Ok, I see where your source went wrong. Par for the course for Investopedia, which tends to get a lot of little details wrong (and sometimes misses the mark on the applicable scope of data that someone else has reported). But they’ve cited the Economic Policy Institute study of 2021 incomes, which looks at the average (mean) earnings within that group, rather than the actual amount that represents the boundary of that group. So it’s not that it takes $3.1 million to be in the top 0.1%, it’s that all the people of the top 1% average out to $3.1 million per year. Which, for the type of power distribution for household or individual incomes, is skewed heavily by the people who have the highest amounts.
And looking at the mean within that group can be fine, for certain purposes, but they’ve gone with the incorrect headline of saying “how much income puts you in the top 10%, 5%, 1%, 0.1%?” So it’s a headline that is wrong, that reports on a different number within the data.
And your own comment, saying that reaching each percentile “starts at” the reported number, is also wrong.
Because holy shit does “dqydj.com” look sketchy as fuck.
It just stands for “don’t quit your day job” and I’ve found that it’s a reliable resource for statistical data that’s widely available (like the ASEC numbers published by the Census Bureau and left to other people to actual turn into data visualization). It’s up to date, and the data matches the summary report on the Census website, so what’s the problem? The summary only reports the 90th and 95th percentiles, though, so I needed to find someone who actually reported on the thresholds for 99 (and not the averages within the top 1%).
https://www.investopedia.com/personal-finance/how-much-income-puts-you-top-1-5-10/
Because holy shit does “dqydj.com” look sketchy as fuck. The fact you clicked on a URL called that has me worried for your safety.
Like skipping through a minefield
Ok, I see where your source went wrong. Par for the course for Investopedia, which tends to get a lot of little details wrong (and sometimes misses the mark on the applicable scope of data that someone else has reported). But they’ve cited the Economic Policy Institute study of 2021 incomes, which looks at the average (mean) earnings within that group, rather than the actual amount that represents the boundary of that group. So it’s not that it takes $3.1 million to be in the top 0.1%, it’s that all the people of the top 1% average out to $3.1 million per year. Which, for the type of power distribution for household or individual incomes, is skewed heavily by the people who have the highest amounts.
And looking at the mean within that group can be fine, for certain purposes, but they’ve gone with the incorrect headline of saying “how much income puts you in the top 10%, 5%, 1%, 0.1%?” So it’s a headline that is wrong, that reports on a different number within the data.
And your own comment, saying that reaching each percentile “starts at” the reported number, is also wrong.
It just stands for “don’t quit your day job” and I’ve found that it’s a reliable resource for statistical data that’s widely available (like the ASEC numbers published by the Census Bureau and left to other people to actual turn into data visualization). It’s up to date, and the data matches the summary report on the Census website, so what’s the problem? The summary only reports the 90th and 95th percentiles, though, so I needed to find someone who actually reported on the thresholds for 99 (and not the averages within the top 1%).
TIL - Thanks for the context on dqydj.com
Cause that would’ve been a straight “report spam” if I got an email from them.