The United States has some of the highest levels of income and wealth inequality in the world. U.S. Federal Reserve data shows that the wealthiest 10% of Americans control $93.8 trillion, more than double the $40.3 trillion in the hands of the remaining 90% of Americans.
The income and wealth divide only appears to be growing wider. A January 2020 report published by the Pew Research Center found that over the last four decades, income growth for the top 5% of families by earnings has far outpaced income growth for families in lower income strata.
Income inequality varies considerably within the United States, and in some cities, the problem is far more pronounced.
Using data from the U.S. Census Bureau’s 2019 American Community Survey, 24/7 Wall St. identified the 50 U.S. metro areas with the widest income gaps. Metropolitan areas are ranked by their Gini coefficient, a measure of income inequality based on the distribution of income across a population on a 0 to 1 scale — 0 representing perfect equality and 1 representing the highest possible level of inequality.
Among the metro areas on this list, Gini scores are as high as 0.541 — well above the national Gini coefficient of 0.481. The majority of metro areas on this list are located in the South, including six in Louisiana and five in each Florida and Georgia.
Causes behind rising inequality are complex and varied. A report published by the National Bureau of Economic Research ties the rising disparity to a range of economic factors, including globalization, technological advancement, a stagnant minimum wage, and the decline of labor unions.