Friday, August 14, 2009
Let's make this intuitive. Suppose we had $10,000 to distribute to 10,000 people. The current inequality means that 1 (one) person would receive $600. The top ten percent (10%) or 1000 people would receive about half the money ($4970 to be precise). The remaining 90% would receive the other half. So the remaining $5000 would be split among 9000 people. So one person would get $600 while 9000 would have to make do with about 55 CENTS each. (Of course the distribution for the 90% is not linear, so in fact the poorest 20 percent probably have to make do with something like 10 cents each).
Read the Article at HuffingtonPost
Posted by Hugh Sansom at 11:58 AM