Your Place in Society

The following is based on the work of Thomas Piketty in “Capital in the 21st Century”.

  • 30,000 € : Average income (2010 values)
  • 180,000€ € : Average Private Wealth (6 times the income)

This private wealth is made up of equal parts real estate and financial instruments

  • 90,000 € Real Estate
  • 90,000 € Financial Instruments (stocks, bonds, savings, or other investments)

Return on capital is typically on the order of 5%/year over the long run.

  • 9,000 € return on 180,000€ capital

⇒ 30% of income is derived from

The above “average citizen” of course does not exist.

In terms of private wealth, the following sections of the wealth distribution:

  • 0%-50% - owns almost nothing (average 20k€) - lower class
  • 50%-90% - own ~ - Middle Class
  • 90%-100% - own 60% of total wealth ⇒ 6xAverage wealth = ~1'€ - Upper Class

The division inside this top 10% is however even more dramatic:

  • 90%-99% - own ??(~15% of )
  • 99%-100% - own ….??~4'€ (25x average wealth) 1)

In terms of income:

Income is 30% from

10000 € own furniture, refrigerators, cars, etc.. (1/3 of yearly income)

1)
Note piketty text varies between 180k and 200k€ as average wealth..
calculate/your.place.in.society.txt · Last modified: 2019/09/09 23:42 (external edit)
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