The Evolving Landscape of Wealth in America
While many Americans dream of joining the ranks of the wealthy, the reality is that the income threshold for being considered rich varies significantly depending on location. A new study by GoBankingRates.com reveals that it takes considerably more income to join the top 5% of earners than just a few years ago.
The study analyzed state income data from 2017 to 2022 and found that the easiest place to reach the top of the income ladder is West Virginia, where an annual income of $329,620 qualifies you as a top earner. However, in Washington D.C., you'll need to earn more than twice that amount, at $719,253, to join the top 5%.
The study also highlights the growing income inequality in the United States. While the nation's top-earning households are gaining a greater share of income, the bottom 20% of earners have seen their overall wealth share decrease. This trend is attributed to the pandemic stimulus efforts, which disproportionately benefited the wealthy.
The study also found that the amount needed to be considered among the top earners has increased significantly in some states, particularly in Idaho, Nevada, and Washington. This is attributed to changes in their economies, such as the rise of the tech industry in Seattle and the legalization of gambling in Nevada.
Overall, the study paints a picture of a changing landscape of wealth in America, where the gap between the rich and the poor is widening and the cost of living in certain areas is making it increasingly difficult to join the ranks of the wealthy.