SlideShare ist ein Scribd-Unternehmen logo
1 von 11
Downloaden Sie, um offline zu lesen
Running head: INCOME INEQUALITY 1
INCOME INEQUALITY 6
ADDRESSING INCOME INEQUALITY
(Author’s Name)
(Institutional Affiliation)
Addressing Income Inequality
For decades now, the wealth gap among United States citizens
has increasingly become high. This has contributed to various
social and economic problems such as inadequate employment,
poverty, crime, and health issues (Dabla-Norris et al., 2015).
Because of the wide array of challenges attributed to Income
Inequality there is need for the society to come up with some
solutions to address this issue. Even though there are many
ways through which the society can narrow down this wealth
gap, the policies chosen need to follow a multifaceted approach
in order to come up with a permanent solution. Below are some
of the policy alternatives that can be used to address the
issue.Providing affordable, and quality education to the citizens
According to Breen & Chung (2015), education is one of the
major factors that accounts for income inequality among the
people. The people who are well educated are more likely to
earn better incomes than the people who are not educated. This
is due to the fact that educated people have some skills which
they can use to acquire full time employment with good
salaries. Because of this reason education is arguably one of the
best tools that can be used to eradicate income inequality in
United States.
Lack of education among some citizen in the United States is
closely attributed to poverty. Statistics show that more than 1
out of every 5 children are living in poverty (Childfund, 2013).
This means that a similar number of children don’t get good
education because their parents can afford. Even if they access
education it will likely be the basic primary and secondary
education and they will never have the opportunity to get post-
secondary education. Since most of the good jobs currently
demand at least one to have post-secondary education it is
important that we invest in providing access to affordable and
quality education and encourage young people to go school.
To provide affordable, and quality education the government
should:
· Build enough schools in all parts of the country that can
accommodate everyone who needs education.
· Ensure that the schools have enough resources needed to
provide quality education. This include qualified teachers and
learning materials
· Subsidize the cost of education to ensure that the citizens can
afford
· Provide scholarships to low-income students to help them
access higher education in-order to acquire the skills needed to
secure jobs in the competitive market.
Issues facing education in United States
One of the greatest issue currently facing education in the us is
the criticism of public schools. This has consequently led to
decrease of funding of the schools. As these are the schools
which most of the low-class people can afford, most of the
students end up not getting quality education because the
schools are not well funded and lack resources needed to
provide good education. Other people assume that public
schools have incompetent teachers. Due to this reason graduates
from these schools face a hard time getting employment since
most employers assume they are a product of poor training
programs (Breen & Chung, 2015). Maintaining these
perceptions will continue hurting the education and young
generation who have potential to learn hence maintaining the
income inequality.
Taxing the rich
The tax system is a very essential tool in wealth redistribution.
A country which has a big percentage of its wealth belonging to
the hands of only a few people is likely to face challenges in
growing its economy. Over the years income taxes have been
seen as another tool of curbing income inequality. Even though
increasing taxes for higher income earners can affect the
economic growth of a country it can significantly lead to
declines in the income inequality. However, the increase in the
top-bracket tax rate need to be accompanied with some sensible
tax polies so that it does aggravate problems in the tax system
(Kumhof et al., 2015).
How to ensure that the rich are fairly taxed
Even though most of the times rich people most of the times
find legal and illegals ways to avoid paying taxes, a progressive
tax system is likely to reduce the wealth gap between the rich
and the poor. To ensure that families don’t remain wealthy for
generations, a country should impose high estate taxes so that
rich people don’t pass their wealth to their children. Another
way to ensure that the inheritances are fairly taxed is make sure
that rich people don’t own their assets until they die. Increasing
the minimum wage
Raising the federal minimum wage can significantly help reduce
the income inequality. On the other end it could help the value
of the minimum wage which has only risen from $5.15 to $7
since 2007 (Brainerd,2018).
But how can how can it reduce income inequality?
Currently, the gap between low-wage and the middle-wage
workers wages is quite big. In this case if the minimum wage is
raised it will make some progress in reducing the gap. If the
