Is there a difference between income inequality and wealth inequality?
By EconoFact
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YES
Wealth measures both a family's assets (like home equity or savings) and debts. Unlike income that comes in only when a family member is employed, wealth is a critical store of resources that enables households to deal with unexpected economic shocks — including recent experiences of job loss related to the pandemic. In 2019, the bottom 50% of the U.S. population owned just 1% of the wealth, but earned 15% of total household income. Income inequality has also been on the rise since the 1980s. From 1970 to 2018, the share of aggregate income going to middle-class households fell from 62% to 43% while the share of income going to upper-income households increased from 29% to 48%.
This fact brief is responsive to conversations such as this one.
Sources
Pew Research Trends in US income and wealth inequality
Federal Reserve Bank of St. Louis Has Wealth Inequality in America Changed over Time? Here Are Key Statistics
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