w w w. b o s t o n i n d i c a t o r s. o r g Income Inequality, Boston: Aggregate income, bottom quintile at 2%; top 5 % at 25%, 2008 This snapshot of the distribution of aggregate income in Boston in 2008 paints a similar picture We like to think of ourselves as a place of opportunity for all, with a strong middle class. In breaking out total income by quintiles, or each 20% of households, that’s what just the blue bars suggest. But we have moved well beyond that, with extremes---the green bars--at both ends. What this shows is that in 2008, the bottom 20% of households had about 2% of aggregate income while the top 5% had 25%. We are becoming a nation and community of extremes, where it is possible to inhabit entirely different economic universes. w w w. b o s t o n i n d i c a t o r s. o r g

Income Inequality, US: After WW II, income inequality among American families declined, rising sharply in the 80’s into 2007 But perhaps the most corrosive recent trend of all, and the one with the greatest potential for lasting national and local harm, is widening income inequality. That is the major theme of this year’s Indicators report. As you can see, for about two decades after World War II, income inequality among American families declined sharply as returning soldiers took advantage of the GI Bill - went to college on a subsidized tuition and bought a home with a low-interest mortgage. That trend began to move in the other direction in the 1970s, increased steeply through the 1980s and continued until the recession of 2007.

w w w. b o s t o n i n d i c a t o r s. o r g Comparative Income Inequality: The US is now an outlier among other wealthy industrialized (OECD) nations, 2007 By 2007, the US, in red at the far left, was almost off the chart on the Gini Index, a standard measure of the gap between rich and poor, among wealthy industrialized nations On the far right, among the dark blues, we find the second and third largest economies – Japan and Germany– and in the center, in green, France and Canada. In other words, we are now an outlier among our peers. w w w. b o s t o n i n d i c a t o r s. o r g

The Geography of Income Inequality: US Gini Ratio by State, 2007 NY Gini ratio: .50 NY Gini ratio: .50 MA Gini ratio: .47 MA Gini ratio: .47 And this is income inequality by state, with New York’s stark extremes clearly highlighted – along with, again, the deep south and MA. MA

w w w. b o s t o n i n d i c a t o r s. o r g The Geography of Income Inequality: New England Counties, Gini Ratio, 2007-2009 Lincoln County Gini ratio: .48 In New England overall, high levels of by county income are rare. As you can see, only Suffolk and Fairfield Counties, a wealthy New York suburb in Connecticut—and to a lesser extent Lincoln County in Maine, with Boothbay Harbor — show high rates of inequality Pulling back, we can see where we stand nationally Suffolk County Gini ratio: .51 Fairfield County Gini ratio: .54 w w w. b o s t o n i n d i c a t o r s. o r g 5

The Geography of Income Inequality: Just 47 of 3200 US counties had a Gini ratio above .51 in 2007-2009 And we find that nationwide, Suffolk is one of just 47 out of a total 3200 US counties with a comparable inequality ratio. Outside of Suffolk and counties in and around New York City and San Francisco County on the West, almost all of the others are located in the South. We are used to comparing ourselves to other Leading Technology states – not counties in Mississippi and Alabama. To be fair, Boston alone ranks 8th among the nation’s 50 largest cities after Miami, Atlanta, New Orleans, New York, Dallas, DC and LA – but what that means is that all of those cities harbor a deep economic divide. 6

Correlation of Inequality and Quality of Life: Obesity Rate by State,1997 Fasten your seat belts. This is a map of the nation showing obesity rates by state in 1997 with a nice bell curve there on the bottom left showing several states under 15% and ALL states under 23%. NOW, fast forward to 2007.

Correlation of Inequality and Quality of Life: Obesity Rate by State, 2007 In just 11 years, the entire nation developed a new normal as the bell curve moved to the right. Only one state, Colorado, now has an obesity rate under 20% Massachusetts, at about % 23, is deemed to be among the best, but it’s an Alice in Wonderland statistic. Today’s best is equivalent to the worst in 1997. Does it matter?

The Geography of Income Inequality: Just 47 of 3200 US counties had a Gini ratio above .51 in 2007-2009 And we find that nationwide, Suffolk is one of just 47 out of a total 3200 US counties with a comparable inequality ratio. Outside of Suffolk and counties in and around New York City and San Francisco County on the West, almost all of the others are located in the South. We are used to comparing ourselves to other Leading Technology states – not counties in Mississippi and Alabama. To be fair, Boston alone ranks 8th among the nation’s 50 largest cities after Miami, Atlanta, New Orleans, New York, Dallas, DC and LA – but what that means is that all of those cities harbor a deep economic divide. 9

Percentage African American by US County This shows the concentration of Africa Americans in the US by county county-level map at population demographics. We could zoom in on the map, or select clusters of counties for further analysis. 10 10

Percent Children in Poverty by Census Tract, Boston 2000

Percent African-American Population – by Census Tract, Boston, 2000 And it is characterized by a high concentration of people of color, as you can see This is a map showing the percentage of Africa Americans in Boston by Census Tract. This Map Shows that a Gini Ratio of .51 and above is quite high even among Developing Countries for which there is reliable data.

Percent Latino Population – by Census Tract, Boston, 2000 Similarly, this shows the concentration of Latinos in Boston by Census Tract.

Foreclosures by Boston Census Tract, 2008 Countries with Gini Ratio above .51 And this map shows recent mortgage foreclosures And underscores the economic and emotional havoc wrought by bad policies, lax regulation and predatory lending on the people and places in Boston least well positioned to bear it. Not surprisingly, the geography of inequality plays out in many other ways… This Map Shows that a Gini Ratio of .51 and above is quite high even among Developing Countries for which there is reliable data.

Correlation of Income Inequality With Quality of Life: Children in Poverty by Census Tract (2000) and Foreclosed Properties, Boston, 2008

Using Weave, we can see how fast the world is changing Using Weave, we can see how fast the world is changing. This is the world’s urban population in 1975 in thousands by nation – quite evenly distributed 17

And this is the same measure, projected for 2050, which shows China and India surpassing all developed nations today in the percent of their people living in cities 18

And this, environmental boundaries across states in the form of watersheds ©2007 University of Massachusetts 19

This shows the system’s capacity to change boundaries – in this case to Congressional districts in New England ©2007 University of Massachusetts 20