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Kris
August 30th, 2007, 05:35 AM
August 29, 2007
New York’s Gap Between Rich and Poor Is Nation’s Widest, Census Says
By SAM ROBERTS

From 2005 to 2006, the rich grew richer in the New York region and the poor, over all, remained poor, producing the widest income gap of any major metropolitan area, according to census figures released yesterday.

In the counties of New York, New Jersey and Connecticut that make up the metropolitan area, the top one-fifth of earners made nearly 20 times what the bottom fifth earned, according to the first such detailed measure of local income inequality by the Census Bureau.

“New York stands out, ahead of Los Angeles, San Francisco and other large metros, which attract both high- and low-income people,” said William H. Frey, a demographer at the Brookings Institution.

In Manhattan, the disparity was especially wide. The wealthiest 20 percent of Manhattanites made nearly 40 times more than the poorest 20 percent — $351,333, on average, compared with $8,855, a bigger gap than in any other county.

Even so, Manhattan’s wealthiest were outdone by residents of suburban Fairfield County, Conn. There, the top fifth made $362,103, and the top 5 percent earned $746,726. That compared with $710,116 for the top 5 percent of Manhattan earners and $415,442 for the top 5 percent in the New York region as a whole — also the highest of any major metropolitan area.

In New York City, the actual number of poor people counted by the census increased from 2005 to 2006, in part because the latest tally included residents of shelters and similar group housing. But among families and their children — categories not affected by the counting change — the poverty rate appeared to have declined slightly since a peak in 2004.

In Manhattan, the poverty rate among children dropped sharply — to 27 percent from 32.5 percent. City officials boasted about the decline. But one reason for it may be that poor children’s parents can no longer afford housing in Manhattan, and they are being replaced by wealthier youngsters.

Over all, the poverty rate in the city was 19.1 percent, about where it had been for the previous six years, which meant that about one in five New Yorkers lived below the official poverty line, defined by the federal government as $20,650 for a family of four.

Median income in the city barely budged, to $46,480 in 2006, statistically only slightly higher than the adjusted $44,835 recorded the year before.

Reflecting the region’s vast income disparities, New York was again the only state in which both the poverty rate and the median household income surpassed the national average.

New Jersey had the second highest household income, at $64,470, behind Maryland. But the poverty rate in Camden, N.J., at 35.6 percent, was also among the nation’s highest.

On a different measure, median family income, Connecticut led the nation at $78,154. But the poverty rate in Hartford was 30.3 percent.

In the South Bronx, just across the Harlem River from Manhattan, the poverty rate among children was 54 percent.

At $59,281, the metropolitan area slipped from 9th to 10th in median household income, with Seattle leapfrogging ahead. Metropolitan New York ranked 4th among whites, 10th among blacks, 12th among Asians and 25th among Hispanics in median income.

New York City’s steady poverty rate was in contrast to a national decline. Analysts as diverse as Steve Malanga of the Manhattan Institute, a conservative research group, and David R. Jones of the Community Service Society, a liberal advocacy group, agreed that competition for low-wage jobs in the city, many of them filled by immigrants, depressed their income.

“We haven’t seen much movement at all in terms of diminishing poverty,” said Mr. Jones, the society’s president.

Mr. Malanga, a senior fellow at the institute, cited some declines — in the poverty rate for families, to 16.3 percent in 2006 from 16.7 percent the year before, and among households headed by women, to 30.4 percent from 31.2 percent. But he agreed that the city’s “economic rebound has tended to be at the high end, and our poverty levels are not going down as fast as at the national level.”

Commenting on the decline in the number of poor people in Manhattan, Joel Berg, executive director of the New York City Coalition Against Hunger, said, “It is clear that low- and middle-income New Yorkers are being priced out of Manhattan and that poor people are being driven to the outer boroughs and the suburbs.”

The poverty rate rose in Rockland and Putnam Counties, but it was unclear how much of the increase was attributable to the change in how the numbers were counted.

The census also measured the proportion of people without health insurance coverage. The number declined in New York, to 13.2 percent, and in Connecticut, to 10.4 percent, and rose slightly in New Jersey, to 14.6 percent.

http://graphics8.nytimes.com/images/2007/08/29/nyregion/povertylarge.jpg

Copyright 2007 The New York Times Company

ablarc
August 30th, 2007, 07:16 AM
If they looked at the top and bottom 1%, the disparity ratio would probably be in the hundreds.

JerseyBrett
September 4th, 2007, 03:37 AM
Very complicated issue. One reason for the widening inequality of course has to deal with immigration. The percentage of foreign born residents in New Jersey is 20%. I don't know what the numbers are in in NYC and Nassau but I suspect they are very high. Next, you have to look at the make-up of the immigrants. I would also suspect that they are mostly low-skilled workers, many without a high school degree. Of course, there are numerous exceptions and the New York area continues to attract the best and brightest from around the world. However, when you admit a large number of low skilled workers into a very advanced economy (can you think of many as advanced at the New York area?), income inequality of going to increase.

