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U.S. NEWS Friday 27 September 2019

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Census: U.S. inequality grew, including in heartland states

By MIKE SCHNEIDER income increased, it was cording to Sean Snaith, an Dakota and South Dakota enriched people who own
Associated Press distributed unevenly, with economist at the University had the most economic stocks, property and other
ORLANDO, Fla. (AP) — The the wealthiest helped pos- of Central Florida. equality. assets, and have sources of
gap between the haves sibly by a tax cut passed by On one side, at the peak Three of the states with the income other than wages,
and have-nots in the Unit- Congress in 2017, said Hec- of their earnings, are baby biggest gains in inequal- said Donna Ginther, an
ed States grew last year tor Sandoval, an economist boomers who are nearing ity from 2017 to 2018 were economist at the University
to its highest level in more at the University of Florida. retirement, if they haven't places with large pockets of Kansas.
than 50 years of tracking
income inequality, accord-
ing to U.S. Census Bureau
figures released Thursday.
Income inequality in the
United States expanded
from 2017 to 2018, with
several heartland states
among the leaders of the
increase, even though sev-
eral wealthy coastal states
still had the most inequality
overall, according to the
figures.
The nation's Gini Index,
which measures income
inequality, has been rising
steadily over the past five
decades.
The Gini Index grew from
0.482 in 2017 to 0.485 last
year, according to the bu-
reau's one-year American
Community Survey data.
The Gini Index is on a scale
of 0 to 1; a score of "0'' in-
dicates perfect equality,
while a score of 1 indicates
perfect inequality, where
one household has all the
income.
The increase in income In this Tuesday, Jan. 27, 2015 file photo, Terry, cleans out his tent at a large homeless encampment, near downtown St. Louis.
Associated Press
inequality comes as two
Democratic presidential "In 2018, the unemployment already retired. On the oth- of wealth: California, Texas "We've had a period of sus-
candidates, U.S. Sens. Ber- rate was already low, and er side are millennials and and Virginia. But the other tained economic growth,
nie Sanders and Elizabeth the labor market was get- Gen Zers, who are in the six states were primarily in and there are winners and
Warren, are pitching a ting tight, resulting in higher early stages of their work the heartland: Alabama, losers. The winners tend to
"wealth tax" on the nation's wages. This can explain life and have lower salaries, Arkansas, Kansas, Nebras- be at the top," Ginther said.
richest citizens as a way to the increase in the median Snaith said. ka, New Hampshire and "Even though we are at full
reduce wealth disparities. household income," San- "I would say probably New Mexico. employment, wages really
The inequality expansion doval said. "However, the the biggest factor is de- A variety of factors were haven't gone up much in
last year took place at the increase in the Gini index mographics," he said. "A at play, from a slowdown the recovery." q
same time median house- shows that the distribution wealth tax isn't going to fix in agricultural trade and
hold income nationwide in- became more unequal. demographics." manufacturing to wages
creased to almost $62,000, That is, top income earners The areas with the most in- that haven't caught up
the highest ever measured got even larger increases come inequality last year with other forms of income,
by the American Commu- in their income, and one of were coastal regions with economists say.
nity Survey. But the 0.8% the reasons for that might large amounts of wealth While some states have
income increase from 2017 well be the tax cut." — the District of Columbia, raised the minimum wage,
to 2018 was much smaller A big factor in the increase New York and Connecti- other states such as Kan-
compared to increases in in inequality has to do cut — as well as areas with sas haven't. At the same
the previous three years, with two large population great poverty: Puerto Rico time, the sustained eco-
according to the bureau. groups on either end of the and Louisiana. nomic growth from the re-
Even though household economic spectrum, ac- Utah, Alaska, Iowa, North cession a decade ago has