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To: Comparative Advantage
Check out the statistics of income at the Census Bureau website. The income distribution is a lot flatter than most people realize. http://www.census.gov/hhes/www/cpstables/032011/hhinc/new05_000.htm

The lowest quintile of U.S. households have incomes in the $0-$20,000 range. The second quintile is approximately $20,000-$38,000; the third $38,000-$61,000; the fourth, $61,000 to $100,000; and "the rich" -- i.e. the top quintile -- start at $100,000. The top 5% starts at $180,000. Remember, that's household income, so the married schoolteacher couples, each with a $60,000 income, are well into the top quintile. I don't think the teechurs onions tell 'em that, though.

This has been a pet peeve of mine for years. A lot of people with perfectly good upper middle class incomes think they're earning chump change. Somehow, between the press, the democrats, and images of effortless affluence on tv, a substantial portion of the public has been convinced that there's some mysterious army of people out there making middle- to high six figures who can be taxed at will.

It is frustrating to argue politics with a GS-15 federal worker who is earning $130,000, married to a husband earning about the same, who simply cannot process the fact that she is in the top 2% or so of the household income distribution. Not a hypothetical example.

6 posted on 09/14/2011 2:12:50 PM PDT by sphinx
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To: sphinx

You make a very good point.

People tend to compare themselves to their neighbors and coworkers. Yet those are a function of how much they earn. Everyone feels average because they are near the average of their friends.

Also, government workers feel very confident that the next paycheck is a certain thing. Then they tend to live paycheck to paycheck and never build wealth.


7 posted on 09/14/2011 7:50:40 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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