The United States has some of the highest levels of income and wealth inequality in the world. Data from the U.S. Federal Reserve shows that the richest 10% of Americans control $ 93.8 trillion, more than double the $ 40.3 trillion held by the remaining 90% of Americans.
The gap between income and wealth only seems to be widening. A January 2020 report released by the Pew Research Center found that over the past four decades, the income growth of the top 5% of families in terms of income has far exceeded the income growth of families in the lower strata. .
In a country as large as the United States, one can expect varying levels of income inequality. While some regions have large income gaps, other regions of the country are defined, at least in part, by their relative income equality.
Using data from the 2019 American Community Survey from the US Census Bureau, 24/7 Wall St. identified the city with the smallest income gap in each state. Cities are ranked according to their Gini coefficient, a measure of income inequality based on the distribution of income in a population on a scale of 0 to 1 – 0 representing perfect equality and 1 representing the highest level of inequality. high possible. For the purposes of this story, cities are defined as any place covered by the census with populations between 1,000 and 25,000.
While each location on this list has the lowest degree of income inequality in its state, Gini scores vary – from 0.212 to 0.389. Nationally, the Gini coefficient is 0.482.
The causes of rising inequality in the United States are complex and varied. A report released by the National Bureau of Economic Research links the growing disparity to a range of economic factors, including globalization, technological advances, a stagnant minimum wage and the decline of unions.
Click here to see the city with the smallest income gaps in each state
Click here to see our methodology