Wealth gap widest in affluent cities

Wealth gap widest in affluent cities

WASHINGTON

The gap between the wealthy and the poor is most extreme in several of the United States’ most prosperous and largest cities.

The economic divides in Atlanta, San Francisco, Washington, New York, Chicago and Los Angeles are significantly greater than the national average, according to a study released Thursday by the Brookings Institution, the Washington-based think tank. It suggests that many sources of both economic growth and income inequality have co-existed near each other for the past 35 years.

These cities may struggle in the future to provide adequate public schooling, basic municipal services because of a narrow tax base and “may fail to produce housing and neighborhoods accessible to middle-class workers and families,” the study said.

“There’s something of a relationship between economic success and inequality,” said Alan Berube, a senior fellow at Brookings. “These cities are home to some of the highest paying industries and jobs in the country.”

At the same time, Berube noted, many of these cities may inadvertently widen the gap between rich and poor because they have public housing and basic services that make them attractive to low-wage workers.

Applications for jobless aid decline

WASHINGTON

The number of people seeking U.S. unemployment benefits fell a slight 3,000 last week to a seasonally adjusted 336,000, a sign that layoffs remain low.

The Labor Department said Thursday that the four-week average of applications, a less-volatile measure, rose slightly to a seasonally adjusted 338,500.

The average is roughly in line with pre-recession levels and indicates that companies are cutting few jobs. Applications are a rough proxy for layoffs.

Stock market gains

NEW YORK

The pendulum swung again for stocks Thursday.

The stock market got a boost from a couple of encouraging signs that the economy could pick up after a winter slump. That wiped out a drop from the day before triggered by some unnerving news from the Federal Reserve.

Manufacturing in the U.S. expanded at the fastest pace in almost four years in February, according to a private survey by Markit. In a separate report, the Conference Board said that its index of leading indicators posted a moderate gain in January, suggesting that the economy will continue to expand in the first half of the year.

Oil price below $103

The price of oil slipped below $103 a barrel Thursday after a report indicated that manufacturing in China, the world’s second-biggest economy, shrank again in February.

U.S. crude for March delivery fell 39 cents to close at $102.92 a barrel in New York on the last day of trading for the contract. Crude for April delivery fell 9 cents to close at $102.75.

Oil prices fell after a monthly survey by HSBC found that China’s manufacturing, a driver of the global economy, contracted for a second-straight month.

Associated Press