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February 20th, 2014 By German Lopez | News | Posted In: News, Economy

Income Inequality Rises in Ohio

Ohio fares better than other states, national average

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income inequalitySource: Policy Matters Ohio

Income inequality vastly grew in Ohio and other states between 1979 and 2011, but Ohio actually fared better than most other states, according to a Feb. 19 report from the Economic Policy Institute and the Economic Analysis and Research Network (EARN).

Ohio’s top 1 percent saw their inflation-adjusted income grow by roughly 70 percent between 1979 and 2011, according to Policy Matters Ohio’s analysis of the report. During the same time period, the bottom 99 percent actually saw their income drop by nearly 8 percent.

Still, Ohio’s income gap isn’t as bad as states like New York and Connecticut, where the top 1 percent make roughly 40 times as much as the bottom 99 percent.

In Ohio, the top 1 percent’s average income in 2011 was 18.1 times greater than the 99 percent’s average income, below the U.S. average of 24.4.

The findings show a trend reversal in incomes in Ohio and the rest of the nation. Between the late 1920s and mid-1970s, the income gap generally narrowed. It wasn’t until the 1970s that the wealthiest began outpacing the rest of the country.

“The levels of inequality we are seeing across the country provide more proof that the economy is not working for the vast majority of Americans and has not for decades,” Keystone Research Center economist Mark Price said in a statement. “It is unconscionable that most of America’s families have shared in so little of the country’s prosperity over the last several decades.”

Economists on both sides of the political spectrum blame various issues for rising income inequality, including the rise of globalization, poorly structured trade treaties, the loss of manufacturing jobs, the inflation-adjusted fall of the minimum wage, the United States’ weak social safety net and the stagnant economy.

In Cincinnati, the effects of income inequality are felt on a neighborhood level. While some local neighborhoods fall below a median family income of $20,000 per year, various neighborhoods’ median family incomes top $100,000 per year.

The massive income gap correlates with the city’s 20-year disparity in neighborhood life expectancies. In impoverished neighborhoods like Lower Price Hill, residents can expect to live to their mid-60s. In wealthy neighborhoods like Mount Adams, the average life expectancy is in the mid-80s.

Given the results, some advocates say its time to adopt a new nationwide approach to the economy.

“It’s clear that policies were set to favor the one percent and those policies can, and should, be changed,” EARN Director Doug Hall said in a statement. “In order to have widespread income growth, bold policies need to be enacted to increase the minimum wage, create low levels of unemployment, and strengthen the rights of workers to organize.”

 
 
02.22.2014 at 04:57 Reply

Yet another fine piece of class warfare with no concrete evaluation of causes, no data analysis or solutions other than 'policy' for which nobody in the article has any control over.  blah, blah, blah.  Look at the statistics: if you graduate from high school you will earn >50% more than if you graduate. If you dropout, you are 63X more likely to end up in jail. If you go to college, even with the 8.1% unemployment rate of 2011, college graduate unemployment was 4.1%.  There is no rationale why a CEO is 'worth' 24M a year, but most people's problems are caused by themselves and their decisions.

 

 
 
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