U.S. Wealth Gap Between Rich And Low-Income Americans At Record High
The saying “the richer get richer” never has been more true than now. “Never in the 30 years since the Federal Reserve first starting collecting wealth data has the divide between the rich and everyone else been so large, according to a new analysis by the Pew Research Center,” reports The Huffington Post.
According to the data, last year the wealth gap in the U.S. last year was the biggest since at least 1983. In fact, the median wealth of upper-income families was a whopping 6.6 times that of middle-income families in 2013, an increase from 6.2 in 2010.
And same upper-income families are now almost 70 times wealthier than low-income families. This is a record gap.
“There are two main reasons for the growing gulf between the rich and everyone else: stagnant middle-class wages and the rising wealth of America’s richest families,” reports HuffPo.
Median middle-income wealth remained stagnant between 2010 and 2013 at $96,500 but the wealth of upper-income families increased to $639,400 from $595,300. Meanwhile, lower-income wealth actually dropped, to $9,300 from $10,500.
“The latest data reinforce the larger story of America’s middle class household wealth stagnation over the past three decades,” Pew’s Richard Fry and Rakesh Kochhar wrote in a release. “Without any palpable increase in their wealth since 2010, middle- and lower-income families’ wealth levels in 2013 are comparable to where they were in the early 1990s.”
The reports illustrate that the rich have benefited the most from the economic recovery, in part due to a great stock market rally that added to their wealth and also boosting their incomes.
This growing and glaring gap is not a good look for the U.S., as it has seen much more of its income growth going to its top one percent of earners in recent decades than any other developed country.