Wealth Gap Vs Income Gap

The wealth gap in america has been growing since at least the 1970s as income levels stagnated for lower and middle class households while continuing to grow for households at the top of the spectrum.

Wealth gap vs income gap. Over the course of a woman s lifetime the income gap of 80 cents to the dollar snowballs into a wealth gap of 36 cents for every dollar of wealth owned by a man. Then there s the racial wealth gap. The wealth gap is even greater than the income gap in part because of racially biased policies that led to more white families boosting their net worth through homeownership. While income is generated wealth is created there is a big difference between two many think that these two terms are one and the same thing but in reality income is a stream of money which a person receives from different sources such as salary rent profit interest etc that helps in the creation of wealth and wealth is the total market value of all the assets possessed stored or.

Wealth is even more important than. The widening gap between annual incomes in america. As of 2013 the median white household had 141 900 in wealth while the median black household had a paltry 11 000. Unemployment rates are consistently higher for black workers than for white workers.

Those on the high end of the gap rich will state that is crucial to our economic system and those in the middle or low end will state that the lack of economic wealth or income has and is declining prosperity home ownership quality of education and health. The median hispanic household had 13 700. Income inequality in america. These trends in income distribution are significant in parsing the racial wealth gap because income distribution directly shapes the maldistribution of wealth across the races.

The current situation between the wide gap between wealth and income is at its highest in our nation and the effects of the gap can be seen nationwide.