Income Inequality Is On The Rise
New York State has the highest level of income inequality in the country, followed by Florida, Connecticut and Nevada, according to a new study.
The Empire State's richest 1 percent, on average, made more than 44 times what the other 99 percent earned in 2015, the most recent year for which data is available.
On average, the top 1 percent brought home $2.2 million in New York, compared to an average of $49,617 for everyone else, according to the report by Washington, D.C.-based Economic Policy Institute, a non-profit think tank.
'Rising inequality affects virtually every part of the country, not just large urban areas or financial centers,' co-author Estelle Sommeiller said.
Overall, America's richest 1 percent made an average of 26.3 times as what the other 99 percent earned in 2015 – a 1 percent increase compared to 2013.
'It's a persistent problem throughout the country—in big cities and small towns, in all 50 states,' Sommeiller said. 'While the economy continues to recover, policymakers should make it a top priority to grow the incomes of working people while reigning in corporate profits.'
In fact, since the Great Recession of 2008, the income of the richest Americans has risen faster than the income of the other 99 percent in 43 states – and the richest 1 percent accounted for half or more of all income growth in nine states from 2009-2015.
The growth in wage disparity dates back to an era when federal minimum wages were higher, unions were stronger and taxes for the rich were more progressive, co-author Mark Price told DailyMail.com.
In addition, the wealthiest 1 percent are generating more capital income - or money generated from existing wealth rather than through work.
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'We call it "the new gilded age,"' Price said. 'Starting around 1973, the U.S. changed fundamentally and moved to a very different trajectory. Prior to 1973 the incomes of the bottom 99 percent grew faster than the incomes of the top 1 percent. That doesn't mean it was terrible to be a CEO; wealth was just more broadly shared.'
Florida's richest 1 percent made 39.5 times what the rest of the population earned. That figure was 37.2 in Connecticut and nearly 32.7 in Nevada.
Alaska had the least disparity, with the states' richest 1 percent making less than 13 times what the rest of the rest of the population earned. That was followed by Hawaii (13.7), Iowa (14.7) and West Virginia (15.3).
Nationally, a family in 2015 had to earn an income of $421,926 to qualify for the 1 percent.
The states with the highest earning thresholds to qualify were Connecticut ($700,800), New Jersey ($588,575), Massachusetts ($582,774), New York ($550,174), and California ($514,694).
Date Posted: Friday, July 20th, 2018 , Total Page Views: 1840