Jessica Andors is the Executive Director of Lawrence CommunityWorks (LCW), a New Way Forward partner

Massachusetts has a robust economy. While it ranks high in wealth, it fails to realize its potential as an inclusive economy. Disparities are significant compared to the nation overall – and even compared to other New England states.    

Economic inequality is a threat to economic growth, social and political stability. When more people increase their financial wellbeing, it impacts everyone. It empowers individuals to further their education, puts goals like home ownership within reach and improves mental and physical health.  In short, it advances thriving, equitable communities.  

The income inequality ratio is getting bigger and not better. Economists point to technological change, globalization, the decline of unions and the eroding value of the minimum wage as contributing factors to this trend.  

In 2024, Massachusetts has one of the highest Income inequality ratios in the United States with a ratio of 5.5 in 2024, meaning household income at the highest 80th percentile of income in Massachusetts is 5.5 times greater than the lowest 20th percentile of household income in the State. Suffolk County has a much higher ratio of 7.7. Nationally, this ratio is 4.9. 

 
Communities with greater income inequality can experience a loss of social connectedness, as well as decreases in trust, social support, and a sense of community for all residents. Income inequality within communities can have broad health impacts, including increased risk of mortality, poor health, and increased cardiovascular disease risks. 

Our data shows fostering upward mobility can promote progress and break cycles of intergenerational poverty.  United Way is working to close the income inequality gap by bringing the income level of those in the 20^th percentile of wealth in Massachusetts closer to that of the 80^th percentile.   

How can we make progress on that? United Way is investing in 42 community-based organizations that help people increase income, build credit and savings and reduce debt.  Organizations like Lawrence CommunityWorks, MIDAS, Boston Builds Credit, Compass Working Capital, Empath, Urban Edge and our own Economic Inclusion and Wealth Building and United Way Pathways for Young Adults Programs are working to expand access to the tools necessary to close the inequality gap. 

We’re also advocating for policy changes, raising awareness and building public and political will for proven solutions such as guaranteed income, baby bonds and matched savings. 
 
United Way staff experts have been tapped to speak on several panels and discussions about the importance of systemic change and looking at this work from the population level through policies and practices of the distribution of resources. Some of these speaking opportunities have included the MASSCAP 60^th Anniversary Celebration, the Empath Disrupting Poverty Conference, and the Midas Collaborative Annual Financial Health & Wellness Summit.  

An emerging priority is the Secure 2.0 Act, a modernization of the retirement planning system. We’re working on getting a voice at the table to ensure that the implementation of this act is equitable and reaches the most disenfranchised. 
 
We have also embarked on a partnership with Root Cause to advance our efforts in tracking metrics. With Root Cause and our partner agencies, we have begun the process of defining how we are going to measure success in this work and what systems change and economic justice mean to our communities.  

Stay informed: Watch this space for more insights around the population-level measures that will show how our region is making progress in increasing the financial wellbeing of households and advancing thriving, equitable communities and sign up for our newsletter.   

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