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I see what you're saying. The next tier down from the rich are more culpable (and well-off) than they realize. I get that that is the authors point, and I agree
by anbende 8y ago
I see what you're saying. The next tier down from the rich are more culpable (and well-off) than they realize. I get that that is the authors point, and I agree that it's a good one and one worth making. What I'm saying, is that saying "the 9.9%" have the majority of the wealth (50-60%) is a little disingenuous, because while wealth goes up exponentially, at that point you start running out of money at the high end.
If I said that 70% of the wealth is in the 9.99% and the remaining .01% only have 20% (or whatever it is), that would seem a little odd right? Or 9.999% have 75% and .001% only have 15%? Making cutoffs like this feels like the author is mishandling the numbers in order to make his point. Because there really is a pretty big difference between $1m (90th percentile) in net-worth and $6m (99th). $1m in net-worth quite comfortable but not "rich" by even a very liberal definition of the term in most cities (remember most of that is going to be locked up in a primary residence).
And in the end, yes, it is important to recognize our wealth and privilege and the civic responsibility that comes with it. I just don't like it when numbers are mis-represented, whether the underlying point is valid or not.
- anonymouskimmer 8y ago"$1m in net-worth quite comfortable but not "rich" by even a very liberal definition of the term in most cities (remember most of that is going to be locked up in a primary residence)." Selling the $1M house nets about $800k after capital gains. 5% investment interest on that nets about $40k/year without touching the principal. It's definitely possible for a family of two to live on this amount fairly comfortably in a quite decent apartment in a quite decent neighborhood away from the coasts. I know because I was, and making debt service payments on top of it. Get a part time job as a package handler at UPS or FedEx - for the exercise, of course - and you're sitting pretty. A middle-income lifestyle without having to work meets the cutoff for my definition of rich.