PowerPoint Exhibit Slides to Accompany Principles of Economics Fred M. Gottheil Chapter 18 INCOME DISTRIBUTION AND POVERTY

EXHIBIT 1 LORENZ CURVES FOR THE COM- MUNITIES OF WASHTENAU, SPRINGFIELD, AND HOLMES Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 2. LORENZ CURVES FOR SWEDEN, FRANCE, EXHIBIT 2 LORENZ CURVES FOR SWEDEN, FRANCE, BRAZIL, AND THE UNITED STATES Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 3 THE GINI COEFFICIENT Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 4. SHARE OF AGGREGATE INCOME EXHIBIT 4 SHARE OF AGGREGATE INCOME RECEIVED BY HOUSEHOLDS, BY QUINTILE AND TOP 5 PERCENT, AND GINI COEFFICIENT: 1970–99 Source: U.S. Bureau of the Census, Money Income in the United States: 1995, Current Population Reports, P60-193 (Washington, D.C.: U.S. Government Printing Office, 1996); and U.S. Bureau of the Census, Money Income in the United States: 1999, Current Population Reports, P60-220 (Washington, D.C.: U.S. Government Printing Office, 1999). Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 5 PERCENTAGE CHANGE IN HOUSEHOLD GINI COEFFICIENT: 1967–99 Source: U.S. Bureau of the Census, Current Population Survey, March 1999. Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 6. INCOME DISTRIBUTION IN THE MID-1980s, EXHIBIT 6 INCOME DISTRIBUTION IN THE MID-1980s, SELECTED COUNTRIES, BY QUINTILE Source: European Economy: 1996 Broad Economic Policy Guidelines, no. 62 (Brussels, 1996), and World Development Report, 1996 (Washington, D.C.: World Bank, 1996). Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 7 INCOME DISTRIBUTION IN LESS-DEVELOPED ECONOMIES, BY QUINTILE Source: World Development Report, 1996 (Washington, D.C.: World Bank, 1996). The footnote to the table in the report reads: “These estimates should be treated with caution.” Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 8 DISTRIBUTION OF NET WEALTH OF U.S. FAMILIES (1774 AND 1973) Source: Jones, A. H., Wealth of a Nation to Be—The American Colonies on the Eve of Revolution (New York: Columbia University Press, 1980); and Greenwood, D., “An Estimation of U.S. Family Wealth and Its Distribution from Macro Data, 1973,” The Review of Income and Wealth, Series 29, I, March 1983, pp. 23–44. Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 9 EQUALITY AND MAXIMUM UTILITY Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 10 EFFECT OF INEQUALITY ON NATIONAL INCOME Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 11 INEQUALITY AND ECONOMIC GROWTH Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 12. PERCENTAGE OF PERSONS BELOW THE EXHIBIT 12 PERCENTAGE OF PERSONS BELOW THE POVERTY LEVEL, BY RACE, 1960-97 NA = not available * Refers to data for 1959 Source: Bureau of the Census, Statistical Abstract of the United States, 1999 (Washington, D.C.; Department of Commerce, 1999), p. 483. Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 13 FAMILIES IN POVERTY, BY SELECTED CHARACTERISTICS: 1997 * Refers to 1992 † Refers to 1994 Source: Statistical Abstract of the United States, 1999 (Washington, D.C.: Department of Commerce, 1999), p. 484. Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 14. CASH AND NONCASH BENEFITS FOR EXHIBIT 14 CASH AND NONCASH BENEFITS FOR PERSONS WITH LIMITED INCOME: 1996 Source: Statistical Abstract of the United States, 1999 (Washington, D.C.: Department of Commerce, 1999), p. 389. Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 15. POPULATION BELOW 50 PERCENT OF EXHIBIT 15 POPULATION BELOW 50 PERCENT OF MEDIAN INCOME (LATEST OECD DATA) Source: OECD Economic Surveys, Germany, 1996 (Paris: OECD, 1996), P. 90. Chapter 18 Income Distribution and Poverty © 2001 South-Western

EXHIBIT 16 THE NEGATIVE INCOME TAX APPLIED (TAX = 50%) Chapter 18 Income Distribution and Poverty © 2001 South-Western