In Every State, Gains in Income Trail Growth in Economy

Source: Tim Henderson, Stateline, September 14, 2015

Economic growth outpaced any gains in median household income in every state from 2000 to 2013, a new Stateline analysis shows. The divergence between middle-class income growth and general economic growth has been a topic of debate among economists for years. But the new analysis—which uses state gross domestic product per person as a measure of economic growth and income data through 2013, the most recent available—reveals significant differences between states that often reflect their differing economies. …. So where did the growth in wealth go? Why are middle-class incomes stagnant, and why is the middle class shrinking, if there is more economic output as measured per person? And what explains those differences between the states? …..