Are incomes distributed equally in the United States?
No. In a market system, income is derived from the ownership of resources: people with more resources, or with more highly valued resources, receive higher incomes. Doctors are more highly paid than ditch diggers; people who have accumulated lots of capital receive more interest than people without any savings. In the United States, the top 20 percent of the population earns over 44 percent of the total national income, and the bottom 20 percent of the population earns less than 5 percent of the national income. A Lorenz curve shows the degree to which income is distributed equally (or unequally) within a society. If all incomes are the same, the Lorenz curve is a straight line; the more unequally distributed incomes are, the more bowed the Lorenz curve becomes. Lorenz curves provide an easy way to compare income distributions across countries or within the same country at different times. • How is poverty measured, and does poverty exist in the United States? Poverty can be measured i
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