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Series of graphs illustrating the distribution of income in the United States which I posted to my blog, VisualizingEconomics.com
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$0 $50,000 $100,000 $150,000 $200,000 $250,000
Income Distribution in the United States
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004$0
$10,000
$20,000
$30,000
$40,000
$50,000
Post-World
War II
boom
1929Stock market crash
Great
Depressio
n
Kore
anW
ar
V i et n
a m W
a r
WorldWar II
I r a q Wa r
1973-74Arab oil embargo 1979
Iranian oil embargo
1987 Stock market crash
Dot co
m stock
boom
bust
Gulf
War
WorldWar I
Woodrow Wilson
WardenHarding
Calvin Coolidge
HerbertHoover
FranklinRoosevelt
HarryTruman
DwightEisenhower
JohnKennedy
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
&
Includes Capital gainsDoes not include Capital gains
1 9 1 3 – 2 0 0 4 U n i t e d S t a t e s
Av e r a g e I n c o m e
Income per Tax Unit2004 US$
Average Income Prof. Emmanuel Saez’s Web site, University of California, Berkeley, http://elsa.berkeley.edu/~saez/TabFig2004prel.xls (accessed August 25, 2006)
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Woodrow Wilson
WardenHarding
Calvin Coolidge
HerbertHoover
FranklinRoosevelt
HarryTruman
DwightEisenhower
JohnKennedy
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
Recessions are represented by the gray bars. Each bar starts at the peak of a business cycle and ends at the trough
1 9 4 7 – 2 0 0 4 U n i t e d S t a t e s
Fa m i l y I n c o m e b y N u m b e r o f E a r n e r s
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KoreanWar Vietnam WarWorld
War II Iraq War
Gulf
War
$71,246
$37,618
$22,349
$85,178
$100,000
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2 Earners
3 Earners
1 Earner
No Earners
4 Earners
( M e d i a n 2 0 0 4 d o l l a r s )
$0 $50,000 $100,000 $150,000 $200,000 $250,000
2 0 0 5 U n i t e d S t a t e s
I n c o m e D i s t r i b u t i o n ( B o t t o m 9 8 % )
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E a c h e q u a l s 5 0 0 , 0 0 0 h o u s e h o l d s
1 1 2 , 3 6 3 , 0 0 0 h o u s e h o l d s b e l o w $ 2 5 0 , 0 0 0
Average (Mean)$63,344
Median$46,326
20% less than$19,178
40% less than$36,000
60% less than$57,660
80% less than$91,705
95% less than$166,000
98% less than$250,000
To t a l 1 1 4 , 3 8 4 , 0 0 0 h o u s e h o l d s
$0 $50,000 $100,000 $150,000 $200,000 $250,000
98% of make less than $250,000
1 1 2 , 3 6 3 , 0 0 0 h o u s e h o l d s b e l o w $ 2 5 0 , 0 0 0
$0 $250,000
2 0 0 5 U n i t e d S t a t e s
I n c o m e D i s t r i b u t i o n ( L e s s t h a n $ 5 m i l l i o n )
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T h e B o t t o m 9 8 % ( I n c o m e l e s s t h a n 2 5 0 t h o u s a n d )
T h e B o t t o m 9 9 . 9 9 % ( I n c o m e l e s s t h a n 5 m i l l i o n )
$0 $50,000 $100,000 $150,000 $200,000 $250,000
98% of make less than$250,000
99.99% of make less than$5,000,000
$0 $5,000,000$250,000 $1,200,000
2 0 0 5 U n i t e d S t a t e s
T h e To p 1 0 B e s t - P a i d : C E O s , Ce l e b r i t i e s , a n d H e d g e Fu n d M a n a g e r s
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$0 $1,500,000,000
T h e B o t t o m 9 9 . 9 9 % ( I n c o m e l e s s t h a n 5 m i l l i o n )
$0 $50,000 $100,000 $150,000 $200,000 $250,000
98% of make less than$250,000
99.99% of make less than$5,000,000
$0 $5,000,000$250,000
$1,000,000,000$500,000,000
99.99% of make less than$5,000,000
$50,000,000
I n c o m e l e s s t h a n $ 1 . 5 b i l l i o n
In 2000, you needed $86 million to make the top 400 highest incomes reported to the IRS.
