A People’s Portfolio of the United States

Divested ◽  
2020 ◽  
pp. 137-156
Author(s):  
Ken-Hou Lin ◽  
Megan Tobias Neely
Keyword(s):  
United States ◽  
Wealth Inequality ◽  
The United States ◽  
Household Wealth ◽  
Wealth Accumulation ◽  
Social Scientists ◽  
Distribution Of Wealth ◽  
Baby Boomer Generation ◽  
Social Class Inequality

This chapter focuses on how finance has transformed household wealth—a trend with long-term implications for how social-class inequality becomes entrenched. It first reviews the uneven distribution of wealth in the United States. Wealth inequality has risen since the last quarter of the 20th century. Today, fewer American families have sufficient means to accumulate wealth over time, and the concentration of capital in the hands of a select few has widened the fault line between the richest and the rest. The chapter also examines how the distribution of wealth has changed across generations—more precisely, what social scientists call “cohorts.” That is, wealth for the baby boomer generation differs greatly from wealth among the millennials. Since wealth accumulation develops over the course of a person’s life, families in young adulthood and near retirement are considered.

scholarly journals Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data *

2016 ◽  
Vol 131 (2) ◽  
pp. 519-578 ◽  
Author(s):  
Emmanuel Saez ◽  
Gabriel Zucman
Keyword(s):  
United States ◽  
Income Tax ◽  
Wealth Inequality ◽  
The United States ◽  
Balance Sheets ◽  
Distribution Of Wealth ◽  
Consumer Finances ◽  
Wealth Concentration ◽  
Top Incomes ◽  
Tax Returns

Abstract This paper combines income tax returns with macroeconomic household balance sheets to estimate the distribution of wealth in the United States since 1913. We estimate wealth by capitalizing the incomes reported by individual taxpayers, accounting for assets that do not generate taxable income. We successfully test our capitalization method in three micro datasets where we can observe both income and wealth: the Survey of Consumer Finance, linked estate and income tax returns, and foundations’ tax records. We find that wealth concentration was high in the beginning of the twentieth century, fell from 1929 to 1978, and has continuously increased since then. The top 0.1% wealth share has risen from 7% in 1978 to 22% in 2012, a level almost as high as in 1929. Top wealth-holders are younger today than in the 1960s and earn a higher fraction of the economy’s labor income. The bottom 90% wealth share first increased up to the mid-1980s and then steadily declined. The increase in wealth inequality in recent decades is due to the upsurge of top incomes combined with an increase in saving rate inequality. We explain how our findings can be reconciled with Survey of Consumer Finances and estate tax data.

scholarly journals Universal Baby Bonds Reduce Black-White Wealth Inequality, Progressively Raise Net Worth of All Young Adults

2019 ◽  
Vol 47 (1) ◽  
pp. 3-19 ◽  
Author(s):  
Naomi Zewde
Keyword(s):  
Young Adults ◽  
Panel Study ◽  
Wealth Inequality ◽  
The United States ◽  
Household Wealth ◽  
Racial Inequalities ◽  
Net Worth ◽  
Distribution Of Wealth ◽  
Wealth Inequalities ◽  
Racial Lines

The distribution of wealth has grown increasingly unequal, especially along racial lines. Lawmakers and researchers propose to address the issue with universal “baby bonds,” paid to every newborn and preserved until young adulthood. Bond values are tied inversely to wealth up to a $50,000 maximum investment. This study uses longitudinal data from the Panel Study of Income Dynamics on the assets of young adults to simulate contemporary racial inequalities under a counterfactual policy environment in which the United States had administered baby bonds when the current cohort of young adults were newborns. Initial bond values are defined categorically by quintiles of household wealth observed in 1989 and 1994, smoothed across the inverse hyperbolic sine of household wealth, and then assumed to grow at 2% per year through 2015. Without baby bonds, young White Americans hold approximately 16 times the wealth of young Black Americans at the median ($46,000 vs. $2,900). Baby bonds reduce the disparity to a factor of 1.4 ($79,143 vs. $57,845), in the absence of intervening behavioral responses to the policy. The share held by the top decile decreases from 72% to 65%, marginally approaching the more egalitarian societies. Baby bonds considerably narrow wealth inequalities while simultaneously improving the net asset position of young adults and alleviating asset concentration.

scholarly journals Recent Trends in the Size Distribution of Household Wealth

1998 ◽  
Vol 12 (3) ◽  
pp. 131-150 ◽  
Author(s):  
Edward N Wolff
Keyword(s):  
United States ◽  
Racial Disparities ◽  
Size Distribution ◽  
The United States ◽  
Household Wealth ◽  
Survey Of Consumer Finances ◽  
Net Worth ◽  
Distribution Of Wealth ◽  
Consumer Finances ◽  
Recent Trends

Based on the Survey of Consumer Finances, the distribution of wealth in the United States became much more unequal in the 1980s and that trend continued, albeit at a slower pace, in the 1990s. The only households that saw their mean net worth rise in absolute terms between 1983 and 1995 were those in the top 20 percent and the gains were particularly strong for the top one percent. All other groups were particularly strong for the top one percent. All other groups suffered real wealth losses, including the median household, and declines were particularly precipitous at the bottom. Racial disparities widened, and young households also lost out over this period.

Speech-Language Pathology in the Peace Corps: Necessity and Sustainability

2012 ◽  
Vol 2 (1) ◽  
pp. 11-18
Author(s):  
Melissa A. Pierce
Keyword(s):  
United States ◽  
Special Education ◽  
Peace Corps ◽  
People With Disabilities ◽  
Communication Disorders ◽  
The United States ◽  
Speech Language Pathology ◽  
Speech Language Pathologists ◽  
Language Pathology

In countries other than the United States, the study and practice of speech-language pathology is little known or nonexistent. Recognition of professionals in the field is minimal. Speech-language pathologists in countries where speech-language pathology is a widely recognized and respected profession often seek to share their expertise in places where little support is available for individuals with communication disorders. The Peace Corps offers a unique, long-term volunteer opportunity to people with a variety of backgrounds, including speech-language pathologists. Though Peace Corps programs do not specifically focus on speech-language pathology, many are easily adapted to the profession because they support populations of people with disabilities. This article describes how the needs of local children with communication disorders are readily addressed by a Special Education Peace Corps volunteer.

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