current minimum wage is raised it can increase the pay of more
than 1.6 million and many more who currently earn less than the
minimum wage. Most of the low-income families end up
attending low income schools because they cannot afford to pay
the private ones. This puts students from such families at first
risk because the low-income schools don’t have enough funding
to provide the facilities needed to give quality education.
Evidently, the minimum wage is an important matter that need
to be addressed not only to appease income inequality but also
to improve the people standards of living (Sabia & Burkhauser,
2010).
The people who oppose increase of the minimum wage argue
that increasing it will place a burden to employers especially
the ones with small companies which will in return lead to
slower growth rates of their business due to low returns. They
add to say that if the companies make small returns they are
likely to retrench their employees leading to unemployment. On
the other hand, the ones who advocate for its increase say that
the current minimum wage doesn’t match the rate of inflation.
Opinions from both sides have some economical implications
but the later carries the day since studies have shown that
increase in minimum wage have little impact on
unemployment(Schmitt,2013).
References
Brainerd, J. (2018, February 1). STATE MINIMUM WAGES |
2018 MINIMUM WAGE BY STATE. Retrieved February 14,
2018, from http://www.ncsl.org/research/labor-and-
employment/state-minimum-wage-chart.aspx
Breen, R., & Chung, I. (2015). Income Inequality and
Education. Sociological Science, 2.
Childfund (2013, April 11). Statistics on Poverty and Education
in the United States. Retrieved February 14, 2018, from
https://www.childfund.org/Content/NewsDetail/2147489206/
Dabla-Norris, M. E., Kochhar, M. K., Suphaphiphat, M. N.,
Ricka, M. F., & Tsounta, E. (2015). Causes and consequences of
income inequality: A global perspective. International Monetary
Fund.
Kumhof, M., Rancière, R., & Winant, P. (2015). Inequality,
leverage, and crises. American Economic Review, 105(3), 1217-
45.
Meer, J., & West, J. (2015). Effects of the minimum wage on
employment dynamics. Journal of Human Resources.
Sabia, J. J., & Burkhauser, R. V. (2010). Minimum wages and
poverty: will a $9.50 Federal minimum wage really help the
working poor?. Southern Economic Journal, 76(3), 592-623.
Schmitt, J. (2013). Why does the minimum wage have no
discernible effect on employment?. Center for Economic and
Policy Research, 22, 1-28.
Running head: INCOME INEQUALITY
1
INCOME INEQUALITY 7
Income Inequality
(Author’s Name)
(Institutional Affiliation)
Income Inequality is a Problem
Why Income Inequality is a Problem
Income inequality is the magnitude of uneven distribution
in a population. United States has experienced widening income
inequality in the recent times if you consider that the number of
Americans living in poverty increased by 15 % between 2000
and 2006 (Saez & Zucman, 2016). Furthermore, in 2012, the
income of the 1% in the United States was 22.83% reflecting
the widest income inequality gap since the economic depression
of the 1920s (Chetty et al., 2014).
Figure 1 illustrates the increasing percentage earnings for the
top 10% and the declining percentage earnings for the middle
class and the poor. In 1970, the 50% at the bottom earned 19%
of the total income, but in 2014, they made only 10 % of the
total income reflecting a sharp decline of 9%.In contrast, the
top 10% earned 47% of the total income earned in 2014
compared to 31% in 1970 depicting an increase of 16%.This
situation seems to have accelerated as illustrated in Figure 2
since the share of US income that went to the top 10% had risen
from 47% to 52% depicting the ugly picture of deteriorating
income inequality in the United States. Therefore, the claim that
income inequality is a problem in the United States is well
substantiated and the sooner this problem is addressed, the
better for the middle class and the low-income families.
Possible reasons for the widening income disparity include
technological advancements which have replaced relatively
unskilled workers while rewarding highly skilled employees
(Chetty et al., 2014). Also, globalization has enabled many
corporations in the country to outsource labor from places like
China where the cost of labor is lower than in the United States
(Saez & Zucman, 2016). Also, the declining political power of
the working class means that they do not have a say in the
policy-making hence their interests are not taken into account in
the law-making process. Finally, the declining value of the
minimum wage means that the low-income earners cannot
maintain the same standard of living they had in 2009 when the
minimum wage was last reviewed (Tsui, Enderle & Jiang,
2017).
Figure 1: Comparison of Percentage of Share of Total Income
Earned by Different Classes Between 1970 and 2014
Retrieved from:
https://www2.deloitte.com/content/dam/insights/us/articles/3313
_IBTN_income-inequality-
infographic/figures/3313_infographic.png
The figure illustrates the ever-increasing disparity between
the rich, the middle class and the poor. Whereas the poor earned
