Graphic on economic inequality: L-Curve

See this graphic showing income distribution in the US as an L-Curve
It depicts the distribution of family income across the population along the length of a football field, with median income represented as a stack of $100 bills 1.6″ high in the middle, the family income at the 95% line as a 4″ high stack, a foot high at the the 99 percentile line ($300k), and at the end a stack of bills a kilometer high representing the several hundred billionaires in the US  — and finally Bill Gates’ income represented as a stack over 30 miles high.

Author David Chandler uses it in part to challenge the idea of a meaningful “middle class”, suggesting those professionals with incomes over $100,000 are in one sense rich, but have more in common with the rest of those on the largely horizontal line than those few on the vertical line nearly a mile above them.

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One Response to Graphic on economic inequality: L-Curve

  1. C.G.VENKATARAMANAN says:

    The L-curve is obtained by differentiating the Lorenz’s curve and hence is real. Gini coefficient, which is an important parameter of the Lorenz’s curve needs to be regulated if jobs are to be preserved. It can be done by giving tax incentives for large employers like GM, GE, etc., when their Gini of operations is lower than the national figure of Gini Coefficient.

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