Income Inequality: The Big Picture and Little Details
by Margaret Manalo
Published: February 10th
1. How broad of a threat does income inequality pose?
2. 69% of income for middle-class families comes from wages and salaries. How much income comes from wages and salaries for the top 1% of households?
3. From a wealth perspective, for every dollar of wealth held by white families, how much do black families hold?
A. 75 cents
B. 50 cents
C. 30 cents
D. 13 cents
4. Concerning wealth based on home ownership, what portion of total wealth of White families is tied up in their house vs. Black and Latino families?
A. White families, one third, Black and Latino families, two thirds
B. White families, one quarter, Black and Latino families, one half
C. White families, one fourth, Black and Latino families, three fourths
5. In 1966, Dr. Martin Luther King, Jr. stated, "Of all the forms of inequality, injustice in health care is the most shocking and inhumane."
6. How many people in the United States will be denied healthcare, due to half the states rejecting the expansion of Medicaid?
A. 5 million
B. 4 million
C. 3 million
D. 2 million
7. Black and Latinos will be disproportionally affected by states' decisions not to expand Medicaid. What are the percentages?
A. 17% of Blacks and 11% of Latinos to 37% of Whites
B. 27% of Blacks and 21% of Latinos to 47% of Whites
C. 37% of Blacks and 31% of Latinos to 57% of Whites
D. 47% of Blacks and 41% of Latinos to 67% of Whites
1. [D] The World Economic Forum states that the gap of income inequality between the rich and the poor “poses the most likely threat to the global economy.” Their survey consisting of 700 academics and executives led to an assessment of 31 risks to global prosperity. Source: http://www.bloomberg.com/
2. [B] 36.8%. The top 1% depends less on wages and salaries because they have income from other sources such as capital gains from investments. Investopedia defines capital gain as “an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.” The top 1% also enjoys the advantage that the tax rates are lower for their unearned income, whereas earned income is taxed at higher rates. Thus, middle class households may pay more taxes on their wages and salaries than the top 1% pay on capital gains and other similar sources of income. Sources: http://faireconomy.org/infographics http://www.investopedia.com/terms/c/capitalgain.asp
3. [D]13 cents. United for a Fair Economy (UFE) calculated, based on the median household wealth in 2010, that Black families were accumulating only 13 cents for every dollar of wealth accumulated by white families. Today, Whites enjoy an average net worth that is 6 times greater than that of Blacks and Latinos. What explains this wealth divide? UFE contends that it is the historical impact of prejudice and discrimination stemming from the policies of slavery and oppression that exclude people of color from the opportunities that build wealth.
4. [B]For White families, one quarter of their total wealth is tied to their house; for Black and Latino families, one half of their total wealth is tied to their house. Policies have encouraged home ownership, which Blacks and Latinos have taken advantage of to their benefit. When the housing market crashed, however, the value of that asset declined - Blacks lost 27% of their assets and Latinos lost 43%, while Whites lost only 7% because their assets were distributed. The result is less financial security for Blacks and Latinos, making it more difficult to withstand future economic downturns. Source: http://faireconomy.org/infographics
5. [A]A. Partially true. Many have proudly quoted Dr. King’s influential statement at a Convention of the Medical Committee for Human Rights held in Chicago on March 25, 1966, such as Miami Healthy Living examiner Jeannie Stokowski-Bisanti. She utilized his words in her article “Martin Luther King on ‘shocking and inhumane’ injustice in health care.” However, investigation for details to the origin of this profound quotation led to the sleuthing of Huffington Post writer, Amanda Moore, a staff attorney-legal editor. Her article, “Tracking Down Martin Luther King, Jr.’s Words on Health Care” reveals that Dr. King did not say the quote verbatim. Moore interviewed Dr. Quentin Young of Chicago, who was chair of the Medical Committee for Human Rights in 1966 and present at the speech. Dr. Young “noted that Dr. King actually called injustice in health care ‘inhuman,’” which is an adjective stronger than the misquoted “inhumane” since Dr. King “was speaking spontaneously at the time.” Despite this slight error in quotation, Dr. King’s words prove their impact, remaining impactful and memorable to this day. Sources: http://faireconomy.org/infographics
6. [A] 5 million people will be denied healthcare as a result of half the states refusing to expand Medicaid. The majority of these states are in the South, which includes what is known as the "Black Belt," a region that extends from Virginia to Louisiana populated with the largest Black communities in the country. One out of every five people affected by this decision lives in Texas, a state in which Latinos make up 38% of the state's population. Source: http://faireconomy.org/infographics
7. [B] 27% of Blacks and 21% of Latinos will be affected by states' decisions not to expand Medicaid while 47% of Whites will be affected. Blacks and Latinos, however, make up smaller percentages of the population, 13% and 15% respectively than Whites (65%) according to United for a Fair Economy (UFE). Therefore, the impact of states' not expanding Medicaid for these groups is disproportionate to their size of the population: more than 2 to 1 for Blacks, 1.4 to 1 for Latinos, but only .7 to 1 for Whites. Source: http://faireconomy.org/infographics