19% of the total income in 1970, this percentage had declined to
10% in 2014.In sharp contrast, the percentage share of the top
1% had increased by 16 % from 31% in 1970 to 47 % in 2014.
Figure 2: Share of Income that Went to the top 10% in the
United States Between 1915 and 2015
Retrieved from: https://www.gannett-cdn.com/-mm-
/077f418268d5b72919dda63323402bc5f90498c9/c=14-0-567-
415&r=x408&c=540x405/local/-
/media/2017/12/04/USATODAY/usatsports/income-
inequality_large.PNG
The figure above illustrates that from the 1970’s the
income disparity in the United States has become more
pronounced reaching a peak in 2015 when the top 10% earned
52% of the total income in the United States.Possible
Opposition to the Problem Definition
While most people are likely to agree that income
inequality is a problem worth solving, conservatives might not
share this ideology and they may hold that income inequality is
not a problem, and as such, it is not worth solving. The main
argument that conservatives are likely to the front is that
inequality is a natural part of free markets (Goda, Onaran, &
Stockhammer, 2017). The United States is a meritocratic society
meaning that people earn money according to the amount of
hard work they put. For this reason, opponents to the notion that
income inequality is a problem might argue that a free market is
based on the idea that innovation and hard work should be
rewarded and therefore, trying to fix income inequality will
discourage innovation and entrepreneurial spirit (Helpman et
al., 2017). Also, using the free market argument, opponents to
the income inequality problem might hold that if people believe
that their investments and income would not lead to a
significant change in their incomes, their motivation to innovate
and invest will decrease (Chetty et al., 2014). This argument is
likely to win hearts since the entire US economy is built on
innovation and hard work and therefore suggesting that fixing
income inequality might remove this admirable aspect of the US
economy will make many citizens and policymakers to have a
second thought. Why Taxpayer Money and Money should be
Dedicated to Solve Income Inequality
Dedicating time and money to address income inequality is
essential for several reasons. To start with, reducing income
inequality will boost shared prosperity so that the rich, the
middle class and the poor have equal access to quality amenities
such as health and education opportunities. Shared prosperity
will mean that people from all social classes can reap the
benefits of globalization and technological advancement (Rudra
& Tobin, 2017). As it stands, the poor and the middle class have
seen the ugly face of globalization as companies source for
cheap labor in emerging economies. Secondly, a reduction in
income inequality is a vital ingredient to a healthy democracy.
Notably, extreme inequality can trigger political turmoil where
the majority poor rise against the minority rich thus tearing a
country apart (Goda et al., 2017). The idea of populism
champions the regular people and challenges them to take
control over the governing of their country instead of leaving it
in the power of few elites. Populism is likely to make a country
ungovernable since the everyday people feel that they have been
disenfranchised for eons and hence the need to take control of
their economic, political and social destinies. Furthermore,
reducing income disparity will promote faster economic growth
since it leads to a reduction in government welfare spending
hence more money can be used in developmental projects such
as improving the state of roads and investing in education
(Mueller, Ouimet & Simintzi, 2017). Besides, since wealthy
people spend less of their income than poor people, putting
more money in the hands of the poor and middle class will
accelerate economic growth. Thus, it is worth committing time
and resources to address income inequality since this will
contribute to shared prosperity, healthier democracy and spur
economic growth.
References
Chetty, R., Hendren, N., Kline, P., Saez, E., & Turner, N.
(2014). Is the United States still a land of opportunity? Recent
trends in intergenerational mobility. The American Economic
Review, 104(5), 141-147.
Goda, T., Onaran, Ö., & Stockhammer, E. (2017). Income
inequality and wealth concentration in the recent crisis.
Development and Change, 48(1), 3-27.
Helpman, E., Itskhoki, O., Muendler, M. A., & Redding, S. J.
(2017). Trade and inequality: From theory to estimation. The
Review of Economic Studies, 84(1), 357-405.
Mueller, H. M., Ouimet, P. P., & Simintzi, E. (2017). Wage
inequality and firm growth. American Economic Review,
107(5), 379-83.
Rudra, N., & Tobin, J. (2017). When Does Globalization Help
the Poor?. Annual Review of Political Science, 20, 287-307.
Saez, E., & Zucman, G. (2016). Wealth inequality in the United
States since 1913: Evidence from capitalized income tax data.
The Quarterly Journal of Economics, 131(2), 519-578.
Tsui, A., Enderle, G., & Jiang, K. (2017). Income Inequality In
The United States: Reflections On The Role of Corporations.
Academy of Management Review, amr-2016.
Running head INCOME INEQUALITY1INCOME INEQUALITY6A.docx

