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Miami Herald
4 days ago
- Business
- Miami Herald
Greater Miami catches up with NYC in one more way: high income inequality
As New Yorkers have flocked to Miami in recent years, the Magic City has started to look more and more like the Big Apple: Michelin restaurants abound, financial firms fill downtown and Brickell. But now, greater Miami is closing in on one of New York City's less-flattering superlatives: It's tied with NYC for having the worst income inequality of the country's 10 most-populous metro areas. Think of the local income distribution as a bottom-heavy hourglass. Some people make lots, while lots of people make little. South Florida has long been a place where the rich park their money, but wealth poured in during and after the pandemic, increasing the number of high earners who live here. That inflow of money, piled onto already high nationwide inflation, caused a surge in local prices, especially for housing. At the same time, many workers in the region's economy — which is built disproportionately on industries that feature low-wage jobs, like service, hospitality and construction — haven't seen their incomes keep pace. Income inequality has crept up so much over the last decade and a half, since the Census Bureau started tracking greater Miami's score, that half of Miamians now struggle to live here. If young, skilled workers can no longer afford to live here — or feel like they can't save, buy homes and generally get ahead — they'll leave. They already have been, said Howard Frank, a professor of public policy at Florida International University and an expert on South Florida's workforce. And losing that demographic, a pillar of the local workforce, could jeopardize Miami's efforts to reimagine itself as a world-class hub of industry — be it in financial services as 'Wall Street South,' in tech via crypto, or both. It's in the numbers The Census Bureau quantifies income inequality using something called the Gini index, a measurement of inequality where a 0 represents total equality — everyone earns the same amount — and 1 is complete inequality — one person earns everything. Greater Miami's Gini score is 0.51, higher than the nation's 0.48 average, meaning the region's income distribution skews toward the unequal. Within Miami-Dade County, Miami Beach had the highest score, 0.62, making it by far the most unequal, while the county's Everglades communities had the lowest, at 0.33. Miami, the region's largest city, scored a 0.54. The median household in greater Miami earns roughly $76,000 a year, according to the Census Bureau. To be considered 'middle class,' then, a household would have to earn somewhere between two-thirds and double that amount — $50,000 to $152,000. Pew Research estimates that 37% of adults in the Miami metro area earn less than that middle-class income floor. Compared to the U.S. more generally, where 28% of adult earners are in the lowest earning bracket, Miami has a relatively large low-income population. Meanwhile, across Florida, the highest-earning households account for a major portion of the state's earned income. Internal Revenue Service tax return data shows that the top 1% of Florida earners — the 105,000 tax filers that pulled at least $371,000 in 2022, the most recent year available — accounted for a third of the entire state's gross earnings. That's about how much the bottom 80% of Florida tax filers, who are roughly 8 million in number, collectively made. Except for Wyoming — home to fewer than 600,000 people — no American state saw its 1% earn a larger share of its population's income. Brain drain is a problem Miami's warm weather, relatively cheap real estate and favorable tax policies drew the wealthy in droves during and after the COVID-19 pandemic. They, in turn, drove up local prices, particularly for housing, faster than Miamians' wages rose. That's partially because many locals work in traditionally low-paying industries. 'Miami doesn't have a strong industrial base. It's a largely service-sector economy,' said Noah Williams, an economics professor at University of Miami's Herbert Business School. 'It's polarized between lower-wage jobs and some higher-income [jobs], particularly financial services.' And for some young workers, especially those with skills, looking to break into higher-paying industries, the cost can be unworkable. Or they find they get more bang for their buck elsewhere, said Mark Wilson, president of the Florida Chamber of Commerce. More than a half-million people left Florida between 2022 and 2023, Census Bureau data shows. The most powerful magnets for migrating Floridians? Georgia, Texas and North Carolina, in that order — all states with relatively lower costs of living than the Sunshine State. According to the Metropolitan Center, Miami-Dade County alone lost more than 130,000 residents to migration between 2020 and 2023, and its population of 20-year-olds has dropped by nearly 35,000 since 2019. The Florida Chamber of Commerce found that, in 2023, the average age of a Florida emigrant was 32. One of the major motivating factors: Florida's high cost of living. 'It's hard to morph into a higher-wage economy if you're losing a lot of your best and brightest,' said Frank, the FIU professor. It's a risky dynamic, notes Wilson of the Florida Chamber of Commerce. 'If we don't make living in Florida more affordable,' he said, 'the clear and present danger is that this workforce will leave Florida.' A race to solutions What can be done? Wilson sees three broad, interconnected solutions. First, connecting people with job training so they can up-skill into higher-paying careers. The second is providing targeted services, like access to affordable childcare, food and transportation — all needs that make taking a gamble on a new career possible. Lastly, said Wilson, costs need to be lowered. Home and auto insurance prices need to be brought down, childcare needs to be subsidized and affordable housing expanded. 'All of that stuff together is like a race,' Wilson remarked. But, he wondered, 'can we do it fast enough for it to matter?' This story was produced with financial support from supporters including The Green Family Foundation Trust and Ken O'Keefe, in partnership with Journalism Funding Partners. The Miami Herald maintains full editorial control of this work.