CEOsCelebrities
Hedge Fund Managers
1914 1924 1934 1944 1954 1964 1974 1984 1994 20040%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Woodrow Wilson
WardenHarding
Calvin Coolidge
HerbertHoover
FranklinRoosevelt
HarryTruman
DwightEisenhower
JohnKennedy
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
KoreanWar Vietnam WarWorld
War II I r a q Wa r
Gulf
War
In 2004:bottom 90% < $92,315 < top 10%
1 9 2 9 – 2 0 0 4 U n i t e d S t a t e s
I n c o m e / G D P R a t i o
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( e xc l u d i n g c a p i t a l g a i n s )
Share of GDP going to bottom 90%
Share of GDP going to top 10%
1914 1924 1934 1944 1954 1964 1974 1984 1994 20040%
10%
20%
30%
40%
50%
60%
KoreanWar Vietnam WarWorld
War II Iraq War
Gulf
War
Woodrow Wilson
WardenHarding
Calvin Coolidge
HerbertHoover
FranklinRoosevelt
HarryTruman
DwightEisenhower
JohnKennedy
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
Income less than $95,386 in 2004
Income less than $131,443 in 2004
income less than $316,806in 2004
47%
38%
31%
Recessions are represented by the gray bars. Each bar starts at the peak of a business cycle and ends at the trough
1 9 2 9 – 2 0 0 4 U n i t e d S t a t e s
S h a r e o f G D P f o r b o t t o m 9 9 t h , 9 5 t h , a n d 9 0 t h
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( Ta x U n i t s i n c l u d e c a p i t a l g a i n s )
Share of GDP going to bottom 90th
Share of GDP going to bottom 95th
Share of GDP going to bottom 99th
1 9 1 3 - 2 0 0 4 U n i t e d S t a t e s
To p 0 . 1 Pe r c e n t c o m p a r e d t o To p M a r g i n a l Ta x R a t e
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1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
6.9%
Percentage of Income going to the Top 0.1 Percent
Top Marginal Tax Rate
7%
35%
8.6%
9.9%94%
U.S. Top 0.1 Percent$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 $1.1 million
The cut off for the Top 0.1 Percent in 2004:
1 9 1 3 - 2 0 0 4 U n i t e d S t a t e s , C a n a d a , U n i t e d K i n g d o m , Fr a n c e , J a p a n
Pe r c e n t a g e o f I n c o m e g o i n g t o t h e To p 0 . 1 Pe r c e n t
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6.9% United States5.2% Canada
6.9% United States
3.3% United Kingdom
6.9% United States
2.0% France
6.9% United States
2.2% Japan
U.S. Top 0.1 Percent$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 $1.1 million
35% 7%
94%
World War I World War II
Top Marginal Tax Rate for the United States
0%
8%
0%
8%
0%
8%
1914 1924 1934 1944 1954 1964 1974 1984 1994 20040%
8%
1 9 1 6 - 2 0 0 5 U n i t e d S t a t e s
W h a t % o f t h e To p 0 . 0 1 ’s I n c o m e c o m e s f r o m C a p i t a l G a i n s ?
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1917 1928 1939 1950 1961 1972 1983 1994 2005
1917 1928 1939 1950 1961 1972 1983 1994 2005
World War I World War II
U.S. Top 0.01 Percent (excluding capital gains)$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 $5.9 millionThe cut off for the Top 0.01 Percent in 2005:
Top 0.01 determined by income that excludes capital gains.
18%
4%
Top 0.01 determined by income that includes capital gains.
