$hide=home

10 cities where the rich get richer and the poor get poorer

© erllre / iStock

By Samuel Stebbins, 24/7 Wall St.

Income inequality continues to rise in the United States. The Gini coefficient, a standard measure for the distribution of wealth in an area, rose significantly in the 1980s and 1990s, indicating growing inequality. Since the end of the recession, the top 1% of earners have reached a new high while income gains for the bottom 99% has been much more incremental.

Some degree of income inequality seems to be necessary for any capitalist system to function optimally. However, beyond a certain level of income inequality, its ability to promote broad economic growth breaks down.

The U.S. economy relies on consumer spending and as wealth becomes increasingly concentrated, the highest earners need to use a smaller share of their income, which can ultimately reduce consumer spending. Meanwhile, the working and middle and lower classes depend increasingly on borrowing, often going deeper into debt.

Despite growing inequality, the nation as a whole is becoming wealthier and financial hardship, or poverty, is becoming scarcer. The share of Americans living below the poverty line fell from 15.9% in 2012 to 13.4% in 2017. Over the same period, the share of U.S. households earning $150,000 or more climbed from 9.2% to 13.2%.

Not every part of the country is following this pattern. There are 10 metro areas where low income households getting poorer and high income households getting richer is contributing rising income inequality.

In these metro areas, the share of households earning less than $35,000 a year is larger now than it was five years ago. The changes include a 0.2 percentage point uptick in Las Cruces, New Mexico, where the share households earning less than $35,000 a year climbed from 47.6% in 2012 to 47.8% today. In Houma-Thibodaux, Louisiana the change was even more pronounced, climbing by 5.4 percentage points from 36.6% to 42.0%.

At the same time, the share of households earning $150,000 or more a year in these 10 areas is also up. In Rapid City, South Dakota, there was a small uptick in the households earning at least $150,000 a year, from 6.1% in 2012 to 6.4% today. In Bismarck, South Dakota the increase was larger, from 8.3% to 12.6%.

While income inequality is not necessarily as pronounced in these cities as it is nationwide, it is growing faster in each of them than the nation as a whole. The increase in the Gini index expressed as a percentage over the last five years ranges from 0.9 in Wichita Falls, Texas, to 5.3 in Dover, Delaware. For reference, the Gini index climbed 0.7 nationwide over the same period.


Methodology

To identify the cities with rising income inequality, 24/7 Wall St. reviewed five-year change in the Gini Index for metropolitan statistical areas. To be considered, each metro area’s Gini Index, share of households earning less than $35,000 a year, and share of households earning $150,000 or more a year all needed to have increased over that period. Household incomes and Gini scores came from the U.S. Census Bureau’s 2017 American Community Survey.

