It is true, however, that the current generation may only be slightly better off than their parent's generation, a result of the slowing of the growth in GDP per capita. However, statistical averages mask the diversity that exists withing a given cohort. Therefore, it is informative to look at how our income and wealth are distributed throughout the population. As an example, Kuwait is often cited as having one of the highest GDP per capita figures in the world, however its income distribution is so skewed towards the top that most people in Kuwait are fairly poor. Many of the other oil-producing nations are in the same situation.
Income distribution has direct consequences on the poverty rate in a country.
Even in a wealthy country, poverty is a problem if a significant fraction of the poorest people have little or no income. We will examine poverty in the United States and then turn to the issue of income distribution. If money income falls below the poverty line, people are counted as poor. Click here to view a Census Bureau table showing poverty rates for families . Click here to view a chart of the poverty rate.