Pandemic Years Witnessed Surge in U.S. Income Inequality, Fed Survey Reveals

A Federal Reserve survey revealed that while American families experienced overall gains in income and wealth from 2019 to 2022, income inequality grew during the pandemic years. The highest-earning and white families saw the largest income gains, while Hispanic and Black families experienced small declines in median income. Median net worth increased for all ethnic and income groups, except for the lowest-earning 20% of households who experienced a 2% decline. The survey also highlighted disparities in net worth among racial and ethnic groups, with Black households having the lowest median net worth. Education levels played a significant role, with households where the reference person had at least some college or a college degree seeing income increases, while those with only a high school diploma or less experienced no change or income drops. The survey aligns with other data showing a concentration of wealth and income since the 1980s, with the housing and stock markets contributing to the gains.