BT talks more out of his ass. They do suck at math. They’re wishing/desiring for a distribution which can’t occur except in very very narrow distribution of wealth, the math simply doesn’t work. You should lookup the survey you’re discussing before talking out of your ass more. They were shown that chart and preferred it.
Wealth inequality is different than economic inequality which is different than income inequality. You’re conflating the two in your post above. NYT and Slate have both conflated the 2 when using that same Norton survey.
Here’s an article about those very same Norton and Ariely charts. They swapped Swedish “income distribution” for “wealth distribution” and then surveyed. http://blogs.reuters.com/felix-salmon/2011/03/25/swedish-inequality-datapoint-of-the-day/
They admit they’re comparing apples to oranges in the footnotes to show contrast. “We used Sweden’s income rather than wealth distribution because it provided clearer contrast to the equal and United States distributions...”
“We took a survey of 5000 people and asked if they’d prefer diamonds or graphite, they uniformly liked diamonds.” Great survey, that tells me jackshit about American carbon.
If you’re going to have millionaires and you’re going to have 0 or negative wealth people, which I think we can all agree is going to happen in any real world scenario. The math doesn’t allow for the bottom quintile to control 10% of wealth. It just can’t happen in the real world.
Real world wealth distribution
Fake wealth distribution
“I prefer the one that can’t exist, we should base our economic policies on the one that can’t exist.” Kick ass survey, glad you talked to 5000 people.