Income gap between Florida's haves and have-nots widens

Income inequality is on the rise in Florida, and likely to grow wider as the economy falters.

That's the conclusion of a 50-state report distributed jointly Tuesday by the Economic Policy Institute and the Center on Budget and Policy Priorities. According to the two think tanks in Washington, D.C., the income gap between Florida's richest and poorest families is the country's 15th widest, while the gap between upper-income and middle-class families is greater in only six other states.

Inequality is nothing new, especially in a free-market economy where public support for government spending and taxation is grudging. But the report's analysis of census statistics shows the situation for struggling families may worsen. "Low- and moderate-income families in Florida didn't benefit from the recent economic expansion and are ill-prepared to weather the coming economic downturn," co-author Elizabeth McNichol said.

Why the gaps

are expanding

• Worker wages are stagnant, due to weakened unions, rising immigration, jobs moving to cheaper markets overseas

• Investment income is growing

• Government policies such as deregulation, free-trade agreements, shrinking benefits for low-income families, tax policies that favor high-income people

What states could do to bridge the gap

• Raise the minimum wage

• Increase public spending on education

• Expand unemployment insurance, especially important as the economy worsens

• Rely less on taxes that hit lower-income families hardest and more on ones that place a larger burden on upper-income families

Poorest families lag over past decade

The average family income in Florida between 2004 and 2006, as indicated below, shows the poorest families lost ground over the past decade while the wealthiest families gained disproportionately.

Bottom 20 percent

Income: $17,441

–$5 from late '90s

Middle 20 percent

Income: $47,062

+$1,710 from late '90s

Top 20 percent

Income: $130,840

+$17,499 from late '90s

Top 5 percent

Income: $220,373

+$39,934 from late '90s

Source: Economic Policy Institute and Center on Budget and Policy Priorities. Figures reflect the value of family incomes after federal taxes have been paid.

Comments on this article

by Richard	Apr 11, 2008 2:08 PM
... and as the rich get richer and the poor get poorer our high school graduation rate is 60%, if you're lucky. Enrich your children and enrich yourself.

by ken	Apr 11, 2008 1:24 PM
Lets see...MBA BBA 20+yrs experience in my field...multiple professional certifications (at my expense!)...No job now for 4+ years despite 100s of applications...Oh, yeah, I am just over 50...! Does this qualify me as one of the

by GREGG	Apr 11, 2008 1:24 PM
I am sick of people assuming only republicans have money. All of hollywood has money, the Obamas have money and they do not feel the need to "equal things out" by giving it away You can not hurt the rich. They pass the cost on to consumer

by Tami	Apr 10, 2008 7:36 PM
It's not that americans don't want to work, it's just that they don't want to do the hard work for $8 indefinately like the illegals do.

by Pete	Apr 10, 2008 5:41 PM
Robert, sounds like you need a lesson on the difference between sewing and sowing. Success without spelling, hmmm.

by Jack	Apr 10, 2008 5:29 PM
Most "haves'" ancestors worked hard, meaning that "haves" were generally born into opportunity. The "haves" keep the money for themselves and their friends. Also, most haves become arrogant, believing that their suc

by Scott Hood	Apr 10, 2008 5:28 PM
I've lived in San Antonio before moving here and both share many similarities. Both have over 1M people and are too dependant upon tourism. Want change? Start at the top by electing officials pro-business vice the flood of service related

by JT	Apr 10, 2008 5:21 PM
Illegal immigration driving down wages of the working class is the biggest factor due to Florida's service economy. Without this wages would be higher and the rich would be paying more to be served. Unfortunately, Democrats won't have that.

by Richard	Apr 10, 2008 5:11 PM
Sorry guys, the hard workers deserve to have, and the lazy one deserve to not. Look at the immigrants here legally.Many have shown that through HARD WORK they can achieve great success. If you ask for gov't asistnce, then you deserve what you

by Sick of it all	Apr 10, 2008 5:06 PM
I was a pion in the Mtg boom a few yrs ago. I saw a loan in which the applicant made $2 mil+/year-that person received a $420,000.00 tax REFUND that yr. They were buying a $3 mil 2nd home. I made less than $20k that year and I OWED $700. Fa

by yvette	Apr 10, 2008 4:53 PM
There is much generalization in these comments. The 'have nots' don't work as hard as the 'haves'. The 'have nots' make good choices; while the 'haves' made all good choices. Some 'haves' in

by Harry	Apr 10, 2008 4:53 PM
This isn't a "Florida" issue/problem-its a National one which is the result of 14 years of Republican, pro-rich/pro-business policies which have left the middle & lower class gutted and neglected, all for Wall Street

by chris	Apr 10, 2008 4:46 PM
Robert forgets those who win the ovarian lottery like Paris Hilton, et al. It's easy to finish first when grandpa puts you three feet from the finish line. I guarantee most of us work harder and therefore deserve more under your line of reasonin

by Sal	Apr 10, 2008 4:30 PM
One last note, never stop adapting because the world will not stop changing. Train yourself, prepare yourself, save your money and make your own way!

