In the context of income inequality in the USA, what percentage of total wealth is owned by the bottom 50% of families (those with less than \$122,000 in net worth)?

• A. About 25%
• B. About 10%
• C. About 50%
• D. About 2%

Answer: (D)

Verified step by step guidance

1. Understand the context: The problem asks about the share of total wealth owned by the bottom 50% of families in the USA, specifically those with net worth less than \$122,000.
2. Recall the concept of wealth distribution: Wealth is often distributed very unevenly, with a small percentage of families owning a large portion of total wealth, and a large percentage owning a small portion.
3. Identify the relevant data: According to studies on wealth inequality, the bottom 50% of families typically own a very small fraction of total wealth, often much less than their population share.
4. Compare the given options: The choices are 25%, 10%, 50%, and 2%. Given the known high concentration of wealth at the top, the bottom 50% owning about 2% aligns with empirical data on wealth inequality in the USA.
5. Conclude that the bottom 50% of families own approximately 2% of total wealth, reflecting significant wealth inequality.