Rich man, poor man: report shows gap growing in NJ

| 29 Sep 2011 | 08:03

    TRENTON — The income gap between New Jersey’s richest and poorest residents widened dramatically over the last two decades, according to a report that also shows the top 5 percent in the Garden State had the greatest percentage increase in income nationwide. It states that average income of the wealthiest 5 percent of New Jersey residents skyrocketed 132 percent from 1980-82, when it was $115,939, to 2001-03, when it was $268,889. For the top 20 percent of New Jersey residents, average income rose nearly 79 percent, from $85,802 in 1980-82 to $153,362 in 2000-03. In contrast, average income for the lowest 20 percent rose just 25 percent over that span, from $16,397 to $20,391; for the middle 20 percent, average income rose 42 percent, from $42,145 to $59,929. The state-by-state report, called “Pulling Apart,” is based on an analysis of U.S. Census Bureau data by two Washington-based groups, the Economic Policy Institute, a nonprofit think tank, and the Center on Budget and Policy Priorities, a research and policy institute. The New Jersey data were released by two Garden State groups, New Jersey Policy Perspective, a nonprofit public policy analysis group, and the advocacy group Association for Children of New Jersey. Among the other data in the report: • New Jersey is among the top 10 states in the disparity between lowest- and highest-income groups. • New Jersey ranks No. 9 nationally in the size on the income gap separating the top and bottom 20 percent of residents. • In 1980-82, New Jersey’s top 20 percent made 5.4 times more, on average, than the bottom 20 percent. By 2000-03, that ratio had jumped to 7.5. New Jersey Policy Perspective President Jon Shure said his group and the children’s association plan to distribute the New Jersey data to the state Legislature and Corzine administration, along with some recommendations for reducing the disparities. Those include automatically adjusting the minimum wage each year to cover inflation and increasing income tax credits and rental assistance for low-income residents.