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Income
Distribution in
the United States


$0   $50,000   $100,000   $150,000   $200,000   $250,000
Visualizing Economics                           Visit www.visualizingeconomics.com
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Visualizing Economics                Visit www.visualizingeconomics.com
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Visualizing Economics               Visit www.visualizingeconomics.com
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Visualizing Economics                                                            Visit www.visualizingeconomics.com
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Visualizing Economics                       Visit www.visualizingeconomics.com
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Visualizing Economics                                                            Visit www.visualizingeconomics.com
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Income Distribution in the United States

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Series of graphs illustrating the distribution of income in the United States which I posted to my blog, VisualizingEconomics.com

Published in: Business, Technology
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  • The highest Census Income category is $250,000 and above.
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  • I could hardly read anything, but thnx anyway.

    http://www.extraincometip.com
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  • Thank you. As a history teacher, I'd love if the graphs were aligned by presidential tenure; even better would be a notation on which party controlled congress. But you've done some sweet work. Thanks for sharing.
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Transcript of "Income Distribution in the United States"

  1. 1. Income Distribution in the United States $0 $50,000 $100,000 $150,000 $200,000 $250,000
  2. 2. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1913–2004 United States Av e r a g e I n c o m e Includes Capital gains Does not include Capital gains Income per Tax Unit 2004 US$ & bust om $50,000 k bo 1987 1973-74 stoc Stock market crash 1979 Arab oil embargo com Iranian oil embargo Iraq Dot Wa r $40,000 G ar u W m l oo f am b r II Wa n W et ld or Vi a $30,000 t-W r s Po rn Wa rea 1929 Ko Stock market crash $20,000 n io s World Gr es r ea War II ep World t D War I $10,000 Woodrow Calvin Franklin Dwight Lyndon Gerald Ronald Bill Wilson Coolidge Roosevelt Eisenhower Johnson Ford Reagan Clinton Warden Herbert Harry John Richard Jimmy George George W. Hoover Truman Kennedy Nixon Carter Bush Bush Harding $0 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004 Average Income Prof. Emmanuel Saez’s Web site, University of California, Berkeley, http://elsa.berkeley.edu/~saez/TabFig2004prel.xls (accessed August 25, 2006)
  3. 3. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1947–2004 United States Fa m i l y I n c o m e b y N u m b e r o f E a r n e r s (Median 2004 dollars) Recessions are represented by the gray bars. Each bar starts at the peak of a business cycle and ends at the trough $120,000 G World Ir a q Korean u am War Vie tn War II l War Wa r f W $100,000 a $100,000 r $85,178 $80,000 $71,246 4 Earners $60,000 3 Earners $40,000 $37,618 2 Earners $22,349 $20,000 1 Earner No Earners $0 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004 Woodrow Calvin Dwight Lyndon Gerald Ronald Bill Franklin Wilson Coolidge Eisenhower Johnson Ford Reagan Clinton Roosevelt Warden Herbert Harry John Richard Jimmy George George W. Harding Hoover Truman Kennedy Nixon Carter Bush Bush
  4. 4. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 2005 United States Income Distribution (Bottom 98%) Each equals 500,000 households 112,363,000 households below $250,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 Median Average (Mean) To t a l 1 1 4 , 3 8 4 , 0 0 0 households $46,326 $63,344 20% 40% 60% 80% 95% 98% less than less than less than less than less than less than $19,178 $36,000 $57,660 $91,705 $166,000 $250,000
