Last Update: Feb 9 @ 2:17 PM
Economy
Rich get richer, poor get poorer
COURTESY CENTER ON BUDGET AND POLICY PRIORITIES, ECONOMIC POLICY INSTITUTE / U.S. CENSUS BUREAU DATA


WASHINGTON – The rich got richer and the poor got poorer over the past two decades, two nonprofits found in a joint study of data from the U.S. Census Bureau’s Current Population Survey. The gap grew fastest in Connecticut, followed by Rhode Island and No. 3 Massachusetts, the Center on Budget and Policy Priorities and the Economic Policy Institute say in a report released today.

Nationwide, the average income rose 9.0 percent for the top fifth of families, edged up 1.3 percent for those in the middle fifth, and fell 2.5 percent for those in the bottom fifth of the income scale. In the Ocean State, the average income for the poorest fifth fell 5.0 percent, or $58 per year, to $19,840 per year; the middle fifth saw an increase of 13.6 percent, or $397 per year, to $56,457; and average income for the top fifth of families rose 43.5 percent, or $2,555 per year, to $143,211.

The largest gaps between rich and poor in the mid-2000s were seen in New York, Alabama, Mississippi, Massachusetts, Tennessee, New Mexico, Connecticut, California, Texas and Kentucky. Rhode Island had the nation’s 12th-largest gap between rich and poor, with the top 20 percent of families reaping average incomes 7.5 times greater than those of the bottom 20 percent, up from 5.0 times in the late 1980s.

The gap between rich and middle-income Ocean State families in the mid-2000s was the nation’s 24th largest. The top 20 percent had average incomes 2.5 times as large as the middle 20 percent, up from twice the middle-income earnings two decades earlier.

The Center on Budget and Policy Priorities is a nonpartisan research and policy institute. The Economic Policy Institute is a nonprofit, nonpartisan think tank that seeks “to broaden the public debate about strategies to achieve a prosperous and fair economy.” Both are based in Washington, D.C. For more information, including including the full report, “Pulling apart: A state-by-state analysis of income trends,” visit www.CBPP.org or www.EPI.org.

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