Wednesday, November 30, 2011

The top 0.1%

A lot of attention has been garnered towards the top 1% lately. But if we look at the top .1% of income earners, we could find many reasons why there is such a income disparity. According to the article, the top .1% of earners accounts for half of the capital gains on the sale of shares or property after 1 year. Capital gains are a good way to earn additional money, but first you need extra cash to invest. Obviously, the average American does not have much cash lying around especially during these times. Unlike the average American, the rich have plenty of money that could be used to further increase their wealth. Also, the introduction of hedge funds and private equity allowed the rich to cause an even greater gap in income distribution. As a result, the gap between the rich and poor will grow even wider throughout our lifetimes.

http://news.yahoo.com/top-0-1-nation-earn-half-capital-gains-172647859.html

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