A new study by the Center on Budget and Policy Priorities shows that the gap between the richest and poorest Americans grew substantially during the last decade, both in Iowa and across the country. The authors used “the latest Census Bureau data to measure post-federal-tax changes in real incomes among high-, middle- and low-income households in each of the 50 states and the District of Columbia at four points: the late 1970s, the late 1990s, and the mid-2000s – similar points (“peaks”) in the business cycle – and the late 2000s.”
Click here to read the full report and view data from each state. After the jump I’ve posted the key findings about income inequality in Iowa, where the average incomes among the richest 5 percent of households are 3.5 times as large as the average incomes in the middle 20 percent and 8.7 times as large as average incomes in the bottom 20 percent of households. Speaking to the Public News Service, Elizabeth McNichol of the Center on Budget and Policy Priorities explained why growing income inequality is bad for the economy as a whole.
Infographic from Pulling Apart: A State-by-State Analysis of Income Trends.