Bad Statistics: Median Wealth and Inequality

Several issues:

  1. Median measurements aren’t very sensitive to inequality. Whether Warren Buffet has a billion dollars or ten doesn’t affect the median. He still balances exactly one person lower than the median.
  2. The figure here is wealth, not income. When it comes to income, the US is actually #6. The reason Americans don’t accumulate as much wealth is that our houses are considerably cheaper, probably because many states have looser zoning rules than a lot of the rest of the world. My six bedroom, two stories house in Texas is much cheaper than my mother’s three bedroom apartment in Israel. Does it mean I have less wealth, or does it mean I spend more of my income because I don’t need to spend nearly as much on housing?

h/t Diana Povero

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2 thoughts on “Bad Statistics: Median Wealth and Inequality

  1. Wow! I’m surprised at how low that number is, considering that the boomers should be at the height of their wealth as they are just transitioning into retirement. I guess my wife and I should start talking like Hercule Poirot from now on.

    Liked by 1 person

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