Thursday, December 1, 2011

Referenced Facts; Commentary To Come Later

Referenced Facts:

For every $1 earned by the average American worker, the CEO of that firm is compensated $475.  This fact pales incomparison to CEO pay in other countries.  Let's put this in perspective, shall we?  Suppose you make $10/hr and you are an average wage earner at your firm (making roughly $20,800 / year).  For the $10 / hr you make, the CEO of YOUR FIRM makes $4750/hr.  Imagine that:  $4750 per HOUR of work; plus a corporate jet and the ear of every investment banker on Wall Street that would woo you with a 5-star meal and take you to and from the airport in a corporate limo.
http://creativeconflictwisdom.wordpress.com/2011/10/07/ration-of-ceo-pay-to-average-worker-by-country/

Only 19% of the income reported by the 13,480 individuals or families making over $10 million came from wages and salaries.  Perspective:  Even if you earned $9,999,999.00 last year, the people that made one DOLLAR more are only one tenth of a percent and control 85% of the wealth in the country and only 1 in 5 can attribute their income to actual production.
http://www2.ucsc.edu/whorulesamerica/power/wealth.html

http://www.nytimes.com/2010/07/24/business/economy/24charts.html?adxnnl=1&adxnnlx=1322766425-Cx8flOh5USsnnQL8dzLpmQ

Over the period 2004 - 2008, nearly 15% of elected Washington officials saw an average net worth increase of over 450%.  (Note:  This is an arithmetic mean with a high variance, but is still quite revealing). 
http://governmentgonewild.org/thelist

About 47% of Congresspersons are millionaires.
http://www.opposingviews.com/i/money/personal-finance/47-congress-are-millionaires-just-1-rest-us

90% + of over 5,000 Americans polled believe the top 20% has about 60% of the wealth when in fact the top 20% control about 85% of the wealth.
http://www2.ucsc.edu/whorulesamerica/power/wealth.html
Norton, M. I., & Ariely, D. (2010, forthcoming). Building a better America - one wealth quintile at a time. Perspectives on Psychological Science.

As of 2012, only the first $110,100 of taxable income is subject to Social Security taxation.  Prior to 2012, the cap was around the first $106,000.  This means all taxable income generated above $110,100 is exempt from FICA taxation.

(A little more complex notion)  If there were only 100 wealth holders in the US and one were to calculate a Herfandahl - Hirschman Index (HHI) for the top 20, the result would be a staggering 7,225 on a scale of 10,000.  To put this in perspective, the Federal Trade Commission deems markets where the 50 largest firms have an HHI of 2,500 or higher as "Highly Concentrated."  M Waggy, 2011.  For more insight see:


More to come.....this is just an appetizer...

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