What do you think about welfare system in United States?

Edward Wolff is Professor of Economics at the University of New York. He is the author of Top Heavy: The increasing inequality of wealth in America and what we can do about it, and many other books and articles on economic and fiscal policy. He is editor of the Journal of Income and Wealth.

Multinational Monitor: What is wealth?

Edward Wolff: Wealth is the stuff of a people. Highlights include your home or other real estate, any small business you own, liquid assets such as savings accounts, (Ronald 107)CDs and money market funds, bonds, other securities, stocks and the surrender value of life insurance you have.

MM: Why is it important to reflect on the wealth, rather than just income?

Wolff: Wealth provides another dimension of well-being. Two people who have the same income may not be as good if a person has more wealth. If a person has his home, for example, and the other person does not, then it is better off.

MM: What are the best sources of information on wealth?

Wolff: The best way of measuring wealth is to use household surveys, where interviewers ask households, a very detailed form, the assets they hold and the types of debts and other obligations which they have accumulated. household surveys are the primary source of information on the distribution of wealth.

MM: How economists measure levels of equality and inequality?

Wolff: The most commonly used and most understandable is: what part of total wealth is owned by the richest households, typically 1 percent. In the United States in the last survey year 1998, the richest 1 percent of households owned 38 percent of all wealth.

MM: What is the share of wealth held by the upper groups?

Wolff: The top 5 percent own more than half of all wealth.

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