State’s rich/poor gap 2nd-widest in U.S.
Considering how poor the “poorest of the poor” are in Alabama…this isn’t surprising, but it’s still shameful. We need to do more to help alleviate the poverty in our state. There are plenty of organizations trying to get the attention of legislators and the public at-large. We must recognize the drain that this separation puts on our state and the steps we can take to change our circumstance.
The poorest one-fifth of Alabama families averaged a yearly income of $13,280 after federal taxes in the years 2004 through 2006, the lowest in the nation during that time. The national average was $18,116.
After adjusting for inflation, average incomes for the poorest fraction fell 21 percent from 1998-2000, when they averaged $16,070 in 2005 dollars.
The richest one-fifth of state families averaged earnings of $112,804 after federal taxes in 2004-2006, making 8.5 times the average of people in the bottom fraction.
Like Alabama, some other states characterized by high income inequality were in the South and Southwest, where the poorest were very poor.