B. Household Income distribution by percentile (Figures in 2000 CPI-U-RS adjusted dollars)

Income by Decade					Percent change from previous decade
Percentile	1970	1980	1990	2000	1970	1980	1990	2000	1970 - 2000	Percentile
10th	$7,944	$8,945	$9,376	$10,600		12.6%	4.8%	13.1%	33.4%	10th
20th	$14,425	15,503	16,050	17,955		7.5%	3.5	11.9	24.5	20th
50th	$33,746	35,238	38,446	42,00		4.4%	9.1	9.2	24.5	50th
80th	$56,646	63,075	70,882	81,960		11.3%	12.4	15.6	44.7	80th
90th	$72,251	81,580	95,828	111,602		12.9%	17.5	16.5	54.5	90th
95th	$89,553	102,472	121,654	145,526		14.4%	18.7	19.6	62.5	95th
U.S. Census Bureau has a great deal of interesting data.
This Bureau of Labor Statistics data reports that over the last five years the percentage of young people are working has declined as has their real pay. This has happened even though they are investing more time and money  in education. Data from page 13 of the July 2, 2007 issue of Business Week.
The recovery of the stock market after 9/11 and the most  recent housing boom has household wealth up 40%.
Secondary Source The Big Picture, August 21, 2007						Primary Source: Average Incomes Fell for Most in 2000-05 DAVID CAY JOHNSTON NYT, August 21, 2007 http://www.nytimes.com/2007/08/21/business/21tax.html

II. Analyzing the distribution of income with Lorenz Curves

A Lorenz curve depicts income inequality by plotting the percentage of income (Y) received by different percentages of the population.  A 45-degree line represents perfect equality as 10% of the population receive10% of the income and 35% of the population receive 35%  of the income, etc. Perfect inequality would be close to the x-axis as 99% of the population receive no income.

III. Causes of income inequality       A. Personal endowments differ (mental, physical, and personal abilities)       B. Human capital investments differ (education and training)       C. Job characteristics cause people to accept differing amounts of compensation            (white vs. blue collar, job prestige, job risk)       D. Wealth generates income       E. Market power (unions, associations such as AMA, ABA, and AARP)       F. Discrimination       G. Willingness to assume risk       H. Luck            1. Recently, 2001-2202, (like 1991, and 1980) was not a great time to be               graduating from college and seeking a job.            2 .The worst time was 1929 -1938. My dad graduated from Tufts College in 1933.               He got his first real job in 1937 and because of WWII, he didn't get his first new car until 1947.       I. Power CEOs have the power and no one can stop them. Business Week, February 26, 2007 page 44       J. Equality Denial  from Economist.com takes a different view.

IV. Understanding poverty

      A. 1990 Poverty threshold
          1. Originally set at three times a family's minimum food requirement, it is now adjusted for inflation
          2. $13,359 annually for a family of four
          3. $6,652 annually for a single person
      B. By 2005, the Department of Health and Human Services reported higher thresholds. 

     B. The poverty rate is decreasing.
         1. 32.0% of the population lived in poverty in 1950.
         2. Just over 11% was the poverty rate through the early 1970's.
         3. 15.2% of the population during 1981-82 recession which is the most recent poverty rate peak.
         4. 14.2% of the population (35.7 million people) in 1991 lived in poverty.
         5. Between 1970 and 1990 the percentage of children living in poverty increased from 14.9% to 19.9% with the corresponding
             increases for white, black, and Hispanic children being 10.5% to 15.1%, 41.5% to 44.2%, and NA to 33.9% respectively.

      C. Federal programs to help the poor
          1. Payroll tax programs
              a. Old Age, Survivors, and Disability Health Insurance (social security) pays retirement and disability income
              b. Medicare pays medical costs for social security recipients 
              c. Unemployment Compensation (paid by employers)
         2. Programs financed from general revenues
             a. Supplemental Security Income (elderly and disabled)
             b. Aid to Families with Dependent Children (AFDC)
             c. Food Stamps
             d. Medicaid pays health care costs for the poor

VI. Understanding Poverty in America states that America's poor are not that poor.

John Edward on Poverty in America from UC Berkeley

Robert Reich: How Unequal Can America Get Before We  Snap? from UC Berkeley

VII.  Author's editorial!

       A September 3, 1992 Wall Street Journal editorial by Robert Rector, a policy analyst for the Heritage Foundation in Washington, D.C.,
       reported the following concerning 1990 government spending on poverty:

       "Out of a total of $184 billion in welfare spending..." "...Census counted only $32.5 billion as income."

     This means that the actual income of those living in poverty is substantially understated. It is difficult to lower the number of people
     living on poverty income if much of the money given them does not count as income! Approximate per capita understatement would
     be calculated as follows:

Administrative costs must be subtracted therefore not all of the $4,328.57 per person was given in direct aid.