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Wealth inequality in America

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From the video Wealth Inequality in America

Published 7 Feb 2014

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Gini Coefficient illustration: a scale of wealth distribution is depicted where green squares represent the wealth of an individual within a population. On the left, every individual has a green square - equal wealth distribution. In the middle, the wealth sits with only half the population. On the right, all the wealth sits with only one person - they have a shiny crown and gold chain to display that wealth!

The Gini coefficient

Chinese zodiac calendar showing the 12 zodiac animals, their personality traits, and zodiac years from 2025 to 2036, with 2026 marked as the Year of the Horse and early-2026 births belonging to the Year of the Snake

Chinese Zodiac 2026: Year of the Horse, Animals, Years, and Meanings

Law of diminishing returns

Illustration of Adam Smith’s quote about trade: “It is not from the benevolence of the butcher, the brewer, or the baker…” showing how self-interest leads to mutual benefit in trade and a tipsy baker.

The Butcher, the Brewer, the Baker — Adam Smith quote

The Gini coefficient, or Gini index, is a common way to gauge income or wealth inequality within a population. The coefficient gives a single number showing how equal a distribution is. For example, in a population where everyone earns the same amount the Gini coefficient would be 0 — total equality — and in a population where one person earned all of the population's money, the Gini coefficient would be 1 (sometimes expressed as 100%) — maximum inequality. In practice all countries' Gini coefficients are somewhere in between, at around 0.25 to 0.5 after taxes. Like any simple measure the Gini has its difficulties, like being easily misinterpreted when compared, but is still widely used. The BBC has a short piece on its history and an alternative measure called the Palma ratio. Of course, we have some high profile zillionaires at the moment. You might like this old sketch of wealth inequality in America. Order printThe Gini coefficient, or Gini index, is a common way to gauge income or wealth inequality within a population. The coefficient gives a single number showing how equal a distribution is. For example, in a population where everyone earns the same amount the Gini coefficient would be 0 — total equality — and in a population where one person earned all of the population's money, the Gini coefficient would be 1 (sometimes expressed as 100%) — maximum inequality. In practice all countries' Gini coefficients are somewhere in between, at around 0.25 to 0.5 after taxes. Like any simple measure the Gini has its difficulties, like being easily misinterpreted when compared, but is still widely used. The BBC has a short piece on its history and an alternative measure called the Palma ratio. Of course, we have some high profile zillionaires at the moment. You might like this old sketch of wealth inequality in America. Order print

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