Bay Area Has Highest Income Inequality in America
AGENDA 21 RADIO
BY CHRISS STREET, NEWPORT BEACH, CA
Brookings Institution research reveals that the Bay Area has the highest income inequality levels in the United States.
The Brookings Institution develops income inequality multiples for America’s 100 largest metropolitan areas by dividing the income earnings of the top 5 percent of households, by the income earnings of the lowest 20 percent of households.
In 2014, the San Francisco metropolitan area was the only Northern California region to be in the nation’s top 10 for income inequality. With the top 5 percent of households making an average of $353,483 and the lowest 20 percent of households making $31,761, the income inequality ratio was 11.1, the third highest income inequality in America.
Two years later in 2016, San Francisco’s income inequality was still the third highest at a ratio of 11. But the San Jose metropolitan area had jumped from the 17th highest rate of income inequality in 2014 to the 6th highest rate in 2016. With the top 5 percent of households making an average income of $428,363 and the lowest 20 percent of households making an average income of 40,807, the income inequality ratio was 10.5.
The San Jose metropolitan area’s top 5 percent of household incomes were second only to Bridgeport, Ct. with a household income average of $485,657. But San Jose’s lowest 20 percent, was the highest average metropolitan household incomes for the nation’s lowest 20 percent of household incomes.
The Bay Area’s combined two metropolitan areas when encompass the counties of San Francisco, San Mateo, Alameda, Contra Costa Marin Counties and Santa Clara. With a combined income inequality ratio is about 10.8, there are no two adjoining metropolitan areas that come anywhere close to the inequality of the Bay Area. The gap between the highest earning group and the lowest group of earners expanded by a stunning $54,000.
The Brookings Metropolitan Policy Program stated study’s goal was to test the social justice warrior theories of Stanford University economist Raj Chetty. He claims that the difference in household income inequality is the result of white male tech innovators that dominate the top 5 percent of income households, who pass income determining STEM (science, technology, engineering and math) skills to their children. According to Chetty:
“We find that there are many “lost Einstein’s” – women, minorities, and children from low-income families who would have had high-impact discoveries had they been exposed to innovation while growing up.”
In a hilarious response to a 2016 Republican Presidential Primary debate question regarding Brookings research regarding where income inequality comes from; Senator Ran Paul (R-KY) replied that it is comes from cities with Democrat Mayors that advance progressive policies on issues such as wages, education, and affordable housing that end up being economically counterproductive for the poor.
The answer triggered a huge blowback by the progressive-dominated media. But the PolitiFact truth-o-meter found the of the Brooking’s study’s 10 most unequal cities, 9 had Democratic mayors including “Atlanta, San Francisco, Boston, Washington, New York, Dallas, Chicago, Los Angeles, and Minneapolis. Only Miami, has a Republican mayor.”
By contrast, PolitiFact truth-o-meter found that 5 of the 10 most income equal cities have Republican mayors including “Albuquerque, Oklahoma City, Mesa, Ariz.; Colorado Springs, and Virginia Beach. Three have nonpartisan mayor including Raleigh, Las Vegas and Arlington; while Columbus and Nashville have Democrat mayors.