COMMENTS



|Featured Content_$type=three$c=6$l=0$m=0$s=hide$rm=0


Made with in NYC
Name

4th of July,7,Accessories,25,Acne,3,Advice,140,African Food,2,AIDS,1,Alcohol,4,All About Beer,1,All About Wine,2,Alternative Treatments,4,American Food,5,Animal,367,Animal Health,1,Animals,34,Anniversary Cake,11,Appetizers & Snacks,2,Asian Food,7,Asthma,4,Australian Food,1,Autism,1,Auto Insurance,1,Auto Show,52,Autos,46,Baby Shower Cake,29,Back Pain,25,Balance Work & Life,50,Banana Cakes,2,Barn Finds,1,Be a Better Manager,33,Beef Recipes,7,Beverages,3,Bills to Pay,35,Birth Control,1,Birthday Cake,109,Blueberry Cake,11,Bread,11,Breads,1,Break Room,12,Breakfast & Brunch,6,Brownie,8,Bundt Cake,30,Business Skills,102,Butter Cake,52,Buying,1,By Region,3,Cake Decorating,113,Cancer,73,Car Shows,1,Car Tech,2,Caramel Cake,5,Career,221,Career Advice,298,Career Choice,125,Career Growth,180,Career Paths,24,Career Problem,8,Carrot Cake,22,Ceremonial Cake,9,Certified Pre-Owned Vehicles,1,Cheese Recipes,4,Cheesecakes,251,Chicago Auto Show,2,Chicken Recipes,14,Chiffon Cake,5,Children's Health,21,Chocolate Cake,395,Christmas Cake,23,Classic Cars,39,Clinical Practice,1,Cocktail Recipes,2,Coconut Cake,21,Coffee,1,Coffee Cake,15,Companies,2,Consumer Electronics Show,5,Cookies,10,Cooking,1,Creative,309,Cupcake,322,Customs & Classics,2,Dandruff,1,Demotivational,636,Dental Health,26,Dentistry,1,Depression,24,Desserts,3,Detroit Auto Show,4,Diabetes,25,Diet,131,Dining Out,3,Dinner,14,Disease,116,Diverse,1,Doughnuts,5,Drink,27,Drinks,1,Drinks & Cocktails,4,Driving,3,Drugs,3,Ears,2,Easter,1,Education,85,Eggs,3,Entertainment,147,Enthusiasts,131,Entrepreneurship,40,European Food,8,Exercises,51,Eye Health,28,Facts,284,Fat Loss,91,Father's Day Cake,4,Featured,125,Features,374,Finance,5,Fish & Seafood,13,Fitness,594,Fitness & Exercise,219,Food,83,Frankfurt Motor Show,2,Fruit & Veggie Recipes,8,Fruitcake,70,Fruits,4,Fuel Economy,1,Fun,42,Funny,546,Gearheads,1,General,7,Geneva Motor Show,3,Get Healthy,63,Graduation Cake,2,Halloween,2,Halloween Cake,12,Headache,22,Health,1181,Health & Fitness,300,Health Care,466,Health Insurance,1,Healthcare Tech,5,Healthy,12,Healthy Eating,186,Healthy Habits,159,Healthy Living,132,Hearing,1,HIV/AIDS,4,Hot Rod Power Tour,1,Ice cream Cake,21,Imports,1,Insurance,5,Internship,8,Interview Skills,37,Investing,12,Job Search,47,Just For Fun,2,Lamb,2,Latin American Food,1,Layer Cake,95,Leadership,44,Legs,1,Lemon Cake,18,Life,1,Lifestyle,1360,Los Angeles Auto Show,14,Lunch,5,Maintenance,3,Mango Cake,3,Marketing,10,Markets,11,Marshmallow,3,Massage,5,Meditation,29,Men & Women,18,Men's,4,Men's Health,14,Mental Health,294,Middle Eastern Food,2,Money & Career,21,Motorcycles,106,Motorsports,2,Mousse,2,Muffins,9,Mug Cake,14,Multiple Sclerosis,1,Muscle Cars,4,Muscle Cars & Hot Rods,3,Muscle Gain,2,New Bikes,2,New Car Deals,1,New York Auto Show,3,News,332,Nutrition,447,Offbeat,564,Oral,4,Ownership,61,Pain,24,Pancake,19,Panna Cotta,3,Paris Motor Show,4,Pasta,2,Pastry,7,Pebble Beach Concours d'Elegance,2,People & Places,88,Personal Finance,164,Pets,115,Pie,27,Plum Cake,1,Poke Cake,10,Popular Ingredients,26,Pork Recipes,7,Pound Cake,55,Pregnancy,72,Premium,1,Protein Bars,1,Psychology,1,Pudding,9,Pumpkin Cake,45,Quick & Easy Recipes,11,Real Estate,72,Recalls,4,Recipe,1089,Recipes,52,Recipes & Meal Ideas,3,Recipes By Course,5,Relationships,49,Research,94,Restaurants & News,13,Resume,11,Retirement,10,Reviews,1,Safety,5,Salad,6,Science & Tech,66,Self Help,14,SEMA Show,5,Sex,7,Sexual Health,19,Shanghai Auto Show,7,Shaving,1,Sheet Cake,20,Shots & Shooters,1,Side Dishes,4,Skin Care,33,Sleep,62,Small Business,163,Smile,1,Smoothies & Juices,3,Snacks,1,Special,6,Special Cake,579,Special Feature,113,Special Features,54,Sponge Cake,15,Sports,22,Sports and Exotics,4,Sports Cars,8,Strawberry Cake,22,Stress Relief,35,Stroke,2,Supercars,10,Tarts,12,Taxes,7,Teas,2,Tech,89,Technology,6,Teeth,5,Thanksgiving Cake,4,Therapy,3,Tips,109,Tips & Tricks,6,Tokyo Motor Show,2,Tools & Skills,16,Top Stocks,1,Top Stories,1,Traditional Cake,4,Training,1,Travel,847,Trucks,1,True Health,5,Valentine's Day Cake,7,Vanilla Cake,17,Vegetables,3,Video,5,Waffles,3,Wedding Cake,549,Weight Gain,23,Weight Loss,468,Weird,172,Wellness,71,Women's,689,Women's Health,173,Work Environment,77,Workouts,81,Yoga,58,
ltr
item
dearJulius.com: 10 cities where the rich get richer and the poor get poorer
10 cities where the rich get richer and the poor get poorer
https://1.bp.blogspot.com/-F97Vvy4Exu8/W97-GneBDuI/AAAAAAAAhPo/TErSRvinmAgkirfDbVSeG0JQErJchlGdwCLcBGAs/s1600/1.jpg
https://1.bp.blogspot.com/-F97Vvy4Exu8/W97-GneBDuI/AAAAAAAAhPo/TErSRvinmAgkirfDbVSeG0JQErJchlGdwCLcBGAs/s72-c/1.jpg
dearJulius.com
https://www.dearjulius.com/2018/11/10-cities-where-rich-get-richer-and.html
https://www.dearjulius.com/
https://www.dearjulius.com/
https://www.dearjulius.com/2018/11/10-cities-where-rich-get-richer-and.html
true
673833072858841524
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy