due 9th

Written Assignment II: Income Inequality in the United States

Part I: Find and Analyze Data What is the Lorenz curve? Answer Here

Go to this website and find the data needed to complete the table below.

http://data.worldbank.org/indicator

Scroll down to the section labeled “Poverty” and you will see links for “Income Shares held by the lowest 20%”, “Income Shares held by the second 20%” and so on.

Click on one of these quintiles. Scroll down until you get the United States. Click on “United States”. Find the value for 2010 by hovering over the dot on the graph for 2010. Record the data in the table below. Repeat for each quintile.

Income Shares in 2010 in the United States

Lowest 20%

Second Lowest 20%

Third 20% Fourth 20%

Highest 20%

Use the data from the table above to construct a Lorenz curve. Paste your curve into the box on the right. If you are unable to construct a graph with software then draw your graph by hand, snap a photo, and upload your photo to this assignment.

Lorenz Curve Graph

The Gini Coefficient measures the area between the line of perfect equality and the actual Lorenz curve. The further the Lorenz curve from perfect equality the larger the area and the higher the Gini Coefficient will be. Create a graph of measured Gini Coefficients for the United States over time.

1. Go to this website:

http://research.stlouisfed.org/fred2/

2. Type “income gini ratio” into the search box then select the first data series:

3. Take a screenshot of you graph and paste into the box below. Insert Graph Here

Describe what has happened to the value of the Gini Coefficient since 1980?

Answer Here

What is the implication for income inequality over this period?

Answer Here

Part II: Compare Points of View

Read and summarize the following articles then compare the authors points of view. Please note that you may need to create a user profile to access the “Project Syndicate” article. This website is free but requires a user name and password. Article 1: “The Price of Inequality” by Joseph Stiglitz

https://www.project-syndicate.org/ commentary/the-price-of-inequality

Article 2: “Has Rising Inequality Actually Hurt Anyone” by Scott Winship

http://blogs.reuters.com/great-debate/ 2012/10/18/has-rising-inequality-actually- hurt-anyone/

Summarize Article 1 Here Summarize Article 2 Here

According to the author of article 1 what are the causes of income inequality?

According to the author of article 2 what are the causes of income inequality?

Answer Here Answer Here

According to the author of Article 1, what are the consequences of income inequality?

According to the author of Article 2, what are the consequences of income inequality?

Answer Here Answer Here

According to the author of Article 1, what if anything should be done about income inequality?

According to the author of Article 2, what if anything should be done about income inequality?

Answer Here Answer Here

Which author do you most agree with and why?

Answer Here