This
graph shows the percent change in after-tax income since 1979 for the top 1 percent, highest fifth, middle fifth and bottom fifth. The
most significant trend is the growth of the top 1 percent category, which increased +281% between 1979-2007. Other categories rise only +95% (highest
fifth), +25% (middle fifth) and +16% (Bottom fifth) during this time. Although all
categories have increased since 1979, the rate of increase is not equal. It can be
seen that the increase of after-tax income grows with the
amount of each income. From this, it can be said that the rich become more and
more wealthy at the time of economic growth. This is one of the characteristics of a capitalist
society.
In order to enjoy economic growth equally, this graph suggests that the current tax system is not optimal. If we do not raise the rate of progressive taxation more progressively, the benefits of economic growth will not be spread among the lower-income class. To prevent the harmful effects of capitalist society, we should do more to promote progressive tax. Otherwise, the rate of After-Tax Income in 2035 since would be as follows; +1000% (top 1 percent), +150% (highest fifth), +20% (middle fifth) and +5% (bottom fifth). Society stratifies when the income gap widens. Therefore, this will not be a healthy society.
2. Oil consumption in millions of barrels per day (a graph from “Language of Graphs” )
This
graph shows the difference in oil consumption of the United States and Japan between
1975-2004. According to this graph, the amount of oil consumption
per day of United States increased remarkably during this time, but that of
Japan was stable. In 1975, US oil consumption in
millions of barrels per day was 16.32. In 2004, it increased to 20.52. In
comparison to this, Japan’s oil consumption in millions of barrels per day
was 4.62 in 1975 and 5.58 in 2003. It concludes that “Japan’s oil
consumption has remained steady since 1975, while U.S. consumption has risen
steadily.” Also, the graph explains this by saying “Japan has no domestic
sources of fossil fuel and, facing rising oil prices, has turned energy
efficiency into an art form.”
There are several problems with this conclusion. First, Japan’s oil consumption between
1975-2003 did not remain steady. Although it looks flat from the line chart,
when looking at the rate of increase, there is no great difference between the US (+126%) and Japan (+121%). In
fact, oil consumption in Japan has increased rather than “remained steady.”
Second, while it is true that Japan has developed energy efficient technologies,
we should consider other factors. For example, the Japanese economy was
stagnant at that time while the US economy grew continuously. As we know, economic
activity is the main factor determines the amount of oil consumption. When an economy
grows, oil consumption also increases. If the economy is stagnant, oil consumption
does not increase. Therefore, energy efficiency cannot be a
primary explanation.