The share of income earned by the richest 5% in each state – 24/7 Wall St.

There are different ways of measuring the wealth of a country. For example, the World Bank ranks the United States first in total gross domestic product, but 13th in per capita GDP, below other wealthy countries like Switzerland, Ireland and the United Arab Emirates.

Nonetheless, the United States is undeniably an immensely wealthy country. It tops the list for the number of both high net worth individuals, generally defined as those with financial assets exceeding $ 1 million in value (5.9 million of them, according to global consultant Capgemini) and billionaires (724). (Here is how much you need to earn to be in the top 1% in each state.)

At the same time, the United States continues to suffer from the worst income inequality of any rich capitalist democracy. A 2017 analysis by the Federal Reserve Bank of St. Louis shows that income inequality in America is “very close to average” with that of the African countries included in the study, and well below its peers with similar per capita income. , like Sweden.

Click here to see the share of income earned by the richest 5% in each state.

To identify states where the richest 5% earn half the income, 24/7 Wall St looked at the aggregate income share by quintile from the U.S. Census Bureau’s American Community Survey for 2019. Also from ACS, we looked at poverty rates, median household income, and Gini coefficients for 2019. The Gini coefficient (or index) is a statistical measure developed by the early 20th century economist, Corrado Gini, representing income or wealth inequalities within a given group. A Gini coefficient of 0 means everyone has equal income, while a coefficient of 1 indicates maximum inequality (i.e. one person or group controls all wealth).

While extreme poverty can coexist near immense wealth anywhere in the United States, from the rich “blue” cities of the north to the poor “red” counties of the south, the concentration of income – a significant measure of l income inequality – is not evenly distributed across states. There is also no obvious correlation between a state’s political tendencies and its level of income inequality. For example, liberal California ranks much higher than conservative Alabama on income inequality, even though Alabama is among the poorest states in the country. (Compare Richest and poorest US states.)

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