Morton Marcus
Last week in this space poverty had center stage. Hoosiers not in poverty were miffed by the neglect to focus on their status. Now we’ll take a broader look at the distribution of income across households in our 92 counties.
Fortunately, the Census Bureau leaves it to us to decide what is high, middle, and low income for a household. We’ll take the easy path and consider a statistical route to that determination.
According to data adjusted to 2022 prices for the American Community Survey, the average Hoosier county had 48% of its households with incomes between $35,000 and $100,000, with 28% below $35,000 and 25% at or above $100,000.
To some, $35,000 will be too low for middle income. For others, $100,000 will be to high. But that is the best delineation of the data without imposing a behavioral or cultural standard on the information provided.
The three counties with the highest percentages of households having less than $35,000 in annual income were our friends from last week: Blackford (40.5%), Crawford (40.0%) and Scott (38.6%). Not surprisingly, these same counties had the lowest percentages of households with $100,000+ income. The figures were Crawford (12.7%), Blackford (16.0%), and Scott (16.7%).
Starting from the other end of the household income distribution, we find only Hamilton County (52%) with more than half of its households enjoying incomes of $100,000 or more. Next in line are Boone (46.4%) and Hendricks (42.7%).
An alternative way of looking at income distribution are the familiar average and median figures. Four Indiana counties have an average income in excess of $100,000: Hamilton ($140,553), Boone ($132,865), Warrick ($110,141), and Hendricks $109,086).
Only two counties have averages below the $60,000 household income level some proclaim as the minimum necessary for a middle class lifestyle. They are Crawford ($59,977) and Scott ($58,880).
But let’s not ignore the fact the averages tell a different story from the median value. Averages can be distorted by extraordinary high or law values. In Crawford County, for example, one in eight households (12.7%) have income at $100,000 or more.
More telling are the median household figures. Fifty of Indiana’s 92 counties have median incomes below $50,000. In those counties, half the households endure with incomes below that level.
These data are worth more attention from our elected officials and economic development agencies in every county. Income is the enabling factor for relief from the anxiety and physical hardships borne by those who are without prospects for sustaining a healthy life. Is increasing the opportunities in already congested communities the answer to statewide prosperity?
Hoosier politicians are obsessed with tangential issues. Safety is not the number one issue in our major urban areas. Abortion and gender rights are important, but they do not deserve the primacy of place they have in public debate.
Mr. Marcus is an economist. Reach him at [email protected]. Follow him and John Guy on Who Gets What? wherever podcasts are available or at mortonjohn.libsyn.com.
