Sunday, April 21, 2013

Income and human development

The U.S. welfare state is one of the least extensive in the developed world, reducing both relative poverty and absolute poverty by considerably less than the mean for rich nations,[186][187] though combined private and public social expenditures per capita are relatively high.[188] While the American welfare state effectively reduces poverty among the elderly,[189] it provides relatively little assistance to the young.[190] A 2007 UNICEF study of children's well-being in twenty-one industrialized nations ranked the United States next to last.[191]
Between 1947 and 1979, real median income rose by over 80% for all classes, with the incomes of poor Americans rising faster than those of the rich.[192] However,
income gains since then have been slower, less widely shared, and accompanied by increased economic insecurity.[192][193] Median household income has increased for all classes since 1980,[194] largely owing to more dual-earner households, the closing of the gender pay gap, and longer work hours, but the growth has been strongly tilted toward the very top.[186][192][195]
Consequently, the share of income of the top 1%—21.8% of total reported income in 2005—has more than doubled since 1980,[196] leaving the United States with the greatest income inequality among developed nations.[186][197] The United States has a progressive tax system which equates to higher income earners paying a larger percentage of their income in taxes.[198] The top 1% pays 27.6% of all federal taxes, while the top 10% pays 54.7%.[199]
Wealth, like income and taxes, is highly concentrated: The richest 10% of the adult population possesses 69.8% of the country's household wealth, the second-highest share among developed nations.[200] The top 1% possesses 33.4% of net wealth.[201] In 2011 the United Nations Development Programme ranked the United States 23rd among 139 countries on its inequality-adjusted human development index (IHDI), nineteen places lower than in the standard HDI.[202]

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