Florida’s income gap widening, study says

Wealthiest residents see biggest jump in earnings

Are the rich are getting richer? It’s true, according to a new report by a Washington, D. C., think tank. Income inequality is expanding in Florida, with the state’s wealthiest residents, or top 1percent, faring better than the remaining 99 percent of earners since the Great Recession’s end. It’s a national narrative playing out in every state.

Income inequality is expanding in Florida, with the highest earners accounting for almost 69 percentof totalincomegrowth inthestateoverthepast three decades, says a new report from aWashington, D. C., think tank.

Between 1979 and 2007, the state’s wealthiest residents — the top 1 percent — saw their real incomes rise by almost 219 percent, according to the Economic Policy Institute. The income of the remaining 99 percent of earners, meanwhile, rose 14 percent.

The state’s wealthiest residents also have fared muchbetter since the end of the GreatRecession.

Between 2009 and 2011, their real income grew by 9.2 percent, while the real income of all other earners in the state fell by 2.4 percent, said EPI, a liberal, pro- worker advocacy group.

EPI estimates that, today, Florida’s wealthiest 1 percent hold about one- quarter of all income in the state. In1979, they held a little more than12 percent. In Florida, the top1percent has a minimum annual income— fromwork, investments, rentalproperties and other sources— of almost $ 337,000.

The “1 percent economy is not just a national story,” said study author Estelle Sommeiller, “but is evident in every state and every region.”

Liberal and progressive groups are pushing to make income inequality an issue in the 2014 midtermelections. TheyalsowantCongress to raise the minimumwage to $ 10.10 an hour.

Advocacy groups use the income gap as an argument for raising the national minimum wage to $ 10.10 an hour. They point out that the current rate of$ 7.25anhourisworth less todaythanitwas inthe late1960s. Florida’sminimumwage is $ 7.93 anhour.

Last week, the nonpartisan Congressional Budget Office said abumpin theminimumwagewould havemixedresults. TheCBOsaid itwould lift about 900,000 families out of poverty and help more than 16 million low- wage workers, but it could also reduce employment by 500,000workers by 2016.