Income gap less in Ohio but growing everywhere

Analyst: Ohio overall has struggled with job growth, and too many people are stuck in lower-end jobs.
TNS Regional News
Feb 19, 2014

 

The income gap between the top 1 percent of earners and everyone else is not as large in Ohio as in some East Coast states, but a new report shows it’s getting wider everywhere.

The Economic Analysis and Research Network, a group that supports issues such as increased investment in education and a higher minimum wage, found that the share of income held by the top 1 percent declined in 49 states between 1928 and 1979, but there has since been a sharp reversal.

“The rise in inequality … is not just a story of those in the financial sector in the greater New York City metropolitan area reaping outsized rewards from speculation in financial markets,” the report said.

In 2011, the report said the average income for the top 1 percent in Ohio was $699,693, compared with $38,583 for the other 99 percent — an 18-to-1 ratio that ranks Ohio 29th in the nation. Connecticut and New York have ratios above 40 to 1.

In 1979, the top 1 percent in Ohio earned 9 percent of income in the state, a figure that grew to 15.9 percent in 2007.

That time period, the report said, runs between starts and ends of peak business cycles.

“To the degree we enjoy prosperity, it’s not being widely shared,” said Zach Schiller, research director for the liberal Policy Matters Ohio. “In having a successful economy, ... you want large numbers of people to be able to share in a growing economy.”

From 1979 to 2007, income growth in Ohio for the top 1 percent was 111 percent, compared with 11.3 percent for the bottom 99 percent. That means 49 percent of all income growth over that time went to the top earners.

Meanwhile, in the wake of the Great Recession from 2009-11, the top 1 percent in Ohio saw income growth of nearly 15 percent, seventh highest in the nation, while incomes for the other 99 percent fell 0.4 percent.

“The point is not to say that the income at the top 1 percent grew four times as much as it should have,” Schiller said. “The point is that the economy has grown and a very substantial number of people aren’t benefiting.”

Greg Lawson, policy analyst for the conservative Buckeye Institute, said the study likely overstates the issue because it does not take into account pensions, health benefits and other nontaxable benefits.

“There is this obsessive focus on income inequality as opposed to discussion about making sure we have the opportunity for people to move up the economic ladder,” he said.

The problem, he said, is Ohio overall has struggled with job growth, and too many people are stuck in lower-end jobs.

“We need to look at tax policy problems and labor policy problems that hit at multiple levels of government,” Lawson said. “We need to be looking at, as much as possible, deregulation and a pro-growth tax code to get jobs created.”

Schiller sees the report as a reason to stop implementing state income-tax cuts that “will further reduce by a greater amount what the top 1 percent is paying.”

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By Jim Siegel - The Columbus Dispatch, Ohio (MCT)

©2014 The Columbus Dispatch (Columbus, Ohio)

Visit The Columbus Dispatch (Columbus, Ohio) at www.dispatch.com

Distributed by MCT Information Services

Comments

truckin

I just love the phrase... STUCK!
B.S. more of a choice thing in my opinion. THE END

Contango

Re: "The share of income held by the top 1 percent declined in 49 states between 1928 and 1979, but there has since been a sharp reversal."

One word: Financials

KURTje

Errr. Keep watching. (help pay for more services i.e. schools, police, fire....we are broke)

all fact or all...

Maybe if republicans would get off their high horse and pass a jobs bill more people would be working. Stop spending their time keeping the rich from paying their fair share of taxes. The GOP is breeding a culture of greed and coruption and laughing at the little people all the way to the bank..or should I say off shore accounts.

