Walmart Heirs Worth Same Amount As Bottom 30 Percent Of Americans In 2007: Analysis

The Occupy Wall Street movement has brought increased focus on the disparity between the top one percent of earners and everyone else in the United States. But one American family paints a particularly stark picture of the country's wealth gap.

The six children of Walmart's founders, Sam and James "Bud" Walton, had the same net worth in 2007 as the entire bottom 30 percent of American earners, according to an analysis from Sylvia Allegretto, a labor economist at University of California-Berkeley's Center on Wage and Employment Dynamics.

Though the 2007 figure is striking, the gap between the Walmart heirs and the rest of the country may get even bigger -- the Walton's combined fortune has grown by more than $20 billion, according to data compiled from the Forbes 400 this year.

Allegretto compared the Waltons' net worth in 2007, according to Forbes magazine, to the Federal Reserve's 2007 Survey of Consumer Finances.

The difference between the wealth of the Walmart heirs and the rest of the country epitomizes a much larger American story. The top one percent of American earners saw their incomes grow 275 percent between 1979 and 2007, according to the Congressional Budget Office, while the bottom one-fifth experienced only 20 percent income growth during the same period.

Looking at it another way: The top 10 percent of U.S. earners control two-thirds of the country's wealth and the richest 400 Americans control as much wealth as the bottom 50 percent of Americans. The difference is so stark that the public opinion has turned against it: nearly three-quarters of respondents to a poll put out by The Hill said they think income inequality is a problem.

But the rise in income inequality isn't limited to America. In 17 out of 22 countries the Organization for Economic Cooperation and Development tracks, the wealth gap has grown more pronounced since 1985. In addition, the world's millionaires control nearly 40 percent of global wealth, according to a Credit Suisse report cited by the Wall Street Journal.

Here are fifteen things you have to know about income inequality:

Comments

[uncalledfor]

08:49 AM on 07/13/2012

What the vast majority of Americans don't understand is that these uber-rich families are actually rich because of high end government welfare. Their companies consume vast amounts of resources (e.g. roads, public education) without paying their true cost. They are getting a free ride on the backs of the masses. Add to that the nightmare of children being born with billions of inherited dollars. How on Earth is a child born with nothing going to compete on an equal footing with that?

The idea of a meritocracy goes out the window when big companies are legally allowed to write environmental, labor and tax laws and then have their cronies in Washington push them through.

[Tom Hendricks]

06:58 PM on 01/26/2012

Many corporations are doing very well, and sitting on their cash or giving to outgoing execs. But business can't grow if their customers can't grow. That's why a National Hiring Day would help all so much - and do it more fairly and quickly than just about anything else.
Corporations are sitting on a lot of profit - all time highs - and they are ready to hire, but scared to stand out and be the first. A National Hiring Day would help them by getting many on board.

National Hiring Day - This is a day that corporatio­ns are encouraged to hire new employees. Corporatio­ns are called on to put patriotism first and help their country in
hard times. Those corporatio­ns that cannot hire, are asked to stop firing for that month. That's something every corporation can and should do to help.

1. If companies can send thousands of jobs overseas, they can hire one American on National Hiring Day.
2. If companies can get millions in tax breaks and subsidies from the government, they can help it in return by hiring one American on National Hiring Day.
3. With companies sitting on all time high profits, they can hire one person on National Hiring Day - which by the way, would help them in return.

[DataBoy]

09:03 PM on 05/26/2012

Is this an actual movement, or are you proposing this uniquely?

[Tom Hendricks]

12:02 PM on 05/29/2012

Both. I began it. For more on National Hiring Day idea, seehttp://wp.me/p5S9X-nv  Let me know what you think.

[mavpay]

11:40 AM on 12/20/2011

Contrast this story with today's (12-20-11) HuffPo article: "The New Blue Collar: Temporary Work and Lasting Poverty." Most HuffPo readers are aware that this is beyond party affiliation. There is really "class warfare," not in the historical sense, but against the vast majority of Americans. By now, most are aware that WE THE PEOPLE are under assault. It is evident who has won. What's next, debtors prisons, where MOST must work for free in exchange for paying off debts? The question is, how long will most suffer in silence before the masses DEMAND fair treatment?

http://thinkprogress.org/economy/2011/12/09/385941/walmart-heirs-worth-30-percent-bottom/

[mavpay]

07:45 PM on 03/12/2013

Thank You for the fave!  I'm curious, how did you find this old post?  These old posts are continuing to resurface more frequently.

[Tane555]

05:28 AM on 12/15/2011

As a fiscal conservative, I find this most disturbing. Jefferson said one of the three things that would corrode the new nation was inherited wealth. This type of wealth does not circulate, but accumulates. Ole' Sam circulated his wealth rather handily, but these siblings (and if you know the family, you know I speak truth) circulate nothing.

They have been sending our jobs overseas with their purchases of cheap Chinese goods to the harm of the American Consumer all for the sake of a few extra dollars of profit they couldn't spend in a thousand lifetimes. They pay less taxes because they perpetuate wealth through the other thing that Jefferson felt was an evil,special interest lobbyists.

The lower 30% would not be straddling that poverty line or living in such conditions without health care, or educations, or political influence if the money spent in China alone would be circulated in this country. So, please don't tell me how American this form of Free Enterprise is.