51%
14%
Capital Gains
Capital Gains
U.S. Top 0.01 Percent (including capital gains)$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 The cut off for the Top 0.01 Percent in 2005: $9.5 million
100%
100%
55%
85%
World War I World War II
1 9 1 6 - 2 0 0 5 U n i t e d S t a t e s
S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n tI n c o m e S o u r c e s i n c l u d i n g C a p i t a l G a i n s
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Wage Income34%
Entrepreneurial Income28%
Dividend Income11%
Rental Income3%
Interest Income8%
5%
23%
55%
4%
9%
U.S. Top 0.01 Percent (calculated excluding capital gains)$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 $5.9 millionThe cut off for the Top 0.01 Percent in 2005:
defined as wages and salaries and pensions (and includes bonuses, stock-option exercises, etc.)
defined as profits from S-Corporations (entities not subject to corporate taxes and taxed only at the individual level) plus profits from Partnerships plus profits from sole proprietorship businesses (Schedule C income) plus farm income
Capital Gains18%4%
1917 1928 1939 1950 1961 1972 1983 1994 2005
1 9 1 6 - 2 0 0 5 U n i t e d S t a t e s
S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n tI n c o m e S o u r c e s i n c l u d i n g C a p i t a l G a i n s
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Wage Income 34%
Entrepreneurial Income 28%
Dividend Income 11%
Rental Income 3%Interest Income 8%
U.S. Top 0.01 Percent (calculated excluding capital gains)$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 $5.9 millionThe cut off for the Top 0.01 Percent in 2005:
defined as wages and salaries and pensions (and includes bonuses, stock-option exercises, etc.)
defined as profits from S-Cor-porations (entities not subject to corporate taxes and taxed only at the individual level) plus profits from Partnerships plus profits from sole propri-etorship businesses (Schedule C income) plus farm income
Capital Gains 18%
1917 1928 1939 1950 1961 1972 1983 1994 20050
10
20
30
40
50
60
70
80
90
100
World War I World War II
1 9 1 6 - 2 0 0 5 U n i t e d S t a t e s
S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n tI n c o m e S o u r c e s E xc l u d i n g C a p i t a l G a i n s
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Wage Income49%
Entrepreneurial Income36%
Dividend Income7%
Rental Income3%
Interest Income6%
14%
31%
40%
5%
10%
U.S. Top 0.01 Percent (calculated excluding capital gains)$0 $50,000 $100,000 $150,000 $200,000 $250,000
$0 $5.9 millionThe cut off for the Top 0.01 Percent in 2005:
defined as wages and salaries and pensions (and includes bonuses, stock-option exercises, etc.)
defined as profits from S-Corporations (entities not subject to corporate taxes and taxed only at the individual level) plus profits from Partnerships plus profits from sole proprietorship businesses (Schedule C income) plus farm income
1917 1928 1939 1950 1961 1972 1983 1994 2005
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
1929Stock market crash
Great
Depression
Kore
anW
ar
V i et n a m
Wa r
WorldWar II
Iraq War
1973-74Arab oil embargo
1979Iranian oil embargo
1987 Stock market crash Do
t com
stoc
k boo
m& bust
Gulf
War
WorldWar I
Woodrow Wilson
WardenHarding
Calvin Coolidge
HerbertHoover
FranklinRoosevelt
HarryTruman
DwightEisenhower
JohnKennedy
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
CBO Average Household
1 9 1 3 – 2 0 0 5 U n i t e d S t a t e s
I n c o m e
Income 2005 US$
Census Average Family
Census Average Household
Census Median Family
Seaz Average Tax Units with cap gains
Census Median Household
Seaz Average Tax Units without cap gains
BLS GDP per Employed person
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1914 1924 1934 1944 1954 1964 1974 1984 1994 20040
