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Vj Laxmanan 2 minutes ago (as of March 24, 2013 11:46 PM) Posted at Forbes.com
Here’s an interesting correlation between the average net worth of billionaires and ordinary American households.
Average Net Worth, U = UN /N [$, billions]
$0.00 0 20 40 60 80 100 120 140
Number of billionaires, N
Figure 1: The average net worth of the billionaires in a country U = U N/N where UN is the combined net worth of all the N billionaires in a country. Here we consider the data for Germany (58, 5.108), Russia (110, 3.883) and China (122,
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. This is illustrated in Figure 1. according to the 2013 Forbes Billionaires list is. see Figure 2. I did some checking and got the data on the number of US households along with mean and median values for the net worth from the most recent 2011 US Census Bureau Report.  and other tables USCB tables. This is exactly similar to the situation observed with US households between 2000 and 2011. “Americans have gotten poorer over the past decade”. and 122. see also Table 1.155. after sorting the worldwide billionaire list by country of citizenship. In a recent CNNMoney article. Take Germany. . Ref.2.cnn. http://economy.money. see Refs.018. says Luhby. . Page | 2 .883. M. [1-3]. UN. 110. Vornovytskyy. The combined net worth. and Smith. The number of billionaires N in these three countries. goes down with increasing billionaires. and 2. Guess what? The number of households N increased between 2000 and 2011. see Figures 1 and 2. has called attention to the US Census Bureau (hereafter USCB) data. Ref. 3. which shows that the median net worth. Tami Luhby. see Refs. 9] and the image of the relevant data copied from Ref.115). So. With increasing number of households N the mean (or average) and median net worth decreased. see Ref. Gottschalck. As the number of billionaires N increases. . The number of US households N is not stated.com/2013/03/22/americanhouseholdwealth/?source=cnn_bin Only the median net worths are stated by Luhby and also by the USCB economists. just like the average worth of the billionaires decreased as the number of billionaires N increased. Ref. U = UN/N. [8. the average net worth U decreases. Russia and China. Ref. of US households decreased between 2000 and 2011 with a peak value for 2005. . The average billionaire net worth. 5. of the N billionaires in each country can be determined by adding their individual net worths. 58.
There were nearly 800 guesses. One man guessed it EXACTLY 1.078 father-son pairs were studied). Galton noted that the middlemost (what we call the median) was popular and higher and lower guesses were shouted out.org/wiki/Francis_Galton http://www. including statistics and promoted what we call correlations and linear regression analysis. Anyway. The villagers were asked to guess its weight. I don’t know which wise guy told the US Bureau of Statistics to use the “median” household income in all their comparisons of trends.stat.198 pounds. was prominent in many fields.8% of the true weight. Page | 3 . a cousin of Charles Darwin.) In my article on the “median” billionaire (click here). Sir Francis Galton. 197 pounds.tamu. I have shown that the median is an utterly meaningless statistic! Sources: http://en.edu/~hart/212/simpreg1. he once attended a village fair where an ox was on display.pdf Galton’s graph of son’s height versus father’s height is on page 6.wikipedia. the average 1. Even after this Galton story. was even more accurate. The median was within 0. (Other countries also use “median” household income. But. after slaughtering and dressing.A story about the Median Here’s an interesting story about the Median. He found the famous relation between the height of the son and the height of the father (1.
March 24.000 122.000 $72.000 $69.000 118. Very sincerely V. you say? Not really. N [in 000s] Figure 2: The average net worth of the households in a country U = UN/N where UN is the combined net worth of all the N households in a country. see references cited under related articles. Sc.000 110. Laxmanan. at a given Page | 4 .000 $73.000 $74.Just a coincidence. Mathematically speaking the two problems are identical and are governed by the same law relating N (households or billionaires) to the average net worth. D.000 $71.000 Number of US households.000 $70. U = UN /N [US dollars] $75.000 106.000 114. 2013 Average Net Worth. This has been discussed in several recent articles dealing with the billionaire problem.
