Send a Tweet
Most Popular Choices
Share on Facebook 2 Share on Twitter 1 Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

Wealth Over People Curves - A limit to Corruption?

By       Message Joseph Mitchener       (Page 1 of 1 pages)     Permalink    (# of views)   4 comments

Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; ; ; ; ; ; , Add Tags  (less...)
Add to My Group(s)

Must Read 5   Supported 2   Valuable 2  
View Ratings | Rate It

opednews.com Headlined to H2 3/24/18

Author 501126
- Advertisement -

WOP CURVES


(Image by Joseph Mitchener)   Permission   Details   DMCA

WOP is an acronym for "Wealth Over People". WOP curves are modified Distribution of Wealth curves. The vertical and horizontal scales each show percentages from one to one hundred. We imagine all the households in a nation being sorted from richest to poorest. They are then shrunk down and lined up (richest at the left) along the horizontal scale. For any particular household, its point on the curve represents how their wealth compares (as a %) to the average wealth of the richest (0th) percentile. For any nation, the average wealth of the richest 1/100 of households is the topmost point on the curve (People = 0%, Wealth = 100%) or (p=0, w=100) or (0,100).

In the real world two points on the wop curve are always known before any statistics are gathered. These are the topmost point (0,100) by definition, and the rightmost point (poorest people, lowest wealth) or (p=99,w=0) or (99,0). This unfortunate rightmost point is given because there is always at least one percent of households (incarcerated, long-term illness, etc) with no wealth at all. Given that the topmost and rightmost points are fixed... our interest lies in the form of the curve between them.

- Advertisement -

There are two extreme possible forms of the curve. The first is the "Perfect Communist" wop. It is a straight line from the leftmost (maximum wealth) point horizontally across the people scale to p=99, where it drops to wealth = 0. That is, almost all families have the same wealth.

The other extreme is the "Perfect Tyranny" form. It starts on the left at the Tyrant's maximum wealth of 100%. It then immediately drops to zero and continues at zero across the rest of the people. That is, the tyrant and his friends (the top percentile) own all the nation's wealth. All other citizens are serfs or slaves.

An obvious intermediate form is a straight line connecting the left/top point to the right/bottom point. In such a "Diagonal" society a household in the richest percentile would have just twice the wealth of a family in the median (50th) percentile. Such a society is compelling to many (especially the poor).

- Advertisement -

(Image by Joseph Mitchener)   Permission   Details   DMCA

"Gini Values" (a decimal from 0 to 1) are used as a measure of the "disequity" in a particular economy. Gini values may apply to either income or wealth. A wealth Gini of zero correlates with a perfect communist WOP. A Gini of 1.0 correlates with the perfect tyranny WOP. In 2012 the United States had a wealth Gini of .801. Only Switzerland and Denmark had slightly more dis-equitable economies.

Whatever the form of a nation's wop, there is always a "suction" on the curve from the graph origin. This suction tends to pull the curve towards the Pure Tyranny form. The three prime drivers of this suction are: 1) Takes money to make money. If you inherit millions tiz easy to make millions. 2) Whether or not private money is allowed to fund elections... politicians pushing low taxes on the rich and their corporations can and will be bought. 3) Money marries money.


(Image by Joseph Mitchener)   Permission   Details   DMCA

It is apparent that the US wop is far advanced toward the "Pure Tyranny" form. Most US citizens are unaware of wop curves (or even of the concept of the Distribution of Wealth). This ignorance is much appreciated and encouraged by the aristocracy. But those of us who are aware of the increasing dis-equity (see graph at bottom) are distressed by it. However, many of us feel that a diagonal society would not offer the most deserving individuals a sufficient incentive or reward for extreme exertion, or extreme brilliance. The family of such a person would have only twice the wealth of the family of the "average Joe". Our question then becomes, "Is there some other compelling form of the wop between the diagonal and the pure tyrant forms?"

Yes! That intermediate form is the Wagon Wheel WOP. Imagine an old wagon wheel rolled up against the side of a barn. The quarter circle of the wheel between where it touches the ground and where it touches the barn constitute the wop curve that we desire. In such a society the richest one percent have a wealth (on average) that is six and a half times the wealth of the median family.

- Advertisement -

In theory, it would be a simple matter to change the USA's wop from our current (nearly tyrannical) form into the wagon-wheel form. Wealth taxes would have to be imposed. If the objective was to move to the wagon wheel form in ten years, then (for each people percentile) the wealth tax would be adjusted so as to cause it to move to the desired point over that period. However, in any society the aristocracy controls the political process. Therefore it is highly unlikely that any serious movement toward the wagon-wheel form will occur.


(Image by Joseph Mitchener)   Permission   Details   DMCA

Joseph J. Mitchener jackmitchener@gmail.com

PS. The more dis-equitable a nation is, the less likely it is to publish accurate wealth or income data for its top percentile. However nations are much more likely to publish accurate data for their average and median wealth. As it turns out, the median/average (Moa) can be used to find the exponent (Pwr) needed for the equation that gives the WOP curve for that nation. Anyone who can use a spreadsheet can then develop: 1) the WOP values & curve 2) Share of nation's wealth held by the top percent 3) the wealth Gini value. Please see www.Greensuit.org for the needed equations.

 

- Advertisement -

Must Read 5   Supported 2   Valuable 2  
View Ratings | Rate It

opednews.com

Older guy in Black Forest. Taught algebra. Did technical writing, programing. Did factory work, construction. Started the sport of Riverdancing. Came up with a way for children to solve algebra problems in their heads. Website is www.Greensuit.org . (more...)
 

Joseph Mitchener Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Wealth Over People Curves - A limit to Corruption?