Income inequality widens in all 50 states
A new report finds that lopsided income growth is happening across the nation, but the gap between the top earners and everyone else is substantially wider in several states.
This post comes from Krystal Steinmetz at partner site Money Talks News.
Average real income in the U.S. grew by more than a third between 1979 and 2007. That's great news for Americans, right?
Unfortunately, no. Not all Americans, anyway.
A new report from the Economic Policy Institute shows that all 50 states have experienced lopsided income growth in recent decades. In fact, between 1979 and 2007, the top 1 percent of U.S. taxpayers took home nearly 54 percent of the total increase in income.
To put it another way, while the bottom 99 percent of earners experienced an 18.9 percent average growth in income, the income of the top 1 percent grew more than 10 times that much -- a whopping 200.5 percent increase.
Here are some other key findings from the report:
- Between 1979 and 2007, the average income increased only for the top 1 percent in Alaska, Nevada, Michigan and Wyoming. The income of the bottom 99 percent actually dropped. In 15 other states, the top 1 percent captured 50 to 84 percent of all income growth.
- Incomes at all levels dropped during the Great Recession, but income inequality soared as the economy stabilized in 2009. "Only the top 1 percent gained as the economy recovered," the report said.
- In 2011, New York and Connecticut had the biggest income gaps between the top 1 percent and the bottom 99 percent. The top earners in both states make 40 times the average income of the bottom 99 percent.
The report says the financial sector helps to fuel rising income inequality. Four of the 10 states with the steepest rise in incomes among the 1 percent between 1979 and 2007 had big financial sectors, including New York, Connecticut, New Jersey and Illinois.
However, in an interview with 24/7 Wall St., Mark Price, co-author of the study and a labor economist at the Keystone Research Center, said that income inequality is pervasive across the country.
"It's not just a story of the financial markets in New York City," Price said. "Over time, that (top) group in each state is accruing an increasingly larger share of the growth in income."
24/7 Wall St. used the EPI report to help determine the 10 states where income inequality has increased the most. Here are the top five:
We've all heard the saying: The rich get richer and the poor get poorer.
How are the top 1 percent doing in your state, compared with the 99 percent? Click here to find out, then share your thoughts below.
More on Money Talks News:
Well if we would have attempted a jobs bill in 2009/2010 maybe we could have fixed a part of healthcare. Or, if we would have fixed illegal immigrants from taking construction jobs we could fix jobs and healthcare.. Funny how that all seems to be tied together..
The 35 year old elephant in the room is the advent of cheap labor in the construction industry. When I was a teenager, I went from fast food to construction as a way to get above the poverty line.. Learned to run equipment. Then when in the Navy. Came back out after 4 years and resume construction. During the early 80's, it became clear that cheap labor was being used in place of hard working American's.. Thank goodness I had my GI bill and went back to school!! Supposedly, that was to be addressed in 86'/87' when we had our first big MASS Amnesty. the promise was, we will fix the boarder, we will fix labor.. Didn't happen. So when the Great Recession came, we could not fall back on construction jobs as they did for the Great Depression..
The rate at which our young men, Black,White,Hispanic (Legal),Korean, Japanese, etc etc are having to endure unemployment (+21%) should be an indication that jobs and immigration need to be addressed in order to bring back good paying jobs for these young men..
Ant and Grasshopper:
The ant works hard in the withering heat and the rain all summer long, building his house and laying up supplies for the winter. The grasshopper thinks the ant is a fool and laughs and dances and plays the summer away. Come winter, the shivering grasshopper calls a press conference and demands to know why the ant should be allowed to be warm and well fed while he is cold and starving. CBS, NBC, PBS, CNN, MSNBC and ABC show up to provide pictures of the shivering grasshopper next to a video of the ant in his comfortable home with a table filled with food. America is stunned by the sharp contrast and label the ant as the greedy 1%. Chris Matthews asks, “How can this be, that in a country of such wealth, this poor grasshopper is allowed to suffer so?” Then he says the Republicans caused it and they just want the Grasshopper to die! Kermit the Frog appears on Oprah with the grasshopper and everybody cries when they sing, 'It's Not Easy Being Green...'Occupy the Anthill stages a demonstration in front of the ant's house where the above so called news stations film the SEIU and ACORN Yelling "No Justice, No Peace" followed by them singing, ‘We shall overcome’, ‘Imagine’ and ‘Kumbaya’. Then Rev. Jeremiah Wright, Jesse Jackson and Al "Not So" Sharpton have the group kneel down to pray for the grasshopper's sake, while they vilify the ant and say his selfishness was the result of racism and Income Inequality. President Obama condemns the ant and blames President Bush 43, Bush 41, President Reagan, Christopher Columbus, and the Pope, Fox News, ATM's, The Tsunami In Japan, Global Warming, The Tea Party, Big Banks, Private Jet Owners, Wall Street Greed, The Arab Spring, The BP Oil Spill and The Worse Economy Since the Great Depression for the grasshopper's plight.. Nancy Pelosi & Harry Reid exclaim in interviews with Bill Maher and Rachel Maddcow that the ant has gotten rich off the back of the grasshopper, and both call for an immediate tax hike on the ant to make him pay his fair share and then pass a 2700 page bill called GrasshopperCare that no one reads before it becomes law. Finally, the EEOC drafts a 4000 page Economic Equity & Anti-Grasshopper Act retroactive to the beginning of the summer that will heavily regulate the ant’s activities. The ant is fined for failing to hire a proportionate number of green bugs and, having nothing left to pay his retroactive taxes, his home is confiscated by the Government Green Czar and given to the grasshopper. The story ends as we see the grasshopper and his free-loading friends finishing up the last bits of the ant's food while the government house he is in, which, as you recall, just happens to be the ant's old house, crumbles around them because the grasshopper doesn't maintain it. The ant has disappeared in the snow, never to be seen again. The grasshopper is found dead in a drug related incident, and the house, now abandoned, is taken over by a gang of spiders who terrorize the ramshackle, once prosperous and peaceful, neighborhood. The entire Nation collapses, taking the rest of the free world with it.
Knight's Templar 777
Many others came for affluent parents or family wealth and had every opportunity to reach the 1%, ie
good colleges and a good start in life.
How many of the 99% started that way.
Switch your homepage to Yahoo and your search engine to Google. MSNBC is doing it's best to paint those who are successful as evil. Note a similar trend in the movies where the bad guy is normally rich and has always made his money unethically.
There is a deliberate attempt to brain wash and facilitate class warfare.
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