821 2000.084 $50. Vornovytskyy.621 Note: Only number of households.977 2004 -113.019 $72. the average net worth decreases as the number of households increases.384 $53. Table 1: Relevant data from the US Census Bureau reports and tables Median Mean Year wealth. Poverty and Health Insurance Coverage in the United States. (US dollars) (US dollars) 2011.947 2000.297 53. Refs. The number of households and their median and mean net Page | 5 Households Table 59 Ref.6] --$81. Refs.278 $53.677 2010 117.783 117.[5.[5.259 2005.997 2003 -112. It should be noted that the median net worth figures in the 2011 US Census Report are significantly different from the median values given by Gottschalck.831 $69.475 2007 -116.788 $71. .  Households Table A-1 Ref.646 $73. Ref. wealth Ref. The graph of the median net worth reveals an exactly identical pattern.841 $74.011 $53. While the number of households N was not mentioned in these two articles.585 2005 113. for the years indicated. .232 2002 -111.[5. As we see here.181 117.326 2001 -109. Ref.828 2011 121. Ref. it can be obtained from the Table A-1 of the 2011 US Census Report come.  .546 $71. Ref. Ref.000 $52.point in time. .783 $54.927 $50.973 $72.054 $69. 2005.705 108.489 $73.371 $72.343 $52. and Smith.195 $71. This is exactly analogous to the decrease in the average net worth of the billionaires seen in Figure 1.  and also in a CNNMoney article.538 119.518 2009 117. which is also cited in the CNNMoney article. is given in Table 59 of Ref.181 $52.6] --$108.768 $74. . and 2011.  104.6] --$68. Refs. Here we consider the data for the years 2000. Ref.343 114.209 $54.337 2006 -116. cited in a recent US Census Bureau report.538 $52.278 2008 116.
821 in 2000 (in inflation-adjusted dollars) and far below the peak of $108.money. http://www.forbes. by Luisa Kroll. The World’s Billionaires. there is a significant discrepancy in the number of households N data.worths are given in Table A-1 of Ref. March 13.com/sites/luisakroll/2013/03/04/inside-the-2013billionaires-list-facts-and-figures/ 3. Household Wealth in the US: 2000 to 2011. http://www.com/sites/edwindurgy/2013/03/13/averagebillionaire-net-worth-by-country-full-list/ 5. March 4. Average Billionaire Net Worth by Country: Full list. by Alfred Gottschalck. The median values. References List 1. Mapping the Wealth of the World’s Billionaires.forbes. March 22. http://www. http://www.com/2013/03/22/americanhouseholdwealth/?source=cnn_bin The median net worth of American households came in at $68. 2013. The Richest People on the Planet 2013. Where American stash their Wealth? by Tami Luhby. do not agree with the values given in Ref. 2005 and 2011. according to recently released Census Bureau stats. down from $81.com/billionaires/ 2.forbes. by Luisa Kroll and Kerry A. The most recent figures from Table A-1 are used here since these are considered to revised figures. cited by Tami Luhby are given here. March 9.828 in 2011. 2013. by Edwin Durgy. 6. 2013. by Luisa Kroll. 2013. http://economy. Also.585 in 2005.pdf The median net worth values for 2000. Marina Vornovytskyy and Adam Smith. 2013.cnn. . however. March 4. Dolan.census.gov/people/wealth/files/Wealth%20Highlights%202 011. http://www. . Inside the 2013 Billionaires List: Facts and Figures. The dollar amounts are in constant 2011 Page | 6 .forbes.com/sites/luisakroll/2013/03/09/mapping-thewealth-of-the-worlds-billionaires/ 4.
$1.gov/qfd/states/00000.745.914. see the image of the relevant data extracted below. Poverty.235] by 2011 (a decrease of $37.census. between 2000 and 2011. Overall.9 trillion to $40. which starts on page 31 has the required data on number of households N.$1. Published by US Census Bureau.census.pdf Table A1. Page | 7 . Current Population Reports.040 and 2010 population 308. and Health Insurance Coverage in the United States: 2011.821 [+/.585 [+/. Income.642] in 2005 (an increase of $24. and the median household income for the years 2000-2011.828 [+/. the mean household income.993. Median household net worth showed no statistically significant change between 2010 and 2011.538. or 16 %.dollars with inflation-adjustment factors. Median household net worth in the United Sates has followed this pattern over the past decade increasing from $81. 7. http://www.gov/prod/2012pubs/p60-243. with detailed breakdown by races gender.455] in 2000 to $106. State and County Quick Facts (Google search US Census Bureau number of households http://quickfacts. 8.html) 2012 US population estimate 313. median household net worth decreased by $12. and age (click here to get table).2 trillion.764 or 30 percent) and then decreasing to $68. Between 2000 and 2011.757 or 35 percent)1 (see Figure 1). aggregate net worth of $28.$1. P60-243.