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
1 9 1 3 – 2 0 0 5 U n i t e d S t a t e s
Po p u l a t i o n
Census Family
BLS Employment Seaz Tax Returns
Census Population
Census Household
Dept of Defense Armed Services
Saez Tax Units
BLS Civilian Labor Force
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1914 1934 1954 1974 19940.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
1914 1934 1954 1974 1994
1 9 1 3 – 2 0 0 5 U n i t e d S t a t e s
Po p u l a t i o n R a t i o s
# of people per Tax Unit
# of employed people per Tax Unit
# of people per Household
# of employed people per Household
Pe r Ta x U n i t Pe r H o u s e h o l dSingle, married filling jointly, or head of household All the people who occupy a housing unit as
their usual place of residence
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2 0 0 5 U n i t e d S t a t e s
I n c o m e D i s t r i b u t i o n ( B o t t o m 9 8 % )
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L o g a r i t h m i c S c a l e f o r I n c o m e
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
$100 $1,000 $10,000 $100,000 $250,000
Average (Mean)$63,344
Median$46,326
20% less than$19,178
40% less than$36,000
60% less than$57,660
80% less than$91,705
95% less than$166,000
98% less than$250,000
To t a l 1 1 4 , 3 8 4 , 0 0 0 h o u s e h o l d s
1 9 7 5 - 2 0 0 5 U n i t e d S t a t e s
G r o s s D o m e s t i c P r o d u c t b y I n d u s t r y
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Va l u e A d d e d ; Pe r c e n t a g e o f G D P
Wi n n e r s r a n k e d b y % o f G D P i n 2 0 0 5 L o s e r s r a n k e d b y % o f G D P i n 2 0 0 5
1975 1980 1985 1990 1995 2000 2005 1975 1980 1985 1990 1995 2000 2005
Manufacture12.1
Government12.6
Retail Trade6.6
Whole Sale Trade6.0
Transportation, Warehousing2.8
Utilities2.0
Mining1.9
Agriculture, Forestry, Fishing, Hunting1.0
Finance, Insurance, Real Estate, Leasing
15.1
Professional and Business Services
5.7
Educational Services, Health Care, Social Assistance
4.5
Information3.4
Construction 4.6
Arts, Entertainment, Recreation, Accommodation, Food Services
2.8
Other Services2.3
20.4
11.7
7.8
4.5
4.9
3.6
2.3
20.6
15.1
7.8
7.0
3.6
2.3
2.1
3.1
Woodrow Wilson
WardenHarding
Calvin Coolidge
HerbertHoover
FranklinRoosevelt
HarryTruman
DwightEisenhower
JohnKennedy
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
1 9 1 3 - 2 0 0 6 U n i t e d S t a t e s
R e a l G r o s s N a t i o n a l I n c o m e p e r C a p i t a
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I n 2 0 0 0 U S d o l l a r s
1916 1926 1936 1946 1956 1966 1976 1986 1996 2006$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000$38,2002006 Est
$7,1001929 Great
Depression
Kore
anW
ar
V i et n a m
Wa r
WorldWar II
I raq War
Gulf
War
WorldWar I
1929Stock market crash
1973-74Arab oil embargo
1979Iranian oil embargo
1987 Stock market crash
Dot c
om st
ock b
oom&
bust
LyndonJohnson
Richard Nixon
Gerald Ford
Jimmy Carter
Ronald Reagan
George W. Bush
George Bush
Bill Clinton
1 9 6 4 - 2 0 0 6 U n i t e d S t a t e s
Av e r a g e H o u r l y E a r n i n g s
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o f p r o d u c t i o n a n d n o n s u p e r v i s o r y w o r k e r s
$16.31
$16.31 $16.24
Adjusted for Inflation using PCE Deflator (2005 dollars)
Adjusted for Inflation using CPI-W (2005 dollars)
Adjusted for Inflation using CPI-W (2005 dollars)
$15.49
$12.96
$16.24$16.76
$2.53
$15.49
$12.96Adjusted for Inflation using PCE Deflator (2005 dollars)
Not Adjusted for Inflation (Constant dollars)
1975 Earning plus Benefits $16.952005 Earning plus Benefits $19.57
Recessions: each bar starts at the peak of a business cycle and ends at the trough
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