Distribution of wealth
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In economics, Distribution of wealth refers to the proportion of capital controlled by a given percentage of a population. Typically, a small percentage will control a larger percentage of available capital.
Globally, at the end of the twentieth century, the distribution of wealth is said to be concentrated among the G8 and Western industrialized nations, along with several pockets in Asia.
The political systems of socialism and communism are intended to diminish the perceived conflicts arising from unequal distribution of wealth. They did so by forcing wealthier members of society to surrender some or all of their assets to the majority in a process sometimes called wealth transfer. The State or the people then administer all public assets. Critics of state-managed economies cite the former Soviet Union and The People's Republic of China as examples of countries where, despite aggressive economic regulation, wealth continued to distribute unevenly, often among those in politically powerful positions. (See also: Sociological power, Political corruption
In most countries, attempts are made through taxation, regulation and governmental oversight to at least diminish the natural economic tendency for capital (and therefore effective political power) to accumulate among small groups, often resulting in substantial political debate and controversy.
In the United States, 10% of the population owns 71% of the wealth. Looked at another way, if $100 were divided among 100 people in the same proportions as the wealth in the United States, one person would get $38.10, while at the bottom, 40 people would receive 1/2 cent each.[1]
There are four catagories; Upper Class, Middle Class, Lower Class, and Poverty.
See also
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