Empirical Evidence for Entropy Outside Physics: Wealth Distribution among billionaires in the 2013 Forbes and Hurun Rich Lists.com/doc/132059874/The-Empirical-Evidence-forEntropy-Outside-Physics-Wealth-Distribution-among-the-billionaires-of2013-Forbes-and-Hurun-Rich-Lists Published March 24.761.  says the data has been revised. 4. Average Net Worth by Country .  values are used. Published Mar 22. http://www.gov/compendia/statab/cats/population/households_f amilies_group_quarters.The number of households. Average Net Worth of Billionaires and Ordinary US households. 2013. Published March 24. 9.scribd. 705 given here.census.com/doc/131830628/Wealth-Distribution-Betweenthe-2013-Forbes-and-the-Hurun-Rich-Lists.Part 1: Preliminary Analysis of the 2013 Forbes Billionaire Data. Average Net Worth by Country .html The number of households given in Table 59 here does not agree with the figures given in Ref. Ref. Page | 8 . as seen in the image for 2000 the number of households per Ref. 2013.762.scribd. Hence. http://www. http://www. The median household income from 2007-2011 is given as $52.209 versus 104.350 and the average persons per household is given as 2.com/doc/131208984/The-Average-Net-Worth-byCountry-Part-I-Analysis-of-the-2013-Forbes-Billionaires-Data 5.  is 108.scribd. Footnote in Ref. Wealth Distribution between the 2013 Forbes and Hurun Rich Lists.com/doc/132189331/Average-Net-Worth-ofBillionaires-and-Ordinary-US-Households 2. http://www. is given as 114. 2007-2011. 2013.scribd. Related articles on the Billionaire Problem 1. 2013. . Published March 18. 3. to be Published March xx. 2013. US Census Bureau: 2012 Statistical Abstract (Google search for number of households) click here to go to the table http://www.60.Part 2: Analysis of the 2013 World’s Billionaire Data.
10.scribd. 8. Published March 18.6.scribd. Preliminary Analysis of the Forbes 2013 World’s Billionaires Data. http://www. 2013. Published March 9. http://www. 2013. 2013. Part 1: Introducing the x-y Diagram. http://www.scribd.scribd. Published March 21.scribd. http://www. The Average Net Worth by Country.scribd.com/doc/130377891/The-Growth-of-BillionairesWorldwide-and-in-USA-Analysis-of-the-data-since-1982 14. Published March 15. Average Net Worth by Country . Published March 19.com/doc/130826078/Quantitative-Comparison-of-theBillionaires-in-the-Forbes-Hall-of-Fame Published March 17. 2013.com/doc/131764299/Average-Net-Worth-of-Billionairesby-Country-The-2013-Hurun-Rich-List Published March 22.com/doc/131005255/The-Recent-Growth-in-theAverage-Worth-of-US-Billionaires-%E2%80%9909-%E2%80%9813-ACurious-Limits-to-Growth-Revealed-Again 11. The Recent Growth in the Average Worth of US Billionaires (’09-‘13) A Curious Limits to Growth Revealed Again.com/doc/130517722/Growth-in-the-Combined-Net-Worthof-Billionaires-From-2000-2013-An-Interesting-Limit-to-Growth-is-Revealed 13.Part 2: Analysis of the 2013 World’s Billionaire Data.Growth in the Combined Net Worth of Billionaires from 2000-2013: An Interesting Limits to Growth is Revealed.Quantitative Comparison of the Billionaires in the Forbes Hall of Fame. http://www. 12. 2013 http://www.Countries with the most billionaires in the 2013 Forbes Billionaire List. to be Published March xx. http://www.com/doc/129406030/Countrieswith-Most-Billionaires-in-the-Forbes-2013-Billionaires-List Page | 9 . Published March 14.com/doc/131208984/The-Average-Net-Worth-byCountry-Part-I-Analysis-of-the-2013-Forbes-Billionaires-Data 9. China has fewer billionaires than most other large countries.scribd. Average Net Worth of Billionaires by Country: 2013 Hurun Rich List.Growth of Billionaires Worldwide and in the USA: Analysis of the number of billionaires data since 1982.com/doc/131583456/China-Has-Fewer-BillionairesAccording-to-the-Billionaire-Net-Worth-Analysis2013 7. 2013. http://www. 2013. 2013.scribd. 2013.