Epoch Times
06-05-2025
- Business
- Epoch Times
US Trade Deficit Hits Record in March on Pre-Tariff Imports Spike
The U.S. trade deficit widened to a record high in March as companies accelerated their imports ahead of U.S. tariffs taking effect. Bureau of Economic Analysis The monthly international trade deficit includes goods and services. Market watchers had anticipated a trade shortfall of $137 billion. Imports increased by 4.4 percent to a record high of $419 billion as businesses bolstered their purchases from abroad before the government made further tariff announcements. Companies purchased a greater amount of pharmaceutical preparations, finished metal shapes, passenger cars, and computer accessories. Related Stories 5/6/2025 5/5/2025 Exports rose at a tepid pace of 0.2 percent but hit a record $278.5 billion in March. U.S. companies shipped more industrial supplies and materials, passenger cars, and computer accessories. America's trade deficit with the European Union climbed to $48.3 billion from $30.9 billion, and its deficit with Ireland surged to $29.3 billion from $15.3 billion. The U.S. trade deficit with China narrowed to $24.8 billion from $26.6 billion. The gap also diminished with Switzerland, from $18.8 billion to $14.7 billion. America's trade deficit with Canada eased to $4.9 billion from $7.4 billion. The Census Bureau So far this year, the trade deficit has dragged down economic growth. In the first quarter, the U.S. economy contracted by 0.3 percent, fueled primarily by a 41 percent spike in imports. The Bureau of Economic Analysis subtracts imports from the gross domestic product (GDP) because the United States is purchasing more goods and services from foreign markets than domestically produced alternatives. The previous quarter's decrease may have been a one-off. The Federal Reserve Bank of Atlanta's GDPNow Model estimate suggests a 1.1 percent expansion in the second quarter, fueled by an expected improvement in the trade deficit. President Donald Trump and senior administration officials have repeatedly criticized the trade imbalance. 'Our trade deficit, driven by these nonreciprocal conditions, is a manifestation of the loss of the nation's ability to make, to grow, to build, and the president recognizes the urgency of the moment,' U.S. Trade Representative Jamieson Greer said in a Senate Finance Committee 'Our large and persistent trade deficit has been over 30 years in the making, and it will not be resolved overnight, but all of this is in the right direction.' Others have pushed back against the White House's trade deficit concerns. Then-U.S. Trade Representative nominee Jamieson Greer testifies before the Senate Committee on Finance on Capitol Hill in Washington on Feb. 6, 2025. Madalina Vasiliu/The Epoch Times Minneapolis Federal Reserve President Neel Kashkari says a trade deficit signals investor confidence in the United States. 'It's just economic math that if investors around the world say one country is the best place to invest, the math works out that that country will have a trade deficit,' Kashkari said in an April 13 A 2018 Congressional Research Service 'Attempting to alter the trade deficit without addressing the underlying macroeconomic issues will likely be counterproductive and create distortions in the economy,' the report stated. Volatility in Trade Dynamics Export bookings to the United States have remained resilient despite week-to-week volatility, according to However, U.S. exports to China have plummeted, collapsing by approximately 80 percent by the end of last month, 'pointing to deep disruptions tied to sourcing shifts, policy retaliation, or softening U.S. demand,' the firm said in a report. 'Tariff adjustments in March and April may have prompted cautious booking behavior or encouraged front-loading ahead of new policies. Meanwhile, shifting demand from key global markets is influencing volumes.' In a first-quarter earnings 'We expect container volume and average rates in the second quarter to be lower year over year,' Matson CEO Matt Cox said in a call with shareholders and analysts. 'At the moment, it's difficult to know if these lower volume levels are transitory or will persist for a longer time in 2025, and the duration of this lower demand period will likely depend on active negotiations taking place across the supply chain, and the timing of potential amendments to the tariffs.' Conditions could stabilize now that the 'tariff shock has passed,' says Jay Woods, chief global strategist at Freedom Capital Markets. 'We got the worst of the tariff news and are starting to 'negotiate' and scale things back,' Woods said in an email to The Epoch Times. In an 'I think we're very close to some deals,' Bessent said, adding that announcements could occur this week. Trump recently added to his tariff plans by proposing on Truth Social a 100 percent tariff on movies produced outside the United States, saying, 'We want movies made in America, again!' He later clarified to reporters on May 5 that he would meet with America's film industry to 'make sure they're happy' with his concept.
