CT Continues to Lead Nation in Income, but Wealth Poorly

CT continue to lead nation in income, ut
wealth poorl ditriuted
 Ana Radelat, ctmirror.org
eptemer 30th, 2015
Wahington – Connecticut continue to lead the nation when it come to peronal
income, federal economit a, ut other report how the tate i alo No. 1 when it
come to the uneven ditriution of that wealth etween the ver rich and everone
ele.
The U.. ureau of conomic Anali aid Wedneda that Connecticut ene⹬幻ted from
an increae of 1.1 percent in peronal income etween the ⹬幻rt and econd quarter of
thi ear -- etter than the national average of 0.9 percent.
The A a peronal income grew in ever tate except Oklahoma in the econd
quarter. Wahington tate experienced the highet growth rate, 1.5 percent.
The A alo aid that in 2014, Connecticut had a per capita peronal income of $64,864,
the highet in the nation. That per capita income wa 141 percent of the national average,
$46,049.
ut, according to the conomic Polic Intitute, Connecticut alo lead the nation in the
uneven wa that income i ditriuted.
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Thi chart  the conomic Polic Intitute how that Connecticut' mot wealth hold a
greater hare of the tate' income than their counterpart do nationall.
In the “Increaingl Unequal tate of America," releaed earlier thi ear, the PI aid
that focuing on inequalit in 2012, the mot recent ear for which tate data are
availale,” New York and Connecticut had the larget gap etween the average income
of the top 1 percent and the average income of the ottom 99 percent.”
“In oth tate the top 1 percent earned average income more than 48 time thoe of the
ottom 99 percent. Thi reect in part the relative concentration of the ⹬幻nancial ector
in and eond the New York Cit metropolitan area,” the report aid.
The PI’ report aid that, after adjuting for ination, the income of wealthiet 1
percent of Connecticut’ reident grew  35 percent etween 2009 and 2012, while the
ret of the tate’ reident experience an actual drop in peronal income of 5.4 percent.
“Clearl what’ tand out aout Connecticut i that it ha had a huge amount of growth
among high-earner, not onl ince the recover ut in the lat 35 ear and that’
ecaue of the ⹬幻nancial ector,” aid Mark Price, an author of the PI report.
He expect that trend, which he called “the mot extreme of what we’ve een,” to
continue.
The A’ releae on peronal income aid Connecticut’ aid the tate’ income growth
wa driven  the ⹬幻nancial and inurance ector.
The PI’ data wa derived from Internal Revenue ervice ⹬幻ling, and the latet availale
information from the IR i from 2012.
Price aid he hope the trend toward a wider and wider wealth gap ha “revered a it”
ince 2012, with mot Connecticut reident experiencing a light poitive growth in
income in 2015 a the econom ha grown tronger.
“ut the meteoric rie in the income of the wealth will continue,” Price aid.
dward McKenna, an economic profeor at Connecticut College, alo aid “everod
i not ene⹬幻tting” from the growth of peronal income in the nation, which wa 4.4
percent for Connecticut and the nation a a whole lat ear.
McKenna aid concentration of the nation’ income growth among the wealthiet
American hurt the econom ecaue the rich are more likel to ave their mone than
middle cla or low-income American. A low pending rate depree the econom,
McKenna aid, and depree growth of the gro dometic product or GDP.
Connecticut i lagging the nation in GDP.
“The propect of growth in the future ecome le likel and unemploment in the
future ecome more likel,” McKenna aid of the uneven trend in income ditriution.
He alo aid "it certainl would not e urpriing to determine thee kind of
development are taking place in Connecticut."
The A alo aid peronal income i not ditriuted evenl within geographic region
of Connecticut.
In 2014, peronal income in the ridgeport-tamford-Norwalk metropolitan area wa
$82,009, the highet in the tate, the A aid.
The Norwich-New London area peronal income wa $50, 322. ut the lowet peronal
income wa earned in the northeat ection of the tate that i part of the Worceter,
Ma., metropolitan area. Peronal income in that region wa $47,462 lat ear.