ALBUQUERQUE, N.M. — A new report from the Center on Budget and Policy Priorities characterizes New Mexico as having one of the worst income inequality rates in the nation.
According to the report, the richest 5 percent of New Mexican households receive 19 percent of the state’s income, even when excluding capital gains. Those same households have average incomes five times as large as the middle 20 percent of households and 15 times as large as the bottom 20 percent of households.
The report ranks New Mexico as having the 12th highest income inequality rate in the nation.
The center is a nonpartisan think tank that analyzes policies from a progressive perspective.
“Income inequality is bad for the economy because it reduces opportunities for working people,” said Elizabeth McNichol, a senior fellow at the center and the author of the report. “If New Mexico wants to improve its economic situation, it will need to address the divide between the richest households and the rest of the state.”