Decades of increasing inequality in the U.S.
Do you ever wonder why the U.S. is more unequal than most other wealthy countries? Why families are struggling to get by and homelessness is at record levels, while wealth and income inequality have risen drastically?
The state of the current economy was created this way on purpose. It’s the result of political choices that have historically favored the wealthy and powerful over working families. From weakening the social safety net and tilting the tax code toward the wealthiest to making it harder to find safe, well-paying jobs, these policy reforms have deepened divides, driven concentrated wealth and power at the top, and caused hardship for too many.
These are deliberate choices. And now the Trump administration and the Republican majority in Congress are making things worse.
U.S. wealth inequality over time
New Oxfam analysis reveals that the gains at the very top have been astronomical, while the working and middle classes have fallen further behind.
Between 1989 and 2022, wealth and income inequality in the U.S. have exploded to obscene levels.
- A U.S. household in the top 0.1% gained at least $39.5 million, while a household in the bottom 20% gained less than $8,500.
- U.S. households in the top 1% gained at least 101 times more wealth than the median household, and at least 987 times more wealth than households in the bottom 20%.
In the past year alone, the 10 richest U.S. billionaires gained over a half a trillion dollars.
Gender inequality in the U.S.
Inequality impacts men and women and gender-diverse individuals in different ways. In many ways, our society was built by and for the benefit of men—specifically white men. Women have been historically undervalued and underpaid and are more vulnerable to the impacts of inequality.
- Between 1989 and 2022, the average male-headed household gained four times the wealth of the average female-headed household.
- In 2022, the average wealth of male-headed households was 3.7 times that of female-headed households.
- In 2023, the gender pay gap widened for the first time in 20 years. It widened again in 2024. The median annual income of full-time women workers is $57,520, which is $13,570 less than the median annual income of men.
Racial inequality in the U.S.
U.S. inequality is also shaped by historic and continued racial and ethic discrimination. Our economy was built on a foundation of slavery, and that legacy continues to influence racial inequality to this day. People of color experience poverty at higher rates than white households.
The impacts of inequality are disproportionately felt by women of color, who face both racial and gender discrimination. Women of color started behind and fared worse than other demographic groups in recent decades.
- Black and Hispanic households combined own just 5.8% of all U.S. wealth, though they make up one-third of the U.S. population.
- Between 1989 and 2022, the wealth of the average white household increased 7.2 times more than the average Black household, and 6.7 times more than average Hispanic household.
- As of 2022, the average wealth of a white male-headed households was 16 times higher than that of households headed by Black or Latina women.
How does the U.S. compare to other countries?
The U.S. is more unequal than many other industrialized countries. Among 10 peer countries, the U.S. has the highest rate of relative poverty, the second highest rate of child poverty and infant mortality, and the second lowest life expectancy. The reasons for this include ack of public investment in healthcare and child care and low minimum wages.
