Household Income Distribution in the U.S. Visualized as 100 Homes
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Inequality

Household Income Distribution in the U.S. Visualized as 100 Homes

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100 homes household income

Household Income in the U.S. Visualized as 100 Homes

View the high resolution version of today’s graphic by clicking here.

Inequality in America has become a major talking point in recent years. For many people though, the concept of inequality – the idea that wealth is spread very thinly at the lower end of the socioeconomic ladder – is still an abstract concept.

There are over 125 million households in the United States, each with their own unique structure and financial situation, so understanding such a complex issue requires reducing it to proportions we can understand.

American Households as a Neighborhood

In the visualization above, American households are distilled down into 100 homes, then color-coded into $25,000 income increments.

One house is allocated for those making $300,000 and more per year. On the other end of the scale, we can see that 24 of the households earn $25,000 per year or less, and nearly half of the households have an annual income lower than $50,000.

Here is a more granular breakdown of numbers, this time from a slightly different data source (U.S. Census Bureau’s 2017 Household Income Survey):

Income BracketHouseholds (Millions)Share of Total
Less than $15,00014.111.2%
$15,000 - $24,99912.19.6%
$25,000 - $34,99911.99.4%
$35,000 - $49,99916.312.9%
$50,000 - $74,99921.517.0%
$75,000 - $99,99915.512.3%
$100,000 - $149,99917.814.1%
$150,000 - $199,9998.36.6%
$200,000 and up8.87.0%

Households between $35,000 and $100,000 are generally considered middle class. That said, the geographical location of where a household is located also makes a big difference.

The Power of Place

Not surprisingly, cost of living strongly influences your household’s place on the income spectrum.

In El Paso, Texas, a $50,000 income places a household of four people in the middle class. However, in a more expensive metro area, like San Diego, that same income lands your household in a lower income tier. Here’s a closer look at the cost of typical expenses in the two metros:

ExpenseEl Paso, TXSan Diego, CACost difference
Home price$239,285.67$755,273.67⬆︎ 216%
Apartment rent$945.92$1,961.55⬆︎ 107%
Energy cost$133.53$213.96⬆︎ 60%
Dentist visit$89.08$104.25⬆︎ 17%
Coffee$4.47$5.39⬆︎ 20%
Hamburger$3.56$4.35⬆︎ 22%
Gasoline$2.31$3.31⬆︎ 44%

Source: Bankrate.com

Mixed Messages

The median household income in the U.S. continues setting new monthly records, and we’ve just seen this decade’s largest year-over-year increase in individual wages.

One side effect of this economic growth is that households in the top wage bracket – the well-appointed yellow square in our visualization – have a tendency to reap outsized rewards. So, for now, as America’s economy trends upward, so does its Gini Coefficient.

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Misc

Mapped: The World’s Biggest Private Tax Havens

What countries or territories do the ultra-wealthy use as tax havens?

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Biggest Tax Havens Share

The World’s Biggest Private Tax Havens

When the world’s ultra-wealthy look for tax havens to shield income and wealth from their domestic governments, where do they turn?

If you’re putting money in offshore bank accounts in order to save on taxes, there are two main criteria you’re looking for: secrecy and accessibility. Based on pop culture and media reports, you might imagine a secretive bank in Switzerland or a tiny island nation in the Caribbean.

And though there is some truth to that logic, the reality is that the world’s biggest tax havens are spread all over the world. Some of them are small nations as expected, but others are major economic powers that might be surprising.

Here are the world’s top 20 tax havens, as ranked by the 2020 Financial Secrecy Index (FSI) by the English NGO Tax Justice Network.

Which Countries are the Biggest Tax Havens?

The FSI ranks countries and territories from all over the world on two criteria: secrecy and scale.

  • Secrecy Score: How well the jurisdiction’s banking system can hide money. This includes analysis of ownership registration, legal entity transparency, tax and financial regulations, and cooperation with international standards.
  • Global Scale Weight: What is the jurisdiction’s share of the world’s total cross-border financial services? This metric is based primarily on the IMF’s Balance of Payments statistics.

By weighing a country’s ability to hide money by its relative share of offshore financial services, we see the tax havens with the biggest impact on the global economy.

RankJurisdictionRegion
1🇰🇾 Cayman IslandsCaribbean
2🇺🇸 United StatesNorth America
3🇨🇭 SwitzerlandEurope
4🇭🇰 Hong KongEast Asia
5🇸🇬 SingaporeSoutheast Asia
6🇱🇺 LuxembourgEurope
7🇯🇵 JapanEast Asia
8🇳🇱 NetherlandsEurope
9🇻🇬 British Virgin IslandsCaribbean
10🇦🇪 United Arab EmiratesMiddle East
11🇬🇬 GuernseyEurope
12🇬🇧 United KingdomEurope
13🇹🇼 TaiwanEast Asia
14🇩🇪 GermanyEurope
15🇵🇦 PanamaCaribbean
16🇯🇪 JerseyEurope
17🇹🇭 ThailandSoutheast Asia
18🇲🇹 MaltaEurope
19🇨🇦 CanadaNorth America
20🇶🇦 QatarMiddle East

At a glance, the top 20 tax havens are spread out across regions. Just under half of the list is located in Europe, but the rest are spread out across the Americas and Asia.

