Study: Gap between US rich and poor growing ever wider

Dec 25, 2010, 14:50 GMT

Washington - The gap between rich and poor in the United States is growing ever wider, according to a think-tank study released on Friday.

The gap is at its largest since the survey began in 1962, the Economic Policy Institute (EPI) said in its report.

The richest 1 per cent of American households have 225 times as much money as the average household, it said.

The last survey, conducted in 2007, had revealed that the richest 1 per cent had 181 times as much money as the average household, whereas in the 1960s the figure was 125.

The recent global recession has had some impact on the wealthy. In 2009, the richest 1 per cent had an average of 14 million dollars - 27 per cent less than in 2007.

But the average household was hit harder, with average assets of around 62,200 dollars - a decrease of 41 per cent.

In calculating household assets, the think-tank includes house ownership. The average American has suffered far more from the effects of falling property prices than the elite, the EPI said.