Income inequality in Ohio

Household inequality refers to the extent to which income is distributed unequally among people living in households collectively in a population.[2][3] In 2009, the average household income for the poorest 20% of Ohioans was $20,500, while the middle 20% of Ohioans had an average household income of $58,100. The richest 5% of Ohioans had an average household income of $221,800.[4]

The average real income for the top 1% of Ohioans grew by 111.2% between 1979 and 2007.[5] When adjusted for inflation, the top 1% in Ohio saw their income grow by 70% between 1979 and 2011, while the rest had a decline in average income of 7.7%.[5] Over the last decade, incomes for the bottom 2% in Ohio dropped by 6.9%.[4] Ohio's overall income grew in Ohio from 2009 to 2012, with an overall 7.1% increase in income growth. The top 1% had a 37.0% in income growth, while the bottom 99% grew their income by only 2.3%. The top 1% accounted for 71.9% of the overall shared income during this period.[6] The burden of income tax falls disproportionately on lower-income tax brackets. In 2018, the bottom 20% of earners contributed 12.3% of their income towards various taxes, while the top 1% only paid 6.5%.[7]

Critics of income inequality often refer to a casual chain linking unequal growth to a weakened economy. Unequal growth concentrates wealth in the hands of a small portion of consumers who can only purchase a limited amount. As a result, the vast majority of people are left with little disposable income for goods and services, leading to reduced consumer activity and capital generation in the economy.[8]

Proponents of income inequality often reject the idea of increased government intervention in the markets, which they view as inevitable if income inequality is to be fixed. Among the most notable arguments for income inequality are those concerning the natural effects of capitalism and free markets. These arguments point out that unequal rewards are natural in a system structured for inequality. Furthermore, they argue that the money earned in a free market system should be kept by the earner.[9]