Question
Big changes can happen to wealth distribution. In the twentieth century those were WWII and the Reagan presidency. Both profoundly changed wealth distribution. Below we
Big changes can happen to wealth distribution. In the twentieth century those were WWII and the Reagan presidency. Both profoundly changed wealth distribution. Below we have an economy undergoing such a transition in periods A, B. Given are decile distributions (example, for the poorest 20% of the population system A pays 4% of the countrys wealth to this segment whereas B pays 2%).
CAUTION: The deciles below are cumulative, hence any change is carried forward and felt long after. For example decile 30% have a 3 (9-6) difference. However the difference really is only 1 (9-4 versus 6-2).
% Population % Income A % Income B
10 1 1
20 4 2
30 9 6
40 16 12
50 25 20
60 36 31
70 49 44
80 64 60
90 81 78
100 100 100
1.Despite both 10% being paid the same, system _ pays more to decile 20% through _ %.
2.How many of the middle deciles are paid the same?
3.These same paid deciles are:
4.The biggest difference between the two systems is what is paid to decile _ %.
5.Of all data in both systems, the decile paid the most is _ % in system _
6.System _ has a more equitable wealth distribution.
Extra Credit (+11):
When graphing the above data, they resemble droopy telephone wires climbing a hill. If system C has the top 10% enslaving everyone else then the distribution no longer resembles telephone wires, but looks like . . . ?
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