THE RICH The FACTS
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Tight Budgets
Distribution of household income is the easiest measure of inequality. The table shows the percentage share of total income taken by the wealthiest and the poorest groups in each country. In the US the richest 20 per cent get 10 times as much as the poorest, in Brazil they get more than 30 times as much.
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Industralised Countries
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Poorest 20%
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Wealthiest
20%
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Netherlands
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(1977)
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8.1
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37.0
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Sweden
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(1979)
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7.2
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37.2
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Norway
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(1970)
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6.3
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37.3
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United Kingdom
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(1979)
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7.3
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39.2
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Australia
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(1966-67)
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6.6
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38.8
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Japan
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(1969)
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7.9
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41.0
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Spain
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(1974)
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6.0
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42.2
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Italy
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(1977)
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6.2
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43.9
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Germany Fed. Rep.
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(1974)
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6.9
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44.8
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Canada
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(1982)
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4.5
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42.7
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United States
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(1972)
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4.5
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42.8
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France
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(1975)
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5.3
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45.8
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Source: World Bank, World Development Report, 1983
Developing Countries
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Poorest
20%
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Wealthiest 20%
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Bangladesh
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(1973-74)
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6.9
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42.2
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Sri Lanka
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(1969-70)
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7.5
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43.4
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Korea, Rep. of
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(1976)
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5.7
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45.3
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Malawi
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(1967-68)
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10.4
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50.6
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Hong-Kong
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(1980)
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5.4
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47.0
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India
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(1975-76)
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7.0
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49.4
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Indonesia
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(1976)
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6.6
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49.4
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Tanzania
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(1969)
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5.8
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50.4
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Trinidad Et Tobago
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(1975-76)
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4.2
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50.0
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Argentina
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(1970)
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4.4
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50.3
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Chile
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(1968)
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4.4
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51.4
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Philippines
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(1970-71)
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5.2
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54.0
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Venezuela
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(1970)
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3.0
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54.0
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Malaysia
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(1973)
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3.5
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56.1
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Turkey
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(1973)
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3.5
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56.5
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Nepal
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(1976-77)
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4.6
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59.2
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Kenya
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(1974)
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2.6
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60.4
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Peru
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(1972)
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1.9
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61.0
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Panama
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(1970)
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2.0
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61.8
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Mexico
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(1977)
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2.9
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57.7
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Brazil
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(1972)
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2.0
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66.6
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Taking their Share
Apart from being the major ingredient of personal wealth, company shares also give the rich a firm grip on our national economies, and power over the working lives of millions.
UK Richest 10% own 89% of shares
US Richest 1% own 57% of shares
Source: Royal Commission on Income and Wealth, and US Congress.
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The Right Ingredients
The rich do not simply have more of everything; they have more of particular things - especially land and company shares. These are the main components of wealth at different levels:
‘POOR MAN’ Total wealth $10,000
Homes 23%
Life assurance 22%
Savings accounts 10%
Other assets 45%
‘RICH MAN’ Total wealth $400,000
Homes 12%
Land 19%
Company
shares 34%
Other assets 35%
Figures for UK, from Royal Commission on Income and Wealth, 1979
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Fruits of the Earth
Land is the ultimate resource for the owner controls everything and everyone on it. Almost everywhere it is a bastion of wealth. In the Third World land tenure is the main indicator of economic inequality.
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Worth a Million
In the US in 1980 there were 4,112 people who declared an income of more than $1 million for the year. Among them are the world’s highest paid corporate executives, who get salaries (excluding fringe benefits) of over a million dollars a year.
The Boss
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Annual Salary
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Union Oil
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$1,541,000
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ITT
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$1,136,000
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Revlon
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$1,133,000
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Intemational Harvester
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$1,034,000
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United Technologies
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$1,025,000
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Mobil Oil
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$1,022,000
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Suggestions on how to help spend that $1 million a year.
Rolls Royce - $90,000
Yacht - $250,000
Mink Coat - $15,000
House in the Bahamas $1 ‘million
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