Sunday, October 16, 2011

HOW STATISTICIANS CAN CAUSE REVOLUTIONS with their pie charts and graphs !!!

1) Have you noticed what the latest revolutionaries are calling themselves? They are calling themselves the "99 percenters" and their slogan is "We are 99%". This is because they have seen some pie charts or graphs which show the top 1% making disproporationate gains.
See link:
2) And who made these charts? Researchers and Statisticians :)

Put (1) & (2) together. Combine that with fast communication via Twitter, facebook, Cell phones, SMS, blogs. What is the inference? Statisticians can cause revolutions !!! You get a POTENT MIX!

Here is an amazing article that you must read, from the link below:

Amazing Charts Show How "90% Of USA has been Screwed Over The Past 30 Years"...

By: Henry Blodget
The Economic Policy Institute has put together an amazing interactive chart that shows the growth of incomes in the US over the past 90 years--broken down by who the gains went to.
(Thanks to Barry Ritholtz, for alerting us to this and for running some numbers himself.)

By adjusting the sliders on the chart, you can break down the period into different eras, which show startlingly different trends.

Basically, the charts show that, starting in the early 1980s, a 60-year trend changed, and most of the country's wealth gains started going to the top 10% of the population. In other words, the charts show how 90% of the country has gotten shafted over the past 30 years, and especially over the past 10.

Over the entire period, the picture looks okay (okay--not great): Average U.S. incomes grew by $38,000, adjusted for inflation. About half of these gains went to the richest 10% of the country. The other half went to the other 90%.

But when we break down the last 90 years into different eras, the picture looks quite different.
Over the first three-quarters of the period, from 1917-1981, the trend was better: Average incomes rose by $26,000. The richest 10% captured 31% of that growth, and the other 90% captured 59%. (Click for larger)

But then we come to the last 30 years.
Over the past three decades, the picture changes--radically. From 1981-2008, average incomes grew by a healthy $12,000. But a shocking 96% of that growth went to the richest 10% of the country. Only 4% of it went to the other 90%

And then there's the last 10 years...
From 1997-2008, average incomes grew by $2,700. All of these gains went to the richest 10%. The incomes of the other 90% declined.

That's worth saying again:
In the past 30 years, 96% of the growth of average incomes in this country have gone to the richest 10% of the country. And in the past 10 years, the incomes of the other 90% have declined.
The next question, of course, is what has caused the shift of the past 30 years, as well as what can be done to reverse it. The cause is likely a number of factors, from globalization (the entry of 3 billion low-cost laborers into the workforce) to tax policy to technology. And there's no easy and quick solution.
But you'd certainly have to be a member of the top 10% to think that the trend over the past 30 years is okay. You'd also have to be pretty short-sighted. Because if that trend continues, and if you're in the top 10% because you own or work for a company that serves the other 90%, demand for your products will soon be going down.

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