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Chapter 20 - Poverty and the distribution of income. After completing this unit, you should be able to: Describe the distribution of income in the U.S. and the global distribution of income, explain various measures of income inequality, describe various measures of poverty, | Introduction to Economics: Social Issues and Economic Thinking Wendy A. Stock PowerPoint Prepared by Z. Pan Chapter 20 Poverty and the Distribution of Income Copyright © 2013 John Wiley & Sons, Inc. / Photo Credit: Vstock LLC/Getty Images, Inc. 1 Describe the distribution of income in the U.S. and the global distribution of income Explain various measures of income inequality Describe various measures of poverty Summarize the issues surrounding global poverty and inequality Describe some of the primary causes of poverty Describe the impacts of various poverty policies Copyright © 2013 John Wiley & Sons, Inc. 2 After studying this chapter, you should be able to: 2 In 2010, over 43 million of the 328 million people in the United States were living in poverty, the highest level of poverty in over a decade. That same year, 12 of the 25 richest people in the world lived in the U.S. The issue is more serious than we think Copyright © 2013 John Wiley & Sons, Inc. 3 The issue of poverty 3 Copyright © 2013 John Wiley & Sons, Inc. 4 Perception vs. reality and ideality 4 An Income Distribution shows the levels of income in an economy and the percentage of individuals or households earning those income levels. Copyright © 2013 John Wiley & Sons, Inc. 5 Income Distribution 5 Copyright © 2013 John Wiley & Sons, Inc. 6 U.S. Income Distribution 6 Copyright © 2013 John Wiley & Sons, Inc. 7 U.S. Income Distribution 7 Being in the top fifth of households, it takes an average of $171,000 per year in the United States. Being in the top 2 percent of households, it takes $250,000 per year. Copyright © 2013 John Wiley & Sons, Inc. 8 WHAT IS being rich? 8 The share of total income earned by households in the top quintile was 43 percent in 1969 and 50 percent in 2009. Over the same period, the share of income earned by the bottom quintile fell from 4 percent to 3 percent. The share of income earned by those in the second quintile also fell, from 11 to 9 percent. Copyright © 2013 John Wiley | Introduction to Economics: Social Issues and Economic Thinking Wendy A. Stock PowerPoint Prepared by Z. Pan Chapter 20 Poverty and the Distribution of Income Copyright © 2013 John Wiley & Sons, Inc. / Photo Credit: Vstock LLC/Getty Images, Inc. 1 Describe the distribution of income in the U.S. and the global distribution of income Explain various measures of income inequality Describe various measures of poverty Summarize the issues surrounding global poverty and inequality Describe some of the primary causes of poverty Describe the impacts of various poverty policies Copyright © 2013 John Wiley & Sons, Inc. 2 After studying this chapter, you should be able to: 2 In 2010, over 43 million of the 328 million people in the United States were living in poverty, the highest level of poverty in over a decade. That same year, 12 of the 25 richest people in the world lived in the U.S. The issue is more serious than we think Copyright © 2013 John Wiley & Sons, Inc. 3 The issue of poverty 3 .
