Silicon Valley 'pain index' shows growing gap between wealthy - and everyone else
Growing wealth gap in Silicon Valley
A new report from San Jose State researchers is putting a spotlight on a big problem: the growing gap between Silicon Valley''s wealthiest households - and everyone else.
SAN JOSE, Calif. - A new report from San Jose State University researchers is putting a spotlight on a big problem: the growing gap between Silicon Valley's wealthiest households - and everyone else.
The report is called the "Silicon Valley Pain Index," because the goal is to measure poverty, inequality and the suffering this can cause.
SJSU researchers used more than 200 data points and statistics to put together the report.
62% of the net worth of Silicon Valley (estimated at 1.1 trillion) is concentrated in the wealthiest nine households of Santa Clara and San Mateo counties.
Those nine households made $136 billion more last year alone than they did the year before.
Compare that to at least 100,000 households in Santa Clara County with absolutely no assets at all.
The authors of the report say the wealth gap in the region has grown, and this extreme income disparity leads to all kinds of problems, especially when it comes to food, education and housing.
The report says the average person needs to make at least $125,000 a year to be able to afford San Jose's average $3,200-a-month rent.
And that a lack of affordable housing has created a domino effect - with families leaving the area, leading to lower enrollment in schools, and school closures.
It also means a shortage of workers for essential jobs.
The report's authors say San Jose would have to build about 8,000 new homes every year to reach its long-term housing goals.
The most the city has ever built in a year is about 1,700 homes.
There are some positive changes the report highlighted - including a decline in police use-of-force incidents in San Jose last year; fewer carbon emissions and pollution; and expanded homeless services in the community last year.
The authors of the study say they hope it leads to policy changes and changes in behavior among the wealthiest individuals.
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