by Sal	Apr 10, 2008 4:29 PM
Where else in the world other than the U.S. do the "have nots" live in houses they own, with cable TV, internet, heating and cooling? They may not have as much, but their standard of living is high compared to the rest of the world!

by Sal	Apr 10, 2008 4:29 PM
It is a free economy and a free world! Get out there and make your way. Do not expect the government to pave the way for upward mobility, because they won't and can't. For those that can't make it we have social service to help. Don

by kitty	Apr 10, 2008 4:16 PM
Clark, what's wrong with it is the people working for those entrepreneurs are losing ground every day. Chances are those entrepreneurs are reaping a share of their employees' tax dollars in the form of corporate welfare.

by vdk	Apr 10, 2008 4:16 PM
David, the haves do more for the have nots by paying more taxes on their property, more sales taxes on the things they buy, and use less government services. Would a family with children making over 100K be considered haves? Where's the line a

by Jay	Apr 10, 2008 4:15 PM
Lower taxes on fuel and property. I'm spending $300 a month just for taxes and insurance on a 900sqf house. Then add another $150 a month for gas.

by Kurt	Apr 10, 2008 4:08 PM
Just another example along with our health care, the neglect and decay of our infrastructure how we are steadily creeping into third world status. Wake up!

by deep thought	Apr 10, 2008 4:08 PM
it's not they work harder,they exploit the workers,they get the tax breaks,(read oil)and developers buy/kick out the poor/elderly. then they run econo down and get bailed out,but not the poor,where's person resp then? pls edu sel

by GrimReaper	Apr 10, 2008 4:04 PM
JAIL anyone who hires illegals problem solved for the poor look at all the bills that will not pass because they want CHEEP illegal workers .....

by Jeff	Apr 10, 2008 11:16 AM
The solution to Florida's problem is not raising minimum wage, more spending, etc. The problem is that there are relatively few big busineses that call Florida home (vs CA/TX). We should foster organic innovation rather than buying bio

by Robert	Apr 10, 2008 10:57 AM
Never said they were losers. They need to do the same things that other business people do to get better. The government cannot mandate it, but they can offer incentives to business owners/starters etc. But that would be helping the "rich".

by Jimbo	Apr 9, 2008 2:43 PM
Oh boy!Robert,Clark,Leon,David just don't get it.Income inequality in the long run costs the haves as the have nots fall into grinding poverty. Help them be productive.Don't just label them as losers or you will also lose as society falls a

by Loretha	Apr 9, 2008 2:25 PM
In FLorida it's who you know when it comes to business. Hard work is not enough. The same folks in government/private circles keep working together. It's who you know or what race you are.

by Robert	Apr 9, 2008 1:52 PM
The problem is wealth distribution, if it does not remain in balance the have nots cannot buy from the haves and this is where we have a serious problem like uh, the recession we are about to fall in to.It's basic economics.

by Robert	Apr 9, 2008 1:52 PM
Folks like Betty need to get a clue. The haves get where they are because of hard work, good decision and maybe a little luck!! The have nots have chosen their direction and they reap what they sew. Success is available to all with the right choices!

by Laura	Apr 9, 2008 1:52 PM
Clark sees no problem with a society where you are either very rich or very poor--with no middle class. I say let's try it: I'll be the super rich landlord and Clark can be my servant -- working 18 hour days, 7 days a we

by Clark	Apr 9, 2008 11:05 AM
Why is it automatically assumed that a widening gap is a bad thing? Maybe it indicates only that the entrepreneurs are finding Florida a great place to do business. And what's wrong with that?

by Leon	Apr 9, 2008 10:32 AM
socialistic nonesense. What is needed is lower taxes, less government. Low income people live well in Florida. I am waiting on the statistic of the percentage of people without health insurance who have cell phones.

by David	Apr 9, 2008 10:30 AM
How about a sentence or two on personal responsibility? For the haves to personally do more for the have nots. For the have nots to be greater self starters and work harder for success. I've been in both groups and both required much of me.

by Betty	Apr 9, 2008 9:42 AM
Republican leadership - changing the middle class to the working poor one Legislative session at a time!