Most Americans do not grasp income inequality or its implications because they do not do the math.
To explain, America’s richest man is Amazon CEO Jeff Bezos who had $137 billion before his divorce, Fortune estimates. Meanwhile, the average income for the average person in the United States was $31,099 a year in 2016.
Specifically, the Federal Reserve Bank of St. Louis estimates the 2016 Real Median Personal Income in the United States at $31,099. In addition, the St. Louis Fed estimates the Real Median Household Income at $61,372 a year in 2016.
Hence, the average American makes $100,000 less than 0.0001% of Bezos’ personal fortune. Note, by my calculations, 0.0001% of $136 billion is $136,000.
Income Inequality explained
Therefore, Bezos could buy the average American thousands of times and still have plenty of cash in the bank. Moreover, Business Insider estimates Bezos makes more money in one minute than the average person does in a year.
Nor is it just Bezos, Presidential candidate’ and income inequality critic, US Senator Liz Warren (D-Massachusetts) admits to making $900,000 in 2018, CNBC reports. Hence, Warren’s income is nearly 30 times greater than that of the average American. However, Bezos’ income is over 136,000 times greater than Warren’s.
Therefore, math exposes just how great income inequality is. Americans need to pay attention to the math, if they want to understand what is wrong with their economy.