Friday, August 15, 2008

Income chasm widening in Massachusetts

The Boston Globe reports:
The gap between rich and poor has widened substantially in Massachusetts over the past two decades, according to a new study by the University of Massachusetts. Only those earning the highest incomes benefited from gains in technology, productivity, and globalization, while middle-class earnings stagnated and incomes for poor families plunged 15 percent.

The report analyzed census data between 1979 and 2006. It found that after the so-called miracle years of the 1980s, when rising incomes were broadly shared, only families in the top 20 percent of the income scale experienced substantial gains.

Adjusted for inflation, median family income for this group rose 11 percent between 1989 and 2006. The earnings of middle-class families were essentially flat during that period, and those of the poor fell.
For a growing middle class,try Texas.It helps not having a state income tax.