The Gap Widens, Especially in Tennessee

A report issued yesterday by the Economic Policy Institute and the Center on Budget and Policy Priorities (two think tanks often considered liberal) shows that the income gap has increased significantly in the past two decades:

For the period between the early 1980s and the early 2000s, the report found that the incomes of the top fifth of families grew faster than those of the bottom fifth of families in 38 states. The states where the gap grew the most were Arizona, New York, Massachusetts, Tennessee and New Jersey.

In only one state – Alaska – did income growth for low-income families outpace that of high-income households.

Notice that my home state of Tennessee, which has the nation's sixth largest "top-to-bottom" income ratio, is one of the states where the gap has grown the most. The bottom 20 percent of earners in Tennessee make an average of only $14,303 per year, the nation's sixth lowest average income for the bottom 20 percent. Tennessee's top 5 percent fairs much better, ranking 26th in mean annual income.