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What have we learned?

Title and author:

author image W. Christian

What have we learned?

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In the United States the wealthiest person has billions of times more wealth than the very poor, who have little or even negative wealth if they are in debt. Many people believe that the poor receive more from the government than the rich. However, the results of our simple model suggest the opposite conclusion, because we found that an equal distribution of wealth results in much more equality than exists in the United States. Consistent with this conclusion is the report by the Corporation for Enterprise Development that “… an analysis of $340 billion in tax subsidies for housing, education, retirement and savings in 2013, [showed that] the top 1 percent received about $95 billion, more than the $90 billion received by the bottom 80 percent combined.” As noted, there are big subsidies to various industries such as agribusiness and oil and gas companies which do not directly benefit the lowest strata of society. The United States is a long way from using the tax system to promote wealth equality or even to prevent excessive wealth inequality.


Excerpt From: Tobochnik, Christian, and Gould. “Modeling Wealth Inequality.” iBooks.