Americans have seen their incomes decline by 4%, incomes of the top 1% have grown significantly every year, except for 2008-09.
  19. 19. Income Disparity in America“Growth becomes more fragile” in countries with highlevels of inequality like the United States- Jonathan D. Ostry of the International Monetary Fund
  20. 20. US Income DistributionTop 1% vs. 90% Average Income 1917 to 2009
  21. 21. Fun (or not so Fun) FactsA rising tide does not necessarily lift all ships.• Forbes 400 richest Americans have a combined net worth is $1.7 trillion – or the combine yearly household income of more than 64 million Americans.• Between 1979 and 2007 – the top 1% of households doubled their share of pretax income – while the share of the bottom 80% fell. (CBO)
  22. 22. Two Rules to Live By1. Spend Less Than You Make2. Pay Yourself First
  23. 23. What Happens When You Honor Rule #1?You Spend Less Than You Makeand have some for saving and investing • Honor Rule #2: Pay Yourself First
  24. 24. What Happens When You Violate Rule #1?You Spend More Than You Make • Borrow Money • Credit Card • Balance of $5,000 at 17% Interest • Minimum Payment • 81 years to pay off the balance
  25. 25. Pay Yourself FirstHow Much Money CouldYou Earn If… Saved $15/day until you were 65? Coffee/hot chocolate & snacks $15 Save $15 everyday for one month $420 Rate of Return 5.00% At Age 65 $1,000,000
  26. 26. Reference Material Family Financial Freedom 140 pages ISBN 978-1-60-746269-9 Available Formats: 6"x9" paperback PDF download eBook download Link to order: http://www.fastpencil.com/publications/4498-Family- Financial-Freedom?tid=bookbuy#read_book Also available on Kndle, Nook, iPad and other popular e- readers Book summary: You might be struggling to make ends meet, but achieving true financial freedom is still possible. The good news is virtually anyone with a desire to learn and the willingness to plan can achieve a considerable degree of financial security. This book is a road map to the personal financial freedom you want and deserve. There are no quick-rich schemes here, just common sense advice on how to manage your money, protect your family from risks and start making the moves to being more financial secure.

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