  5. 5. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 2005 United States Income Distribution (Less than $5 million) The Bottom 99.99% (Income less than 5 million) 99.99% of 98% of make less than make less than $5,000,000 $250,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $0 $250,000 $5,000,000 $1,200,000 The Bottom 98% (Income less than 250 thousand) 98% of make less than $250,000 112,363,000 households below $250,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $250,000 $0
  6. 6. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 2005 United States T h e To p 1 0 B e s t - P a i d : C E O s , C e l e b r i t i e s , a n d H e d g e Fu n d M a n a g e r s Income less than $1.5 billion 99.99% of make less than $5,000,000 In 2000, you needed $86 million to make the top 400 highest incomes reported to the IRS. CEOs Celebrities Hedge Fund Managers $0 $50,000,000 $500,000,000 $1,000,000,000 $1,500,000,000 The Bottom 99.99% (Income less than 5 million) 99.99% of 98% of make less than make less than $5,000,000 $250,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $5,000,000 $0 $250,000
  7. 7. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1929–2004 United States Income/GDP Ratio (excluding capital gains) 45% Share of GDP going to bottom 90% 40% 35% G u World Iraq l Korean am War 30% Vie tn War II f Wa r War W a 25% r 20% Share of GDP going to top 10% In 2004: 15% bottom 90% < $92,315 < top 10% 10% Woodrow Calvin Franklin Dwight Lyndon Gerald Ronald Bill 5% Wilson Coolidge Roosevelt Eisenhower Johnson Ford Reagan Clinton Warden Herbert Harry John Richard Jimmy George George W. Hoover Truman Kennedy Nixon Carter Bush Bush Harding 0% 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
  8. 8. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1929–2004 United States Share of GDP for bottom 99th, 95th, and 90th ( Ta x U n i t s i n c l u d e c a p i t a l g a i n s ) Recessions are represented by the gray bars. Each bar starts at the peak of a business cycle and ends at the trough 60% Share of GDP going to bottom 99th income less than $316,806 in 2004 50% Share of GDP going to 47% bottom 95th Income less than $131,443 in 2004 40% 38% Share of GDP going to bottom 90th Income less than $95,386 31% in 2004 G 30% u l f World Ir a q Korean am War Vie tn War II War W Wa r a 20% r 10% 0% 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004 Woodrow Calvin Dwight Lyndon Gerald Ronald Bill Franklin Wilson Coolidge Eisenhower Johnson Ford Reagan Clinton Roosevelt Warden Herbert Harry John Richard Jimmy George George W. Harding Hoover Truman Kennedy Nixon Carter Bush Bush
  9. 9. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1913-2004 United States To p 0 . 1 Pe r c e n t c o m p a r e d t o To p M a r g i n a l Ta x R a t e 9.9% 94% 8.6% 6.9% Top Marginal Tax Rate 35% 7% Percentage of Income going to the Top 0.1 Percent 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004 The cut off for the Top 0.1 Percent in 2004: U.S. Top 0.1 Percent $0 $50,000 $100,000 $150,000 $200,000 $250,000 $0 $1.1 million
  10. 10. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1 9 1 3 - 2 0 0 4 U n i t e d S t a t e s , C a n a d a , U n i t e d K i n g d o m , Fr a n c e , J a p a n Pe r c e n t a g e o f I n c o m e g o i n g t o t h e To p 0 . 1 Pe r c e n t World War I World War II 8% U.S. Top 0.1 Percent 6.9% United States $0 $50,000 $100,000 $150,000 $200,000 $250,000 $0 $1.1 million 5.2% Canada 0% 8% 6.9% United States 3.3% United Kingdom 0% 8% 6.9% United States 2.0% France 0% 8% 6.9% United States 2.2% Japan 0% 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004 94% Top Marginal Tax Rate for the United States 35% 7%
