Nation of Beancounters

Inequality would exist in a society with equal incomes

Posted in Uncategorized by Navin Kumar on August 25, 2011

Says the maths:

To examine how much inequality you would get even in a perfectly equal society, I whipped up a simple Python script to compute wealth distribution in a society where every person works for the exact same salary (this should be enough equality for anybody, yes?) of which he saves the exact same amount. For a 5% annual interest rate, the five wealth quintiles controlled 2, 7, 15, 28, and 47 percent of total wealth, respectively. For 10%, these quintiles controlled 0, 4, 10, 25 and 60 percent of wealth.

It’s incredible but now that I think of it, I can’t recall any inequality studies adjusting for age.

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  1. […] via Inequality would exist in a society with equal incomes « Nation of Beancounters. […]


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