Tuesday September 30 6:36 AM EDT America's Rich Get Richer, Poor Barely Gain By Deborah Zabarenko WASHINGTON (Reuter) - America's richest got much richer last year but the middle class and the poor gained only a little more wealth, the U.S. Census Bureau reported Monday. "The rich are getting a lot richer, the poor are getting a little richer," said Dan Weinberg, who heads the bureau's Housing and Household Economic Statistics Division. Weinberg said the number of poor people in the United States -- families of four who live on $16,036 or less -- was about the same as in 1995: 36.5 million, or 13.7 percent of the total U.S. population. Weinberg said in a telephone interview that it was too soon to tell if the poverty figures showed a hiatus in an upward trend or if they represented a change in direction. The median household income in the United States rose by 1.2 percent to $35,492 while the richest Americans' household income rose by 2.8 percent, adjusted for inflation. The poorest households took in only $57 more in 1996 than in 1995, representing no essential change, Weinberg said. Over the long term, median household income had increased about 15 percent since 1967, and poor households gained about 14 percent over the same period. But the nation's richest households gained 46 percent in income since 1967. The census figures were announced the day after Forbes Magazine released its annual list of the richest Americans, which was once again topped by Microsoft Corp co-founder Bill Gates, whose net worth was estimated at $39.8 billion. The bureau also found that 10.6 million American children, or 14.8 percent, were without health insurance in 1996. The children were among 41.7 million people in the United States who lacked health insurance. President Clinton hailed the reported increase in middle-class income, saying at a White House news conference that this was in line with his strategy "to preserve the American dream, restore the hopes of the forgotten middle class, and reclaim the future for our children." The president noted the increase in uninsured children, but said many of those would be eligible for coverage "under the balanced budget's historic $24 billion child health initiative, which takes effect this week." While acknowledging the positive aspects of the census numbers, economist Jared Bernstein of the liberal Economic Policy Institute said the figures pointed up a slow recovery from the last recession, especially for men. Earnings for men who worked full-time, year-round, fell nearly 1 percent between 1995 and 1996, bringing their earnings to 7.1 percent less than they made in 1989, the pre-recessionary peak, Bernstein said. The typical U.S. family's income has still not reached 1989 levels. "The president's right to point out that we're climbing out of a hole, but he's neglecting to point out that we're not out yet," Bernstein said in a telephone interview. He said the story was more positive for women, who have regained earnings levels they had in 1989 -- but median earnings for women who worked full-time all year were lower to start with and even in 1996 equaled only 74 percent of the median earnings for full-time, year-round male workers. That ratio is the all-time high for women. "Clearly those who are trumpeting the accomplishments of the economy in 1997 are disconnected from typical workers whose experience has been one of greater insecurity, wage erosion -- particularly for men -- and stagnant living standards," said Bernstein, whose institute is funded in part by labor unions. Marvin Kosters of the conservative American Enterprise Institute agreed with Clinton's rosy take on the census report, but said that in light of other optimistic economic news, including a rising stock market and tight labor market, the question was: "Why isn't the news better than it is?" =====================