ORLANDO, Fla. – According to the Census Bureau, the gap between owners and non-owners in the United States has grown at its highest level for more than 50 years.
Income Inequality in the US The United States expanded from 2017 to 2018, with several core states at the top of the rise, although several wealthy coastal states still displayed the greatest inequality, according to the US Census Bureau on Thursday.
The Gini of the Nation The index, which measures income inequality, has risen steadily over the past five decades.
The Gini Index rose from 0.482 in 201
The rise in income inequality is due to two Democratic presidential candidates, US Sen. Bernie Sanders and Elizabeth Warren impose a "wealth tax" on the richest citizens in the country to reduce wealth disparities.
The expansion of inequality last year occurred at the same time as the median household income rose to almost $ 62,000 nationwide last year. the highest ever measured by the American Community Survey. However, according to the Bureau, the increase in income by 0.8% from 2017 to 2018 was much lower than in the previous three years.
Although household income increased, it was unevenly distributed, with the most affluent income possibly supported by a tax Hector Sandoval, an economist at the University of Florida, said the cut was passed by Congress in 2017.
"By 2018, the unemployment rate was already low and the labor market tense, resulting in higher wages, which may explain the increase in median household income," Sandoval said. "The rise in the Gini index, however, shows that the distribution has become more uneven, meaning that high-income earners have seen even greater income increases, and one of the reasons for that could be the tax cut."
A According to Sean Snaith, an economist at the University of Central Florida, the big factor in the increase in inequality has to do with two large populations at both ends of the economic spectrum.
On the one hand, at the peak of their income, are baby boomers approaching retirement if they have not yet retired. On the other side are Millennials and Gen Z-er, who are at an early stage of their working lives and have lower salaries, Snaith said.
"I would say that probably the biggest factor is demographics," he said. "A wealth tax will not solve demographic problems."
The areas with the highest income inequality last year were coastal areas of great wealth – the District of Columbia, New York, and Connecticut, as well as areas of high income poverty – Puerto Rico and Louisiana.
Utah, Alaska, Iowa, North Dakota and South Dakota had the greatest economic equality.
Three of the states with the biggest rise in inequality between 2017 and 2018 were places with large fortunes – California, Texas and Virginia. But the other six states were mainly in the heartland – Alabama, Arkansas, Kansas, Nebraska, New Hampshire and New Mexico.
A variety of factors have played a role, from a slowdown in agricultural trade and manufacturing to wages that did not exist Economists say they have caught up with other types of income.
While some states have raised the minimum wage, other states like Kansas have not. At the same time, decade ago, the ongoing economic growth of the recession has enriched people who own shares, property and other assets and have sources of income other than wages, said Donna Ginther, an economist at the University of Kansas.
] "We had a period of sustained economic growth and there are winners and losers, with the winners usually leading," said Ginther. "Although we have full employment, wages have not really risen during the recovery."