This is not a liberal/conservative issue. This is real evil that, will cause a real train wreck in this country soon. So, I only ask, no matter what political affiliation you have, to step back and see the whole picture. People and companies like this care nothing for America, and the jobs they provide do not come close to reflecting the ill gotten profits and revenues they send out of this country.

[ecbot]

08:53 AM on 12/15/2011

"The lower 30% would not be straddling that poverty line or living in such conditions without health care, or educations­..."

The study was talking about net worth, not income levels. You can make $200k per year which would put you well above the poverty line but still have a net worth of $0 (or less) simply by having more debt than assets.

[Tane555]

10:32 PM on 12/15/2011

Right..."Net Worth". I was not referring to their wealth but their circulation and over accumulation. Their invested worth is almost equal. This is public info. The main point is they are buying Chinese goods over American for the sake of a few dollars more profit. The 70 Billion they have is not circulating but the revnue stream produced by Walton companies does circulate and out of this country.....yes, I understand "net" worth.

If Walmart and many other companies who are purchasing cheap crap abroad instead of investing in the USA, would circulate this activity here, the standard of living would be higher...no doubt. We can get into the amount given to charity etc. at least Walmart pays a higher percentage of tax over other companies, but their buying practices are suspect.,

[iknowscottyknows]

01:10 AM on 12/15/2011

They obviously have the billions of dollars I so rightly deserve for simply being.

[ecbot]

08:44 PM on 12/14/2011

Judging from the comments, this article sure sucked in a lot of people as it was designed to do.

The analysis from Sylvia Allegretto was about NET WORTH not income inequality. Of course, whoever wrote this starts talking about income inequality and puts up a graph about it.

People, net worth is assets minus liabilities. Anybody who graduated from college in the past 3 years and is carrying a student loan, probably has a negative net worth. Has nothing to do with income.

Hell, I have a 1700 sq ft 3 bedroom, 2 bath house that is fully paid off and some money in a 401(k). I have a net worth that is larger than probably 20% of the population - all those with more debt than assets, i.e. zero (or negative) net worth.

[RudyHaugeneder]

01:15 PM on 12/13/2011

Horrible -- until you read elsewhere today on this site that the average American worker earns over $37,000 yearly. Combining the income of two wage earners in any standard family unit, that's roughly $75,000 annually. In my opinion, taken individually or as a combined family income, that's not bad. In fact, it's pretty darn good money in most places across America, and the world.

[DataBoy]

09:09 PM on 05/26/2012

With respect Rudy, 37K doesn't go nearly as far as it used to. And it was a great deal easier to earn 37K when I was a kid than it is now for most people. 30 years has yielded only regression in terms of income/costs, in truth.

[dakotanprudle]

10:48 PM on 12/12/2011

Thanks to daddy! Did these kids ever do anything on their own?

[whitakerpoc1]

10:07 PM on 12/12/2011

and now I have another reason why I never step foot in a walmart

[stevebehindthechapel]

04:26 PM on 12/12/2011

There’s a good article is in our local blog about Walmart coming to Humboldt County and keeping the development plans secret from the public. Our city officials and the developer won't tell you a thing about it. Years ago, our voters defeated a similar move through referendum. This time around, Walmart muscled its way into the community through the back door using their proven method of collusion. I hope you'll give it a gander.

http://humboldtsentinel.com/2011/12/09/weekly-roundup-for-december-9-2011/

[Mister Grumpy]

01:15 PM on 12/12/2011

The Walmart business model is to pay its workers just enough to still qualify for government aid. But not so much that they can qualify for unemployment benefits.

[bradenton]

12:56 PM on 12/12/2011

WalMart is a front for Red China.

[MiddletownHal]

12:38 PM on 12/12/2011

Income inequality is a good thing. Restaurants where dinner for two could cost as much as $100 employ a lot more people then your neighborhood fast food or Cracker Barrel. If it weren't for rich people, everyone would have to eat fast foods and if there were no rich people, there would not be any expensive restaurants hiring and tips would disappear. No one tips at Burger King. Rich people have to have income inequality because it helps separate them from the rest of us and makes them work harder to stay that way. This is good for the economy.

[Mister Grumpy]

01:18 PM on 12/12/2011

How republican of you. lets bring back indentured slavery shall we?

[ladywing]

09:37 PM on 12/12/2011

You appear to be a pseudo-intellectual running dog of the rich. Are you doing this for fun?

Or did you get tired of playing with Popsicle sticks?

[plan-uts]

11:54 AM on 12/12/2011

While Google and GE paid next to nothing or nothing in Federal Income Taxes, in 2010 Walmart paid 7.1 billion, or over 32%. When Helen Walton died in 2007 an estimated 16 billion, almost all in Walmart stock went to charity. That stock will be sold over a number of years to fund various charities. Unless you died in 2010, all these giant estates are going to go to the tax man or some charity. So did your 2007 analysis of the Walton's include the 16B?

[Moxo]

05:01 PM on 12/12/2011

And don't forget Alice Walton's $2.6 million contributed to the famed Swiftboat Veterans for Truth!

[DataBoy]

09:16 PM on 05/26/2012

Really? Oh she was fashionable long before those distasteful Koch boys, wasn't she?!

[Mister Grumpy]

10:34 AM on 12/12/2011

And why do you shop at Walmart? It's not because of the low prices. Don't believe the lies.