truckin

You are way off..
First didn't you ever hope to start a business, work hard, take a risk and make it big??
Go to school to learn a trade or skill in which you could become profitable?
Determine rich??
Because i am sorry, the little dirty secret is "the RICH" and the words "millionaires and billionaires" are just code for ANYONE WHO HAS DONE WELL for THEMSELVES..
You act like they stole it. Talk about stealing.. Be a congressman go to Washington middle class, then with all the insider secrets, few years later come back snot rich? figure that?
Rich do pay most of the taxes collected as it is.
Have once you known of a welfare recpt. that has ever walked up to a rich guys house and offered a thank-you for there apartment and food, by offering to rake his leaves. Where do you think the money comes from.
The government doesn't just create it, they TAKE it! and then hand it out. Many rich as you call it are just folks like surgeons who fix bad hearts etc. That takes a special nitch and person to do.. I am sorry i do not want my surgeon to be worried about his car pyt. because folks like you want more of his earnings.
.. a society of takers...running around looking for handouts. You people that blame rep's for everything NEVER take blame for your worthless life.
No on told many folks to go out and do drugs, have more children than they could afford, quit jobs for no reason, flunk out in school..
Man i could go on and on about how many people fail then blame somone else...
BUT your answer is get the one's who succeeded.. Pathetic!
How would you feel if everyone called you greedy just because you made it???
Look at statistics. republicains/conservatives donate much more to charity the dem's. Fact
You and many like you have been brained washed that it's not your fault.. Sure you may never be a millionaire, but you could still straighten your life out enough, move, learn SOMETHING??? and succeed , other than sit and point fingers. But i am here to tell you, with government at every corner BLOCKING success for one reason or another it won't be easy.
I am done. I am sure this is going thru one ear and out the others.

methodman

I had no idea. I can now say I am informed and educated. Lol. Great comment. My millionaire heart surgeon thanks you.

truckin

Why don't you JUST thank your surgeon??? Not sarcastically throw in Millionaire..who cares...you needed him.
if you hate the fact that you need him and he makes big bucks from you..
figure out a way to create something,invent something, service/build something that the millionaire may want/need/desire....in which you can "get" some of his money???
or is it just easier to sit and point fingers?..
and remember you may think and want... but your government CAN NOT force the surgeon to use his talent on you for free.

methodman

Lol. You're all kinds of smart aren't you? Tell Elvis I said hi. Remember we're watching you and monitoring your comments here.

In my opinon

Can't make a few on here understand you are allowed to have your opinion. Also that millionaire's don't pay anywhere near the percentage of taxes dollar for dollar. If you don't agree with what they say you are automatically wrong. Keep defending your opinion.

Contango

Re: "millionaire's don't pay anywhere near the percentage of taxes dollar for dollar"

Why, how much do they pay?

Dr. Information

Im always astonished how these people know what millionaires pay in taxes. Do these people work for the IRS, know every millionaire and stalk them. Again, more left winging bs backed by opinion.

Contango

Re: "pass a jobs bill,"

The first "shovel-ready" stimulus tax money was wasted. And Pres. Obama wants another? lol

"Sh..shovel-ready was not as...ah...shovel-ready as we expected."

- Pres. Obama

Want a "jobs bill"? Allow the Keystone XL pipeline to be built. H*ll, even unions want it!

truckin

I am not even what many would call rich, BUT i still constantly hear things like:
Must be nice..
just because i can take a couple vacations a yr. or maybe own a boat, and can go to the grocery store WITHOUT a calculator/budget.
I can only imagine the "under the breathe" words folks hear who can afford a boat which they go to the Bahamas with. Heck i still have to go carnival??
The PERFECT Jobs bill:
Have the government open a plastic shovel plant, then pass a bill outlawing steel shovels!

Contango

Old saying:

You could make all income equal, but you couldn't make all spending equal.

Read "Rich Dad, Poor Dad"

The poor tend to buy stuff that depreciates: Wal-Mart crap, cars, et. al

The rich tend to buy stuff that appreciates: Bank cds, stocks, bonds, real estate, et. al.

If someone saves and invests for their retirement that makes 'em the bad guy or girl?

Sh*t, the govt. could redistribute all the wealth in the U.S. and the poor would be whining again that they were broke within six mos.!

Besides that, the "poor" in this country with their TVs, cars, smart phones, et. al, live one h*ll of lot better than the "poor" in say Haiti!

In my opinon

What, NO mention of the middle class? Oh yeah we are disappearing!!
All I read was rich and poor.

Contango

Re: "we are disappearing!!"

Any retirement savings or just buying crap?

In my opinon

Yeah, run a pipe line through the heartland of America that will carries the dirtiest oil on earth to be refined and sent to China and other foreign countries. It won't create a lot of permanent jobs.

