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Incredible Chart Shows Why Talking About The Rise Of The 'Wealthiest 1%' Is Totally Flawed

Mar 30, 2014, 06:23 IST

In recent years, as income and wealth inequality have grown as matters of concern, the term "1%" has become a popular way to connote the the rise of a super-elite that's separated itself economically from the rest of society.

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We've all seen the charts showing, in various ways, how much the 1% has seen its wealth grow, while everyone else's has stagnated.

But talking about the 1% actually misses the real story.

New research from economists Emmanuel Saez and Gabriel Zucman (.pdf), via HouseOfDebt, shows that really it's only the 0.1% that's seen its share of the wealth surge.

Here's what happens if you decompose the % of total wealth held by the top 1% in the United States.

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Saez and Zucman

So basically, if you're a poor schmo whose wealth is in the top 1% but not above the top 0.5%, you haven't seen gains at all. And same mostly for people between 0.5% and 0.1%. It's really only above that where the outsize gains have accrued. And really, it's only the top 0.01% of the wealthiest individuals that have seen the ridiculous gains everyone talks about.

Check out the full presentation from Saez and Zucman here >

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