scribd. Page | 10 . Published Mar 11. 2013 http://www. 2013.15. Published March 6.scribd. http://www. to be published shortly.com/doc/129722844/Per-CapitaTrends-for-the-Ultra-High-Net-Worth-UHNW-Residents-in-US-Cities 17. http://www.Per Capita Trends for Ultra High Net Worth Residents in US Cities.scribd. http://www.com/doc/129863162/Average-Worth-of-the-Top-10Billionaires-in-a-Country 16. 2013.com/doc/129634796/Europe-and-Asia-Pacific-Billionairesin-the-2013-Forbes-List-What-s-the-difference 18. 2013.scribd.Average worth of the Top 10 Billionaires in a Country.scribd. Billionaires and the Population Law: Analysis of the 2013 Forbes Billionaire’s List. The Rate of Creation of Billionaires: Analysis of the Forbes 2013 Billionaire List.Europe and Asia-Pacific billionaires in the Forbes 2013 list: What’s the difference? Published March 10.com/doc/128610494/The-Forbes-Billionaires-andCalculus-Is-Einstein-s-Work-Function-Observed-Here 20. Published March 11. Billionaires and Calculus: Ratio versus Rate of Change Is Einstein’s Work Function Observed In this Problem? Published March 5. 2013. http://www.com/doc/128944910/The-Rate-of-Creation-ofBillionaires-Analysis-of-the-2013-Forbes-Billionaire-s-List 19.
now part of Honeywell.g. Laxmanan.) and Doctoral (Sc. E. This led to a simple model to explain the growth of dendritic structures in both the groundbased experiments and in the space shuttle experiments. More recently. yes. freezing of water. Cambridge.About the author V. production of snowflakes!). Bangalore. This extends (to financial and economic systems) the mathematical arguments used by Max Planck to develop quantum physics using the analogy Energy = Money. E. from the Indian Institute of Science.) degrees in Materials Engineering from the Massachusetts Institute of Technology. Allied Chemical Corporate R & D. M. MA. i. and General Motors Research and Development Center in Warren. USA. referred to here as the generalized power-exponential law. NASA. The mathematical law deduced by Planck. also in Mechanical Engineering. he was responsible for developing material processing experiments to be performed aboard the space shuttle and developed a simple mathematical model to explain the growth Christmas-tree. each with the fixed quantum of energy conceived by Planck). D. might Page | 11 . Case Western Reserve University (CWRU). Einstein applied Planck’s ideas to describe the photoelectric effect (by treating light as being composed of particles called photons. The author obtained his Bachelor’s degree (B. MI). energy in physics is like money in economics. like structures (called dendrites) widely observed in many types of liquid-to-solid phase transformations (e...) in Mechanical Engineering from the University of Poona and his Master’s degree (M. His expertise includes developing simple mathematical models to explain the behavior of complex systems. or snowflake. and. D.e. He holds four patents in materials processing. freezing of all commercial metals and alloys. he has been interested in the analysis of the large volumes of data from financial and economic systems and has developed what may be called the Quantum Business Model (QBM). He then spent his entire professional career at leading US research institutions (MIT.). has co-authored two books and published several scientific papers in leading peer-reviewed international journals. While at NASA and CWRU. Sc. followed by a Master’s (S.
appointed by GM corporate management. economics and management sciences now essentially seem to operate like astronomy and physics before the advent of Kepler and Newton. Cover page of AirTran 2000 Annual Report Can you see that plane flying above the tall tree tops that make a nearly perfect circle? It requires a great deal of imagination to see and to photograph it. It appears that financial and economic systems can be modeled using a similar approach. Finance. 1986) and second at GM Research Labs to Prof. Robert Schrieffer (1972 Physics Nobel Prize). Finally. Page | 12 . business. during my professional career. Robert Solow (1987 Nobel Prize in economics). I also twice had the opportunity and great honor to make presentations to two Nobel laureates: first at NASA to Prof. who was the Chairman of the Schrieffer Committee appointed to review NASA’s space flight experiments (following the loss of the space shuttle Challenger on January 28. Einstein’s photoelectric law is a simple linear law and was deduced from Planck’s non-linear law for describing blackbody radiation.actually have many applications far beyond blackbody radiation studies where it was first conceived. who was Chairman of Corporate Research Review Committee.
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