9 States Where Income Inequality Really Stings

Income inequality
Mopic / Shutterstock.com

Income inequality is a national concern. The income gap between the top-earning 1 percent and the rest of Americans has increased in every state since the 1970s, a new report shows.

But income inequality also affects some parts of the nation a lot more than others, according to a state- and local-level analysis released by the Economic Policy Institute today.

In nine states, for example, the gap between the top 1 percent and the other 99 percent was wider than the national average, according to the report.

The nine states that had the widest gaps as of 2013 were:

  1. New York
  2. Connecticut
  3. Wyoming
  4. Nevada
  5. Florida
  6. Massachusetts
  7. California
  8. Texas
  9. New Jersey

New York has the widest gap, with the top 1 percent earning 45.4 times the average annual income of those in the 99 percent. In other words, the average income of the top 1 percent was $2,006,632, while the average earned by the 99 percent was $44,163.

The report attributes New York’s income inequality partly to “the relative concentration of the financial sector in the greater New York City metropolitan area.”

Co-author Estelle Sommeiller, a socio-economist at the Institute for Research in Economic and Social Sciences in France, primarily attributes income gaps to broader causes:

“The degree of income inequality differs from one city to another, but the underlying forces are clear. Inequality isn’t a regional issue. It’s the result of intentional policy decisions to shift bargaining power away from working people and towards the top 1 percent.”

What’s your take on income inequality? Share your thoughts with us below or on Facebook.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
5 Common Medical Expenses That Medicare Won’t Pay For
5 Common Medical Expenses That Medicare Won’t Pay For

Don’t let these health care costs catch you off guard in retirement.

15 Painless Ways You Can Cut Costs in 2020
15 Painless Ways You Can Cut Costs in 2020

Follow these tips to save — so you’ll have money for things that really matter.

5 Ways to Slash Your Tax Bill as a Retiree
5 Ways to Slash Your Tax Bill as a Retiree

Here’s how to keep Uncle Sam’s mitts away from your nest egg.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Trending Stories