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Last Word Chp.21
Year Median Average
1995 $84,000 $307,900
1998 98,100 386,700
2001 106,100 487,000
2004 107,200 517,100
2007 126,400 584,600
2010 77,300 498,800
Go to Table 1 the Last Word and compute the ratio of average wealth to median wealth for each of the 6 years. What trend do you find? What is your explanation for the trend? The federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Do you favor repealing the estate tax? Explain.
Read Chapters 21 regarding Income Inequality and Discrimination; please respond to the Last Word Question and be sure to provide examples of taste for discrimination and your opinion on the economic impact and the same for Statistical Discrimination. Explain both areas in a total of 4 paragraphs using examples.
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