  11. 11. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1916-2005 United States W h a t % o f t h e To p 0 . 0 1 ’s I n c o m e c o m e s f r o m C a p i t a l G a i n s ? World War II World War I 100% Top 0.01 determined by income that excludes capital gains. 55% 18% Capital Gains 4% 1917 1928 1939 1950 1961 1972 1983 1994 2005 U.S. Top 0.01 Percent (excluding capital gains) $0 $50,000 $100,000 $150,000 $200,000 $250,000 The cut off for the Top 0.01 Percent in 2005: $5.9 million $0 U.S. Top 0.01 Percent (including capital gains) $0 $50,000 $100,000 $150,000 $200,000 $250,000 The cut off for the Top 0.01 Percent in 2005: $0 $9.5 million 100% Top 0.01 determined by income that 85% includes capital gains. 51% Capital Gains 14% 1917 1928 1939 1950 1961 1972 1983 1994 2005
  12. 12. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1916-2005 United States S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n t Income Sources including Capital Gains World War I World War II Wage Income defined as wages and salaries and pensions (and includes bonuses, stock-option exercises, etc.) 34% 5% Entrepreneurial Income defined as profits from S-Corporations (entities 28% not subject to corporate taxes and taxed only at 23% the individual level) plus profits from Partnerships plus profits from sole proprietorship businesses (Schedule C income) plus farm income Capital Gains 18% 4% 55% Dividend Income 11% Interest Income 9% 8% Rental Income 3% 4% 1917 1928 1939 1950 1961 1972 1983 1994 2005 U.S. Top 0.01 Percent (calculated excluding capital gains) $0 $50,000 $100,000 $150,000 $200,000 $250,000 The cut off for the Top 0.01 Percent in 2005: $5.9 million $0
  13. 13. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1916-2005 United States S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n t Income Sources including Capital Gains 100 Rental Income 3% Interest Income 8% 90 Dividend Income 11% 80 Capital Gains 18% 70 60 Entrepreneurial Income 28% 50 defined as profits from S-Cor- porations (entities not subject to corporate taxes and taxed 40 only at the individual level) plus profits from Partnerships 30 plus profits from sole propri- etorship businesses (Schedule C income) plus farm income 20 Wage Income 34% 10 defined as wages and salaries and pensions (and includes bonuses, stock-option exercises, etc.) 0 1917 1928 1939 1950 1961 1972 1983 1994 2005 U.S. Top 0.01 Percent (calculated excluding capital gains) $0 $50,000 $100,000 $150,000 $200,000 $250,000 The cut off for the Top 0.01 Percent in 2005: $5.9 million $0
  14. 14. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1916-2005 United States S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n t I n c o m e S o u r c e s E xc l u d i n g C a p i t a l G a i n s World War I World War II Wage Income defined as wages and salaries and pensions (and includes bonuses, stock-option exercises, etc.) 49% 14% Entrepreneurial Income defined as profits from S-Corporations (entities 36% not subject to corporate taxes and taxed only at 31% the individual level) plus profits from Partnerships plus profits from sole proprietorship businesses (Schedule C income) plus farm income 40% Dividend Income 7% Interest Income 10% 6% Rental Income 3% 5% 1917 1928 1939 1950 1961 1972 1983 1994 2005 U.S. Top 0.01 Percent (calculated excluding capital gains) $0 $50,000 $100,000 $150,000 $200,000 $250,000 The cut off for the Top 0.01 Percent in 2005: $5.9 million $0
  15. 15. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1913–2005 United States Income Income 2005 US$ BLS GDP per $90,000 Employed person oom &b kb ust toc $80,000 CBO ms 1987 Average Household t co Stock market crash Do Census 1979 $70,000 Average Family Iranian oil embargo 1973-74 Census Arab oil embargo Average Household $60,000 Census Median Family Seaz Average Tax $50,000 Units with cap gains Census Median Household Seaz Average Tax Units without cap gains $40,000 G u ar l W $30,000 m f 1929 na Iraq Stock market crash et War Vi W $20,000 rn a Wa rea r Ko n World World sio $10,000 es War II Gr War I pr ea De t $0 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004 Woodrow Calvin Dwight Lyndon Gerald Ronald Bill Franklin Wilson Coolidge Eisenhower Johnson Ford Reagan Clinton Roosevelt Warden Herbert Harry John Richard Jimmy George George W. Harding Hoover Truman Kennedy Nixon Carter Bush Bush
