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Study: Gap between rich, poor Americans accelerates. Middle class stuck between a lower class with shrinking incomes; upper class expanding slice of the pie.

April 10, 2008 by editor  (View Source

(msn/reuters) The gap between rich and poor in many U.S. states has broadened at a quickening pace since the last recession, which could make it difficult for low-income families to weather the current economic downturn, according to a report issued today. Since the late 1990s, average incomes have declined 2.5% for families on the bottom fifth of the country's economic ladder, while incomes have increased 9.1% for families on the top fifth, said the report from the liberal-leaning Center on Budget and Policy Priorities and Economic Policy Institute. The result is that the average incomes of the top 5% of families are 12 times the average incomes of the bottom 20%. "The report's bottom line is that since the late 1980s, income gaps widened in 37 states and have not narrowed in any states," said Jared Bernstein, one of the report's authors. "In fact, we've found that the trend toward growing inequality has accelerated during this decade." Meanwhile, the middle class has remained virtually stagnant, with average incomes growing just 1.3% in nearly eight years, the report said.


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