Census: Rich-poor gap widens
By Dennis Cauchon and Paul Overberg, USA TODAY
2012/9/13
The income of American households continued to shift dramatically in 2011, falling sharply for middle-income and working-age people while rising for top earners and seniors, the Census Bureau reported Wednesday.
Overall, median household income fell 1.5% to $50,054 last year, the fourth consecutive annual decline after adjusting for inflation, the bureau said. The typical household has lost ground in seven of the past 10 years and now takes in less cash than it did in 1996 when adjusting for inflation.
The annual income report is a key indicator of the economic health of the USA and its middle class. Median income is the middle point of households — half made more, half made less in 2011. Only a handful of groups did better last year:
•Affluent. The income for the top 5% of households — those making $186,000 or more — rose 5.3% last year, reflecting the growing value of highly educated professionals. Income gains were greatest among the top 1%, said David Johnson, chief of social, economic and housing statistics for the Census Bureau. There is a "widening of the gap between the top and the bottom," he said.
•Seniors. Those 65 and older saw household income rise 2% above inflation last year and 12.8% over the last decade, helped by the steadiness of Social Security checks.
