The Gini coefficient refers to the way money is distributed across a nation, state, or whatever geographic region is in question. The reason for the Gini coefficient in the first place is for use of proof that there is significant wealth inequality.
If a country has a Gini coefficient of zero, then according to the measurement of wealth distribution, the country has perfect equality in terms of financial prosperity. If a country’s Gini coefficient is positive one, then the country has inequality among its residents.
U.S. Income Inequality Worsens,
Widening To A New Gap
September 26, 2019
The gap between the richest and the poorest U.S. households is now the largest it’s been in the past 50 years — despite the median U.S. income hitting a new record in 2018, according to new data from the U.S. Census Bureau.
U.S. income inequality was “significantly higher” in 2018 than in 2017, the federal agency says in its latest American Community Survey report. The last time a change in the metric was deemed statistically significant was when it grew from 2012-2013.
While many states didn’t see a change in income inequality last year, the income gap grew wider in nine states: Alabama, Arkansas, California, Kansas, Nebraska, New Hampshire, New Mexico, Texas and Virginia.
The disparity grew despite a surging national economy that has seen low unemployment and more than 10 years of consecutive GDP growth.
The most troubling thing about the new report, says William M. Rodgers III, a professor of public policy and chief economist at the Heldrich Center at Rutgers University, is that it “clearly illustrates the inability of the current economic expansion, the longest on record, to lessen inequality.”