And the jurisdictions are opposites in many ways. They include financial powerhouses like the U.S., Japan, and the UK as well as smaller nations and territories like the Cayman Islands, Hong Kong, and Luxembourg.

But one surprising thing many of them have in common is a link to England. In addition to the UK, four of the top 20 tax havens—Cayman Islands, British Virgin Islands, Guernsey, and Jersey—are British Overseas Territories or Crown Dependencies.

Also worth noting is the importance of scale in the rankings. The highest ranking jurisdictions by secrecy score were actually the Maldives, Angola and Algeria, but they represent less than 0.1% of total offshore financial services.

Best Place To Hide Private Vs. Corporate Tax

Some of the listed tax havens might be confusing to nationals of those countries, but that’s where relativity is important. The U.S. and Canada might not be tax havens for American or Canadian nationals, but the ultra-wealthy from East Asia and the Middle East are reported to utilize them due to holes in foreign tax laws. Likewise, the UAE has reportedly become a tax haven for Africa’s ultra-wealthy.

In addition, many of the countries used as tax havens for individual wealth are also utilized by corporations.

The Tax Justice Network’s 2021 assessment of corporate tax havens listed the British Virgin Islands, Cayman Islands, and Bermuda as the top three tax corporate tax havens.

While individuals might create shell companies in tax havens to hide their wealth, corporations are usually directly incorporated in the tax haven in order to defer taxes.

But the tax haven landscape might soon shift. The G7 struck a deal in June 2021 to start taxing multinational corporations based on the revenue generated in each country (instead of where the company is based), as well as setting a global minimum tax of 15%. In total, a group of 130 countries have agreed to the deal, including India, China, the UK, and the Cayman Islands.

As the campaign to bring back deferred taxes ramps up, the question becomes one of response. Will the ultra-wealthy individuals and corporations start to work in tandem with the new rules, or discover new workarounds and tax havens?

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Misc

Chart: A Global Look at How People Spend Their Time

We all have the same 24 hours in the day. How do people spend them around the world, and how does this breakdown change by gender?

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A Global Look at How People Spend Their Time

We all have the same 24 hours in a day, but we don’t spend them the same way. Some prioritize family time or household chores, while others cherish a good night’s sleep or seeing friends.

This chart from Our World in Data compares the average time allocated across various day-to-day activities, from paid work to leisurely activities.

The data for the 33 countries profiled come from the Organization for Economic Co-operation and Development (OECD)’s Time Use database, for ages 15 through 64 years old.

Countries with the Highest Time Spent Per Activity

As the chart shows, basic patterns—work, rest, and play—emerge across the board.

When it comes to paid work, Japan emerges the highest on this list with approximately 5.5 hours per day. However, this country also has some of the highest overtime in a workweek. In contrast, European countries such as France and Spain report nearly half the same hours (less than 3 hours) of paid work per day on average.

Certain trends, however, transcend cultural boundaries. Those in Mexico find themselves spending significant portions of the day (3 hours or more) on housework, as do those in Portugal.

Activity categoryCountry with highest time spentTime spent in minutes
Paid work🇯🇵 Japan326 (Approx. 5.5 hrs)
Education🇰🇷 South Korea57 
Care for household members🇮🇪 Ireland61
Housework🇲🇽 Mexico187 (Approx. 3 hrs)
Shopping🇩🇪 Germany32
Other unpaid work & volunteering🇯🇵 Japan98 (Approx. 1.5 hrs)
Sleep🇿🇦 South Africa553 (Approx. 9 hrs)
Eating 🇫🇷 France133 (Approx. 2 hours)
Personal care🇫🇷 France107 (Approx. 1 hr 45 min)
Sports🇪🇸 Spain42
Attending events🇮🇪 Ireland42
Seeing friends🇿🇦 South Africa82
TV and radio🇺🇸 U.S.148 (Approx. 2.5 hrs)
Other leisure
(Religious/ civic duties, or unspecified)
🇳🇴 Norway154 (Approx. 2.5 hrs)

As the saying goes, all work and no play makes Jack a dull boy. In the realm of leisure activities, those in the U.S. spend approximately 2.5 hours consuming media in a day, a number that has risen even higher during the pandemic.

Meanwhile, another interesting cultural pattern is that people in France spend the most time eating, approximately 2 hours per day. These durations are similar to those in other Mediterranean countries such as Greece, Italy, and Spain—perhaps because meals are viewed as a social activity in these cultures.

Gender Disparities in Time Spent

Digging deeper, another way to look at how people spend their time globally is through the lens of gender.

Women spend nearly three times more in unpaid care work compared to men—a whopping total of 1.1 trillion hours each year—which means a lot less leisure time. This inequality is clearly defined by country in the following scatterplot:

In Norway, both men and women have equally high levels of leisure time—though it’s a rare example of such a case.

Meanwhile, in countries like India or China, significant gender gaps prevent women from moving up the socioeconomic ladder, potentially costing trillions of dollars to the global economy.

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