Wealth Gap Is Increasing, Study Shows

[Pale Blue Dot]

Source: Science Daily

The rich really are getting richer and the poor are getting poorer, a new University of Michigan study shows.

The study---the most recent available analysis of long-term wealth trends among U.S. households---is based on data from the Panel Study of Income Dynamics, conducted by the U-M Institute for Social Research (ISR) since 1968.

Over the last 20 years, the net worth of the top two percentile of American families nearly doubled, from $1,071,000 in 1984 to $2,100,500 in 2005. But the poorest quarter of American families lost ground over the same period, with their 2005 net worth below their 1984 net worth, measured in constant 2005 dollars.

The poorest ten percent of families actually had a negative net worth---more liabilities than assets. The poorest 5 percent of American households had a negative net worth of a little more than $1,000 in 1984, compared to nearly $9,000 in 2005

Read more: http://www.sciencedaily.com/releases/2007/08/070807171936.htm