Jun 20, 2016|
Noah Berger (Mass Budget And Policy Center) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Our topic is income how much income you have to earn in order to be in the top 1%. This state in which you reside we're joined by. Noah Berger from the he's the president of the Massachusetts budget and policy center I know are you. Good so I read this story I think it was last week some time about. It was about income inequality but really what fascinated me was to seat the disparity. Did the income levels in order to be in the top 1% across the country. At lenders wonder if you could take us through a few of the states. Yet the there are significant disparity that there's some state it very high compression etiquette for what you have to. Make about 660000. Dollars a year to be in the top 1%. On Vermont in contrast to you about it a thousand dollars. Per year to be in the top 1%. Com Massachusetts is near the top of that list and around I've been in 39000 dollars to be in the top 1%. Edit when I think it's important about that. That is it's the people over that rational of the top 1%. There's been virtually. All of gained an economic growth of the past. Forty years and I respect yours if you look at the years coming out of the recession for years after 2009. Investors it's for example into the top 1% and up by about 32%. Everybody else it's been basically flat when it expert now that gap has been growing. And specifically brilliant way to at least to most people not just little of people but like middle income people even to Clinton beat Wheldon on the top 1%. Not seem as if it can grow even wetter climate to cover things are getting better which is the time he should have no income for the people across the spectrum. No that's peculiar because we've seen minimum wage rise quite a bit over the last. Fifteen years or ten years anyway haven't. Perhaps if you go back in 1968 and then wage now actions of the below what applies pack it in those states that we had. The last couple years and and catch up on and and weight which can make progress of our people but it against had been. A lot of other changes in the economy that it leading to make it tougher for most people know. In fact if you look at Massachusetts for example. If we had the pattern of growth. Tom cross into inspector which incidentally is what we had in the decade App Store unfortunately those decades. When the economy grew we became more productive. Wages went up ordinary working people from going to people middling of people hiring and people. At just about the rate of productivity. If stature and continued we continued trend where. Everybody wake up when it became more productive. Immediately connect to it today. Would be about 20000 dollar higher it is that wage that population makes more that makes masochism that over 60000 toward the end now. Couldn't stand the 2000. And think that's been important if we think about. What's happening there on the war is is question of what we did make sure when the economy goes. There's benefits reach everybody in. People work we should be able to get rated and they're more productive. It. No why do you think this is accelerated in the last seven years. I'm I think that there are a lot of reasons if you look back at that period after World War II it was a sort of consensus in the country that it school. Economic policies to make sure that. When the economy grows for what we do. Economy which is important and that's that grow at least there ranking wages and incomes for everybody in that. Played out a lot of policies on trade policy it is labor laws it possible for people to form unions to fiscal monetary policy that aimed at full point in. Now you'll see for example it to a that it begins to look like. Rapid wage growth is at it don't work rate of inflation that they are known as inflation therefore we're gonna raise interest rates to try to reduced wage and that's just one example of that type of policy of not looking at this question. But it can be and it basically just. Distracted by a lot of other issues. What's what are the common denominator. Among the states with a very high levels of income like Massachusetts and Connecticut. I think when you distinguish between those states can. You know states like New Hampshire Vermont. I mean in inordinately and northern states which have lower levels of inequality. Or more rural states you know serve big cities in the big centers. Commerce like we do here in Massachusetts and Connecticut. I think there are a lot of strength. To which we take in some ways it's similar we do best to have. You really well educated workforce which is important it's important part of why we have a strong and it economy or state that over the long term has had invested in education. And that's meter you know different apparently to. Building relatively high wage economy. That the challenges that even for project state workers he's days wages are increasing and there are. Two big expedition one is making sure that our people are as productive as possible which you get that through. Education. Two things like make sure our infrastructure is it sounds you know roads don't have to teapot hold our subway system works and it. Businesses can be productive provident also I think about what can happen at the national that. Structured in a way. Economic. The wage goes in and for most people. Nor can you give me the top 1% income for New Hampshire Maine and Rhode Island we have that data. Yeah I do the top 1% in comfort island is to me it in 36000. For New Hampshire gives it to 59000. And I mean it's 282. 282 so main is the lowest one then out of the sex talk. Yes and any candidate many red motoring someplace and many other places. Very good. Are you know what thank you very much for your timing your information we appreciate it. Noah Berger president of the mass budget and policy and are giving those top 1% income so if you wanna make a lot of money in you wanna be in the top 1%. In the state in which your side if you're in Connecticut. It's the highest income statement in the in New England chuck it 660. That that's up 660000. Vermont is 300000. Massachusetts 539000. New Hampshire 359000. Rhode Island. 336000. In mean 200 in 82000. To be in the top 1%. That's pretty pretty broad range I think depending on the state you're looking at in general what we see. Is states that tend to be a little bit more urban based tend to have a little bit more of a split there just because a lot of jobs in those urban areas at the low when can be very low paying but he can also have some of those top and jobs and things like finance. Major businesses and so forth. Imagine if you broke out New York right think about New York State they'll set it up for the city in the state of B and believe what you just said we're gonna count. Westchester County. And New York City. And maybe some of the verbs of Long Island off. Right under with the income would be there to it to be in the top 1% but be that couple million bucks. I would say probably somewhere in the ballpark of one to one point three thing about the cost of living. In New York City right through to live in Manhattan the costs of living is not ordinary.