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ORLANDO, Florida – The gap between the haves and have-nots in the United States reached its highest level in 50 years of tracking income inequality, according to Census Bureau figures.
In the United States, income inequality increased from 2017 to 2018, with several states in the center of the country leading the way, even though many wealthy coastal states still had the highest inequality, according to published figures. Thursday by the US Census Bureau.
The country's Gini index, which measures income inequality, has risen steadily over the past five decades.
The Gini index rose from 0.482 in 2017 to 0.485 last year, according to office data, published in a year by the American Community Survey. The Gini index is on a scale of 0 to 1; a score of "0" indicates perfect equality, while a score of "1" indicates perfect inequality, where a household has all the income.
The increase in income inequality comes as two Democratic presidential candidates, the United States Sense. Bernie Sanders and Elizabeth Warren, impose a "wealth tax" on wealthy citizens of the country to reduce wealth disparities.
The increase in inequality last year occurred at the same time that the median household income reached almost $ 62,000 last year, the highest level ever measured by the American Community Survey. But the revenue increase of 0.8% between 2017 and 2018 was well below the increases of the previous three years, according to the office.
Even though household income has risen, it has been unevenly distributed, with the wealthiest perhaps being helped by a tax cut adopted by Congress in 2017, said Hector Sandoval, an economist at the University of Toronto. University of Florida.
"By 2018, the unemployment rate was already low and the labor market was tightening, which resulted in higher wages.This may explain the increase in the median household income," Sandoval said. "However, the rise in the Gini index shows that the distribution has become more unequal.In other words, the incomes of people with the highest incomes have risen even more, and the number of people in the population has risen. one of the reasons for this reduction could well be the reduction of the tax. "
According to Sean Snaith, an economist at the University of Central Florida, two important factors in increasing inequality are the presence of two large population groups at both ends of the economic spectrum.
On one side, at the peak of their incomes, are the baby boomers who are nearing retirement, though they have not already taken it. On the other hand, there is Generation Y and General Z-ers, who are in the early stages of their professional life and have lower wages, Snaith said.
"I would say that the most important factor is demographics," he said. "A wealth tax will not fix the demographics."
The most unequal areas in terms of income last year are the rich coastal areas – the District of Columbia, New York and Connecticut, as well as the areas of great poverty – Puerto Rico and Louisiana.
Utah, Alaska, Iowa, North Dakota and South Dakota had the most economic equality of equality.
Three of the states where inequality increased the most from 2017 to 2018 were rich countries like California, Texas and Virginia. But the other six states were mainly located in the heart of the country – Alabama, Arkansas, Kansas, Nebraska, New Hampshire and New Mexico.
A number of factors were at stake, from the slowdown in agricultural trade and manufacturing to wages that have not yet caught up with other forms of income, economists say.
Some states have increased the minimum wage, but not Kansas. At the same time, the sustained economic growth of the recession ten years ago has enriched the holders of stock, real estate and other assets and having sources of income other than the wages, said Donna Ginther, economist at the University of Kansas.
"We have had a period of sustained economic growth, and there are winners and losers, and the winners tend to be at the top," said Ginther. "Even though we are at full employment, wages have not increased much in the recovery."
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