Income Inequalities

Income inequality has been a major issue in American history. There are many different factors that contribute to inequality. These include education, wealth, discrimination, ability, and monopoly power.

This article comes from ABC news and was written in the last two weeks. The title of the article is “Why it Matters: Income Inequality” and the concern of the article is how in America the rich keep getting richer and others are left behind in the dust unable to support themselves financially. This concept relates to Chapter One of the text when it was said that “market forces of globalization facilitating exploitation of the most vulnerable members of society on an even larger scale than previously possible.” (*** pg.3) This is one of the key topics that have been debated during the course of this year’s presidential election. The candidates are constantly being asked what they would do about the large income gap that is happening in America and how this huge crisis could be solved. The middle class is seemingly non-existent because of the difficulty

Superior authorities that are discriminatory and unequal to others because of ones status have shaped our society to the way it is now. To this day we still encounter income inequalities in the United States. Social inequality gap between who can afford the healthcare. Superior people who are in charge don’t make it easy for low-income families to afford healthcare. Minority groups hold far fewer net financial assets than whites. We are categorized in groups, upper class, middle class and lower class. When health is a service, the poor are more likely to experience illness caused by poor diet, to live and work in unhealthy environments, and are less likely to challenge the system. In the United States, a disproportionate number of racial minorities

Executive Compensation. I’m in agreement with Thomas Piketty that the one cause of rising inequality in the United States “the rise of supersalaries” for top executives (Piketty & Goldhammer, 2014, p. 298). The average American estimates CEO to worker pay ratio at about 30-to-1, which is more than 4 times what they believe to be ideal. The career review site Glassdoor reported from 2014 data that the average pay ratio of CEO to median worker was 204-to-1 and that at the top of the list, four CEOs earn more than 1,000 times the salary of their median worker with the very top pay ratio of 1,951-to-1. In some cases a CEO makes in one-hour what it takes the average employee six-months to earn. In comparison, the Washington Post reported for the

The United States of America is vastly known for their rugged individualism. That is, the fascination with the belief that hard work and the free market will allow an individual to rise to the top. Since many of us were small children, we were told by our parents to pursue a college education, and once that is done, then our lives will fall into place.

This article discusses the wealth inequalities and social status differences between several slave communities throughout the Caribbean. The article examines various social structures and privileges afforded to slaves from the mid to late 1700’s. The slaves who worked on sugar plantations were often granted privileges and were considered to be of elite status. In comparison, slaves who were not located on sugar plantations were treated inhumanely, starved, regularly beaten and often worked to death.

Therefore, in order to make the American Dream achievable to everyone, income wages must increase for those in the lower class and government welfare should be provided to all Americans in order to increase the opportunity of social mobility. Though income inequality may seem as an inevitable issue that just happens to plague many Americans who choose to work in blue collar jobs, current economic inequality is more realistically the result of unfair economic policies that threaten to worsen if they are not immediately addressed. The poor conditions of the workers who work for long hours with little pay demonstrate that America is at a crucial point, and that without immediate action, the country will continue to plunge further downward into

There are three potential consequences of income and wealth inequality in the U.S discussed in the reading by Krueger. One consequence of the rise of inequality is that it makes it a struggle for those who are being born into low-income families to have the same equal opportunities as wealthier families to become successful in life. Children from high-income families have a higher advantage in ways that they are more likely to not only go to a good school and obtain their degrees but further extend that towards graduate schools with chances of promising careers. Growing up in an affluent family, the possibility of having a high-income as an adult is more attainable than an individual coming from a poor family who didn’t have the same privilege

The author touches on an important issue that affects the United States, which is income inequality between different sexes and occupations. The researcher asks an interesting research question that affects a high population in the United States. There have been several debates on income inequality, and it is essential to know the contribution of government and state policies to this problem. The increase in the disparity started in the mid-1970s. It is also important to know the reason for the inequalities between different states. This makes it easier to identify and change policies that contribute to income inequality. The research question is situated properly in the literature. The literature first explains the problem of income inequality,

Inequality is not favorable in society. There is inequality in many aspects of our society, such as race, and gender. The main inequality we look at is income inequality in the United States. The one percent of the population control a vast majority of the United States currency. The Gini coefficient has been increasing ever since the Industrial Revolution, a period where education, manufacturing, and economics has shown growth. However, income inequality has increased in the Industrial Revolution. There are many events, and causes that have led to the rise of income equality in the United States.

Income inequality has been a major concern around the world, and it mainly links to how economic metrics are distributed among individuals in a country. Economists generally categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed in their studies that inequality has drawbacks that lead to social problems. This is because income inequality and wealth concentration can hinder or delay long term growth. In 2011, International Monetary Fund economists showed that less income inequality increased the duration of countries’ economic growth spells more than free trade, low government corruption, foreign investment or low foreign debt (Berg and Ostry, 2011).

There are a number of reasons for studying the economic consequences of income inequality (see~\cite{dabla2015causes} and~\cite{bertola2014income}). Inequality of outcomes and opportunities in an intergenerational context is discussed by~\cite{black2015poor}, where they give evidence that wealth begets wealth. Inequality of opportunities can result in large social costs, as it can compromise individual's educational and occupational choices.~\cite{stiglitz2012price} also mentions the incentives people have to divert their efforts toward securing favored treatment and protection under such unequal society, resulting in corruption, nepotism and ultimately weakening the confidence in institutions. Besides, empirical evidence sugests there are

Do the dynamics of income inequality lead fatally to deep economic stagnation as it was firstly recognized by Karl Marx in the 19th century? Or was Kuznets right about do the balancing forces of growth, competition, and technological progress lead in later stages of the economic growth to decrease inequality and greater harmony among the classes, as Simon Kuznets thought in the 20th century (Kuznets, 1955)? These central questions have attracted the attention of a diverse group of scholars during the past sixty five years. Currently the most dangerous imbalance is in the distribution of wealth and income. Plutarch stated: “An imbalance between rich and poor is the oldest and most fatal ailment of all republics”. Income inequality has become

Allegretto, S. A., & Arthur, M. M. (2001). An empirical analysis of homosexual/heterosexual male earnings differentials: Unmarried and unequal? Industrial and Labor Relations Review, 54(3), 631-646.

Moreover, economic growth is often positively linked to more investments, higher employment-generating operations, and an increase in employment. Hence, allowing larger entrance to jobs and income to a major number of people, economic growth may cause a negative effect on income inequality especially if it was not joined by social progress. Because of the following reasons, the degree of the effect may differ between urban and rural areas. Firstly, a greater job competition may occur in urban areas due to higher population density, lead these areas to have a lower access to jobs compared to rural areas. Secondly, in urban areas international immigration is usually higher than in rural areas. It can be often seen that there are many immigrants