Contango

Re: "It won't create a lot of permanent jobs."

So why do unions want it?

rbenn

@all factless or all the koolaid is strong with you, Take a look at the dems supporters and see who gives them all their money. And by the way the richest people in Washington are democrats!! You really need to research before you make stupid baseless comments.

Contango

Re: "dems supporters,"

YOUR rich, fat cat special interest group; MY caring, for-the-people lobbying organization.

Remember: Bernie Madoff was a MAJOR Dem campaign money supporter. :)

Like I've written elsewhere:

I know seniors who need work done around the house and would pay a kid to do it.

H*ll, during the Great Depression, out of town transients would walk the streets of Norwalk, stopping by houses asking for work in return for a meal.

We've become a nation of whiners.

The world will soon be kicking our behinds.

rbenn

Hers a good sample of where the money goes https://www.opensecrets.org/orgs...

Contango

Sadly, over the last century, the Fed govt. have become extortionists:

Give us campaign cash or we'll pass rules and regs that will adversely affect your business.

THAT'S why lobbying has become such a big business.

It's a protection racket perpetrated by the govt. mobsters.

So who should one support; the Corleone or the Barzini crime families?

In my opinon

@rben...Yeah, and who gave the wealthy more tax breaks to make them wealthier, BUSH..Just because you say something doesn't mean you are right. It's their opinion.

rbenn

Funny you fail to mention all those billions Obama gave to the rich in the stimulus package. And really blaming bush still? I never supported his policies either, but obummer has 5 years under his belt so its his economy now

In my opinon

Yes, Obama did give 7 billion in stimulas but Bush also gave 7 billion before he left office and left a defecite of 10 trillion from the unfunded wars for Obama to absorb. We could nit pick all day. It's just my opinion as you have yours.

Contango

Re: "left a defecate (sic) of 10 trillion from the unfunded wars"

"$10 trillion"? Where'd ya get the figure?

Did Congressional Democrats vote to support the wars?

rbenn

As seen by the climate change fanatics who are poised to spend millions on democrats to promote this unsubstantiated faux science.

Contango

Re: "climate change,"

I refuse to use that term . Global warming works for me.

It was called "Soviet word magic":

Merely change the name of a failed program or concept.

It helps to give the illusion to the proletariat that it's 'something' different or new-and-improved.

They didn't ever fix sh*t, they just changed the name.

I'm leaning toward voting for Michael Corleone for Pres. He has a 'nice' face. :)

Besides, those Barzinis are nuthin' but crooks!

Cliff Cannon

@ Contango : " It helps to give the illusion to the proletariat that it's 'something' different or new-and-improved." Agreed.


After the Russian disaster Napoleon wanted the high kicking female dancers of " L'Opera " to stop wearing panties,in an effort to get the publics mind off the real problem.( him ) Thankfully, they refused. However, political illusions of ' something different ' have been around a long time,haven't they ?


Apart from insisting upon a return of the vaunted American work ethic, coupled with inspiring the driven dreamers who never quit till their dreams are accomplished. I am not sure, what can be done to fix this terrible problem of income disparity.


I do add this however: If one works 40 hours at minimum wage in this country. They will rank, on a world wide basis in the top 10 percent of all people for wealth. Yet,in America they are looked upon as poor. Is that unbelievable or what ? ( makes you extremely grateful to be an American, as opposed to living in Haiti as you mentioned,don't it ? )

P.S. Found your comments on the " Register " side regarding 'the best President ever' very interesting. I even commented there regarding your thought's on Andrew Jackson and anxiously await your reply.

Contango

Re: "I am not sure, what can be done to fix this terrible problem of income disparity."

This is a world-wide phenomena, not just a U.S. one. The contrasts are even greater elsewhere.

See: "Two-Track Future Imperils Global Growth"

http://online.wsj.com/news/artic...

(Copy and paste the title into Google and click on a link to get past the filters.)

"The Truth About the 'One Percent':

"The typical 'rich' person today is someone who works for a salary and accumulates stocks and bonds through savings, retirement plans and (for business executives) stock options."

http://online.wsj.com/news/artic...

We may in a time of a permanent 'underclass.'

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