Also, I would like to look at the illegitimacy ratios. I'm not sure what they are in the New York Metro area but nationally 35% of children are born out of wedlock. This has been concentrated almost entirely at the lower end of the income scale. Women with college degrees have an illegitimacy ratios that is at 1948 levels. If you want to hear something incredibly scary, take NYC: In 1943, the illegitimacy rate was 3%. By 1993, the illegitimacy rate rose to 45%!! That is an astounding increase. I'm not sure what the 2007 levels are but I assume they are high and are concentrated at the lower end of the income scale. This has been occuring since the 1960s and has been concentrated in Western societies. The statistics in Great Britain are worse than the US.

Solutions: Focus on highly skilled immigration. Quick anecdote: I was in the Short Hills Mall (very affluent) the other day in NJ and noticed the significant increase in the percentage of Asian customers. This really got me thinking of the types of immigrants who are really excelling in our system. I would like the Federal government to significantly increase the number of visas for highly-skilled immigrants and significantly decrease the number of visas for low-skilled immigrants. However, I do have issues with the article when it says that low-skilled immigrants account entirely for the lack of income gains for people at the lower end of the income spectrum. Nationally, there is still a huge percentage of males, aged 16-24 not in the labor force, not looking for work. That is unprecedented in any point in American history and first started to occur in the 1970s.

I currently live in NJ (but moving to NYC in October!) and it really is a state of contrasts. Counties such as Morris, Bergen, Somerset, Hunterdon, Western Essex, Western Passaic, Western Union, most of Middlesex are among the wealthiest areas in the country when you look at per capita income. They are mostly compromised of native born and highly skilled immigrants populations. This contrasts with Eastern Essex, Eastern Passaic, most of Hudson, etc.

Finally, I would like to discuss the idea of culture. One aspect of our society that I believe really drives income inequality in Western socities is the idea of self control. Children raised by two parents are able to exercise self control much easier than children raised by single parents. Are there exceptions? Of course. But the data supports the self control divide. This lack of self control is usually carried forward for the remainder of many peoples' lives. Anyways, that is my two cents about a very complicated issues.

212
September 4th, 2007, 08:09 AM
^ About self-control and wealth: Every living human makes big, stupid mistakes. If your family is rich, you can afford quite a few. If your family is poor, you can afford one or two.

JCMAN320
September 12th, 2007, 01:55 AM
Census: Housing costs dominate NJ spending

by Robert Gebeloff and Mary Jo Patterson Wednesday September 12, 2007, 12:22 AM

Deep within an avalanche of statistics unleashed Tuesday by the Census Bureau is an eye-popping estimate: Nearly one in every six home-owning households in New Jersey spent at least 50 percent of its income on housing costs last year.

Fully 17.1 of all New Jersey homeowners used half or more of their income to pay mortgages, property taxes and utilities in 2006, the Census reported. The percentage of householders in that category was up from previous years; in 2005, they represented 15.3 of mortgage holders, in 2004, 13.8.

Fueling the trend were looser lending standards, plus consumer confidence in the ever-rising value of real estate, housing analysts said Tuesday. But because the current housing climate is less robust than it was in 2006, with stagnating prices and tighter credit standards, some of these over-extended homeowners could conceivably lose their homes in the future, analysts said.

"A lot of people are buying too much house. They're willing to spend enormous shares of their income to get all the shelter they want," said James W. Hughes, a Rutgers University professor who closely follows regional economic and housing trends. "None of this bodes well for the economy next year. Within this group are people who are really subprime borrowers, and those whose interest rates will be reset. A lot of people will be at risk."

In New Jersey, where housing costs have been growing faster than income, the share of homeowners spending at least half their income on housing costs is significantly higher than in the U. S overall, the Census found. Nationwide, the figure is 13.9 percent.

That's not surprising, given that the Census ranks New Jersey's median housing costs ($2,130) as the nation's second highest, after California.

These numbers came from the Census Bureau's 2006 American Community Survey, a detailed annual demographic profile of the nation covering everything from how well we speak English to how long we spend getting to work.

Read more in today's Star-Ledger, and at The Star-Ledger's Stat Attack blog.

JerseyBrett
September 12th, 2007, 04:28 PM
There was an article in the WSJ about how home builders are starting to build smaller homes due to stagnating home prices. I believe it stated "the McMansion is starting to make way for the McCottage." I am a strong supporter of open space purchases and the recently passed Highland Protection Act. However, I due admit that they have led to higher home prices. This is one of the consequences of our policies although I would challenge anyone to argue that open space purchases have not been good for the Tri-State area. My family donates money to the Morris Land Conservancy every year.

In the future, I would like to see developers focus on large, big-box and sprawling shopping mall areas such as Rockaway Townsquare, Willowbook, Bridgewater and Paramus. This way, we can promote both economic growth and maintain a high quality of life. This will by no means happen overnight.

lofter1
September 12th, 2007, 11:09 PM
"the McMansion is starting to make way for the McCottage."

Soon we'll be making way for the McHut :cool:

JerseyBrett
September 13th, 2007, 12:00 AM
Hahaha. Hey, the "McHut" essentially describes most studio apartments in Manhattan. It's almost become a right of passage. I'm moving to the Upper East Side in October with my girlfriend and we have found some 1 bedrooms at reasonable prices. For all of the tri-state area's housing troubles, it beats the hell out of Metro London. It seems like the whole of South East England is in a permanent housing crisis.....