The wealth gap between America’s upper-income families and everyone else has reached its highest level in 30 years, according to a new Pew Research Center analysis.
In 2013, the median wealth of the nation’s high income group was $639,400, nearly seven times the median wealth of middle-income families, $96,500 – the widest gap seen in 30 years when the Federal Reserve began collecting data.
In addition, America’s upper-income families have a median net worth that is nearly 70 times that of the country’s lower-income families, also the widest wealth gap between these families in 30 years.
The Pew Center analysis also confirmed that the wealth gap widened between upper-income and middle-income families during the Great Recession and while median wealth of all three groups – upper, middle and low-income – declined from 2007 to 2010, upper-income families were not nearly as hard hit and the other two groups. Median wealth declined by 17% from 2007 ($718,000) to 2010 ($595,300) among upper-income families. In contrast, middle-income (-39%) and lower-income (-41%) families had larger declines in wealth.
“The Great Recession destroyed a significant amount of middle-income and lower-income families’ wealth, and the economic “recovery” has yet to be felt for them.” the authors suggest.
It is small wonder that a majority of Americans are not feeling the impact of the economic recovery, despite a falling jobless rate, and improvements in the stock market and housing prices.
The analysis notes that while most American families remain financially stuck, upper-income families have seen their median wealth double from $318,100 in 1983 to $639,400 in 2013. The typical wealth level of these families increased each decade over the past 30 years. And while the Great Recession did lead to a fall in median wealth of upper-income families, over the past three years, these families have recouped some of their losses, the analysis reveals.
