Unit 4: How close to the 1%-ers are you?

Type your yearly income (in US$) into the calculator below and click here to see where you fit in as far as percentile of income relative to everyone else. So, for example if you earn the equivalent of $30,000 (a little under £20,000) you are in the 37th percentile or in other words, 63% of other income earners are paid more than you!

“An annual salary above $506,000 puts you in the top 1%, while you need to make less than $2,500 a year to be in the bottom 1%. Where do you stand?”

 
This is a real eye opener re income distribution in the US. Unfortunately, (or fortunately depending on your point of view) this widening of the income distribution spread is common place in the developed world.
 
Q's - Why is this a problem?