The past quarter century of "socialism for the rich" -- easy money booms and busts, privatize the profits, socialize the losses -- has been very good for some. Indeed, the centralization of wealth within the financial sector can lay to being one of the dominate social phenomena of our time. Tyler Durden at Zero Hedge maps it out:
Portfolio has prepared a useful interactive map highlighting America's increasing split between thehaves and the have nots based on city of residence. Case in point: the wealthiest city in the US according to Portfolio, Newport Beach, has more than a quarter of its residentshouseholds making over $200,000. On the other end of the spectrum is Reading, PA, whose 80,000 households have an average per capita income of $14,120 (of half the national average), and none makes over $200,000. And a stab at New Yorkers - with a median household income of just $31,245, and "just" 6.9% of households making $200,000, Mike Bloomberg's city ranks a distant 60th in the list of wealthiest cities.
Some other characteristics of uberwealthy Newport Beach, which is home to $1+ trillion bond manager PIMCO, situated conveniently about 13.5 seconds away from the Newport Beach Country Club:
- Newport Beach’s per capita income (PCI) of $86,586 easily leads the 420 U.S. communities with populations above 75,000, and it triples the national PCI of $27,589. (Per capita income is the average amount of money earned by each resident of a community in a given year.)
- More than a quarter of Newport Beach’s households (28.6 percent, to be exact) have annual incomes of more than $200,000. Just two other cities in the study group are above 17 percent—Newton, Massachusetts, and Pleasanton, California—though neither does any better than 24 percent.
- The median value for homes in Newport Beach exceeds $1 million. Another California city, Santa Barbara, is the only other place analyzed by Portfolio.com/bizjournals that can make that claim. (A median is a midpoint, with half of all homes being worth more and half worth less.)One thing is certain: if you live in any of the 5 poorest cities, which in addition to Reading include Camden, New Jersey; Flint, Michigan; Brownsville, Texas; and Gary, Indiana (and Detroit, which is sixth from the bottom), the last thing you care about it the prevailing home price around Fashion Island, or level of the S&P - you are likely much more concerned about the amount of ammunition in your garage.
More maps and charts can be found here.