Anyone familiar with the math behind mean (average) vs. median as it relates to the graphic below from this CNN/Money story about individual net worth around the world would immediately conclude that we’ve got quite the wealth inequality problem here in the U.S., at least relative to other developed nations.
The much higher average net worth relative to median net worth in the U.S. is rivaled only by Sweden and Denmark, whereas, countries such as France, Finland, Italy, Japan, and the U.K. actually have a higher median than mean.
The math is best demonstrated by the case of Bill Gates walking into a room full of ordinary Americans. While the median net worth would be virtually unchanged, the average net worth of those people would go up by an extraordinary amount (e.g., if the room has ten ordinary people, the average net worth would rise to somewhere around $4 billion).
Though a stubborn housing bubble (that may not always be so stubborn) has much to do with it, Australia certainly seems to have the whole wealth thing figured out.