This is an archived article that was published on sltrib.com in 2016, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Like much of southern Utah, Garfield County has a small population that lives near national parks and the flowing Colorado River.
And as in other southern Utah counties, it takes relatively little money for a Garfield County resident to join the top 1 percent of income earners: $170,400.
If a Garfield County earner who qualifies as a 1 percenter travels north to Salt Lake County, she would have to earn more than double her income to enter the 1 percent: $409,500. If she then takes a 30-minute drive east to Summit County, she would have to earn seven times her annual income, a whopping $1.2 million, to pass the 1 percent threshold.
Research released in June by the Economic Policy Institute outlines disparities of wealth in 26 Utah counties, revealing that the state has less income inequality than most of the U.S. — but the gaps are getting worse over time.
Few regions of the state are exceptionally wealthy, and Utah's poverty rate is a low 10.2 percent — only Wyoming and Minnesota are lower. The average U.S. poverty rate is about 15 percent, according to U.S. Census Bureau data.
The Economic Policy Institute's research is based on 2013 data for single adults and couples. Nationwide, 1 percenters held 20.1 percent of the wealth, compared with 15.7 percent in Utah, giving the state a ranking of 27 out of 50 states.
Newer data from University of California, Berkeley, show financial inequality became even wider in the United States last year, The Associated Press recently reported, with average income for the top 1 percent of households surging 7.7 percent to $1.36 million.
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Lower incomes, helping hands • In Utah, only Summit County's 1 percent threshold ($1.2 million) is dramatically above the national average of $389,400. On the low end, Emery and Garfield counties have the state's lowest 1 percent thresholds, but their populations are so small that they don't have a big impact on Utah's threshold of $333,800.
Economists say one reason for Utah's relatively equal incomes is the state's lack of Fortune 500 companies and national headquarters, which bring in well-paid executives. Only in recent years has Utah begun to acquire regional headquarters for companies such as Adobe and Goldman Sachs.
Analysts also cite Utah's low unemployment rate, young workforce and high levels of education. And, not surprisingly, the state's strong religious presence has an impact, too: Lots of faith-based charities donate food and money to help the poor make their way out of poverty.
"We do have a very well-functioning safety net in our state," said Natalie Gochnour, associate dean of the David Eccles School of Business at the University of Utah. "If you're down on your luck in Utah, there's a helping hand."
But the state is hardly immune to the national trend of rising income inequality. Poorer regions are getting poorer, and wealthier ones are getting wealthier.
"There's really high-priced housing downtown, which seems to be in high demand, yet none of the housing comes close to anything that those who come here for our services could afford," said Glenn Bailey, executive director of Crossroads Urban Center, which provides emergency care for the poor.
The center, which also advocates for affordable housing, is celebrating its 50th anniversary this year. "There are many issues we work on today," Bailey said, "that are the same ones people faced when we originally started."
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Utah's inequality rising • The Gini coefficient — a calculation of income distribution, with higher numbers indicating higher inequality — has risen nationally during the past eight years by 3.5 percent. In Salt Lake City, it has risen by 6.5 percent, and Utah has seen a 4.5 percent jump, according to Jim Wood, a senior fellow at the U.'s Kem C. Gardner Policy Institute.
Utah areas that rely heavily on one industry tend to be poorer, and faced a huge economic downturn during the Great Recession. Counties in southern Utah make most of their money from tourism and oil, and their employment rates have yet to return to pre-recession levels.
"The boom and bust in energy areas is not the same reliable economic base as other areas," Wood said. "And if you're off the freeway and you don't have a university, it's tough to attract people to your area."
On the other side of the equation, Summit County has faced economic difficulties caused by its growing wealthy populace. The region attracts people who buy second homes and enjoy winter recreation, which has led to exorbitant housing prices.
Summit County has greater income inequality than anywhere else in the state: Its 1 percenters hold 29 percent of the county's wealth, and the average person in the 1 percent earns just over $4 million a year.
"It's a paradox that most resort communities face," said Park City Mayor Jack Thomas. "It's not just the poverty component. It's hard for police officers, firefighters and young architects to live in the community. There was opportunity 30 years ago when I came here; you could fight your way in. I fear those opportunities just aren't there anymore."