Data released by the Federal Reserve (US Central Bank) on Monday showed that income inequality in the United States diminished over the first three years of President Donald Trump's term, as rising incomes and declining unemployment boosted the gains for low-income and less-educated families.
In its latest survey of consumers 'financial conditions, which it conducts every 3 years, the Reserve Board found that wealth inequality did not change significantly, with 10% of the wealthiest families controlling about 71% of families' fortunes in 2019, compared to 2016.
But the Federal Reserve said that this period witnessed relatively greater gains in wealth for black families and families of Hispanic descent, as the average net wealth of black families increased by 33% and families of Hispanic descent by 65%, compared with an average increase of 3% on average for families from eggs.
However, the gap remained large, as the average income for white families was about $ 188,000, or about 8 times higher than the average income for black families, which reached $ 24,000, and more than 5 times higher than the average income for Hispanic families, which reached 36 thousand dollars.
According to the survey, non-white families who entered the period with fewer fortunes and no college education increased the incomes faster than others.
The Fed said the decline in average income was generally due to lower income for the highest earners and those dependent on more volatile business and dividends.
The survey was conducted last year before the coronavirus pandemic ended the surge and pushed the United States into a recession that could jeopardize some of the gains documented in the report.
Poverty
It is noteworthy that poverty rates among Americans remain uneven. While 24% of blacks live below the poverty line, this percentage is only 12% at the national level.
22% of American children live below the poverty line, and this percentage drops to 12% among white children, and rises among black children to 36%.
And the Federal Statistical Office data had indicated earlier that 25% of black families belong to the category of the working poor, whose annual income ranges between 15 thousand and 35 thousand dollars.
The percentage of black families from the working middle class is 40%, and their annual income ranges between 35 thousand and 100 thousand dollars.
Twelve percent of black families belong to the upper middle class, earning between $ 100,000 and $ 200,000 annually, while only 2% of black families belong to wealthy families whose annual income exceeds $ 200,000.