The 2014 edition of the United States Conference of Mayors brought to light the latest and most pressing matter, income inequality. IHS Global Insight, a worldwide information company, prepared a Conference of Mayors Inequality Report. The report states that the 8,7 million jobs lost during the recession have been regained. The problem is that the new jobs come with a 23 percent lower average wage, compared to the jobs lost during the recession. In real numbers, the average went down from $61,637 to $47,171. That would add up to a total of $93 billion loss for the workers.
We reported recently how the productivity levels increased in the last quarter, but it seems that the wages do not catch up.
“The inequality crisis facing our cities is a threat to our fundamental American values. Reducing income inequality and ensuring opportunity for all is nothing less than the challenge of our times. As mayors, we are on the front lines and we must act now,” said New York City Mayor and Chair of the Mayors’ Cities of Opportunity Task Force Bill de Blasio.
Conference of Mayors Inequality Report shows how income inequality grew since 1975 onward
The report founds its conclusions on data until 2012 the latest. The income growth projections for 2014-2018 indicate a widening income gap. Median household incomes will increase by 2,5 percent in 2014 and 3,8 for each of the next three years. But the average household incomes will rise at a faster pace. For 2014, the median income will rise by 2,7 percent and 4,1 for the next three years.
But income inequality is not an event occurring specifically after this last major economic depression. According to the report, the 20 percent highest-earning households constantly increased their incomes at a faster rate than the 20 percent lowest-earning counterparts. In 1975, the highest earning quintile earned 43.6 percent of the national income and the lowest-earning one made 4.3 percent. In 2012, the rich got richer, with the top 20 percent income makers gaining 51 percent, and the poor getting poorer, with only 3.2 percent of the nation’s income, New York Times reports.
Conference of Mayors Inequality Report made the task force leaders, the Mayor of New York and the Mayor of Boston, think about how to provide a framework for tackling inequality. Boston’s mayor asks how to achieve universal pre-k by 2018. Moreover, he would like to see the homeownership increasing, as rents are higher than what most people can afford.