  16. 16. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1913–2005 United States Po p u l a t i o n 300,000,000 Census Population 250,000,000 200,000,000 BLS Civilian Labor Force 150,000,000 Saez Tax Units BLS Employment Seaz Tax Returns Census Household 100,000,000 Census Family 50,000,000 Dept of Defense Armed Services 0 1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
  17. 17. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1913–2005 United States Po p u l a t i o n R a t i o s Pe r Ta x U n i t Pe r H o u s e h o l d Single, married filling jointly, or head of household All the people who occupy a housing unit as their usual place of residence 4.5 4.0 3.5 # of people per Household 3.0 # of people per Tax Unit 2.5 2.0 # of employed people # of employed people per Household 1.5 per Tax Unit 1.0 0.5 0.0 1914 1934 1954 1974 1994 1914 1934 1954 1974 1994
  18. 18. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 2005 United States Income Distribution (Bottom 98%) Logarithmic Scale for Income 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 $100 $1,000 $10,000 $100,000 $250,000 Median Average (Mean) To t a l 1 1 4 , 3 8 4 , 0 0 0 households $46,326 $63,344 20% 40% 60% 80% 95% 98% less than less than less than less than less than less than $19,178 $36,000 $57,660 $91,705 $166,000 $250,000
  19. 19. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1975-2005 United States Gross Domestic Product by Industry Va l u e A d d e d ; Pe r c e n t a g e o f G D P Losers ranked by % of GDP in 2005 Wi n n e r s r a n k e d b y % o f G D P i n 2 0 0 5 1975 1980 1985 1990 1995 2000 2005 1975 1980 1985 1990 1995 2000 2005 Finance, Insurance, 20.4 Real Estate, Leasing Government 15.1 15.1 12.6 20.6 Manufacture Professional and 12.1 11.7 Business Services 5.7 Educational Services, Retail Trade Health Care, Social Assistance 7.8 7.8 6.6 4.5 Whole Sale Trade Construction 7.0 6.0 4.9 4.6 Transportation, Information Warehousing 4.5 3.4 2.8 3.6 Arts, Entertainment, Recreation, Accommodation, Food Services Utilities 3.6 2.8 2.0 2.3 Other Services Mining 1.9 2.3 2.1 2.3 Agriculture, Forestry, Fishing, Hunting 3.1 1.0
  20. 20. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1913-2006 United States Real Gross National Income per Capita In 2000 US dollars $40,000 $38,200 oom 2006 Est &b kb ust toc Iraq $35,000 ms War t co 1987 Do Stock market crash $30,000 1979 G Iranian oil embargo u $25,000 1973-74 l Arab oil embargo f $20,000 W a ar r W m $15,000 na et Vi 1929 rn Wa rea Stock market crash $10,000 Ko World War II $7,100 1929 n $5,000 World sio es Gr War I pr ea De t $0 1916 1926 1936 1946 1956 1966 1976 1986 1996 2006 Woodrow Calvin Dwight Lyndon Gerald Ronald Bill Franklin Wilson Coolidge Eisenhower Johnson Ford Reagan Clinton Roosevelt Warden Herbert Harry John Richard Jimmy George George W. Harding Hoover Truman Kennedy Nixon Carter Bush Bush
  21. 21. Visualizing Economics Visit www.visualizingeconomics.com to view more examples Making the Invisible Hand Visible 1964-2006 United States Av e r a g e H o u r l y E a r n i n g s of production and nonsuper visor y workers $16.76 $16.24 Adjusted for Inflation using CPI-W (2005 dollars) $15.49 Not Adjusted for Inflation (Constant dollars) $2.53 $16.31 $16.24 Adjusted for Inflation using CPI-W (2005 dollars) $15.49 Adjusted for Inflation using PCE Deflator (2005 dollars) $12.96 2005 Earning plus Benefits $19.57 1975 Earning plus Benefits $16.95 $16.31 Adjusted for Inflation using PCE Deflator (2005 dollars) $12.96 Recessions: each bar starts at the peak of a business cycle and ends at the trough Lyndon Gerald Ronald Bill Johnson Ford Reagan Clinton Richard Jimmy George George W. Nixon Carter Bush Bush
  22. 22. Goto VisualizingEconomics.com to view more graphs
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