Weitere ähnliche Inhalte

Ähnlich wie Running head INCOME INEQUALITY1INCOME INEQUALITY6A.docx

Running head HIGHER EDUCATION2HIGHER EDUCATION2.docx
Running head HIGHER EDUCATION2HIGHER EDUCATION2.docxRunning head HIGHER EDUCATION2HIGHER EDUCATION2.docx
Running head HIGHER EDUCATION2HIGHER EDUCATION2.docxwlynn1
 
Research Of Consumption Patterns And Wealth Accumulation
Research Of Consumption Patterns And Wealth AccumulationResearch Of Consumption Patterns And Wealth Accumulation
Research Of Consumption Patterns And Wealth AccumulationYolanda Jenkins
 
The future of community based services and education
The future of community based services and educationThe future of community based services and education
The future of community based services and educationAisha Ellington
 
C2 Education Policy Summary
C2 Education Policy SummaryC2 Education Policy Summary
C2 Education Policy SummaryDebra Davis
 
The Influence Of Ideologies In The Formulation Of Social...
The Influence Of Ideologies In The Formulation Of Social...The Influence Of Ideologies In The Formulation Of Social...
The Influence Of Ideologies In The Formulation Of Social...Michelle Bojorquez
 
Essay About Homeless Children In America
Essay About Homeless Children In AmericaEssay About Homeless Children In America
Essay About Homeless Children In AmericaAlyssa Dennis
 
Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment
Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment
Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment Dr Lendy Spires
 
Nicaragua Unemployment Rate
Nicaragua Unemployment RateNicaragua Unemployment Rate
Nicaragua Unemployment RateSara Rouse
 
Reducing Dropout Rates
Reducing Dropout RatesReducing Dropout Rates
Reducing Dropout RatesJill Ailts
 
National Dropout Rate Between Primary And Secondary Schools
National Dropout Rate Between Primary And Secondary SchoolsNational Dropout Rate Between Primary And Secondary Schools
National Dropout Rate Between Primary And Secondary SchoolsMarilyn Marie
 
Comments (add 5) In some ways, the result of all the tax money an.docx
Comments (add 5) In some ways, the result of all the tax money an.docxComments (add 5) In some ways, the result of all the tax money an.docx
Comments (add 5) In some ways, the result of all the tax money an.docxclarebernice
 
Running head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docx
Running head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docxRunning head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docx
Running head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docxcowinhelen
 
Main Issues That Affect The Quality Of Access Education
Main Issues That Affect The Quality Of Access EducationMain Issues That Affect The Quality Of Access Education
Main Issues That Affect The Quality Of Access EducationJessica Cotter
 
Response one pol-06Note three or four reference on your res.docx
Response one pol-06Note three or four reference on your res.docxResponse one pol-06Note three or four reference on your res.docx
Response one pol-06Note three or four reference on your res.docxsusanschei
 

Ähnlich wie Running head INCOME INEQUALITY1INCOME INEQUALITY6A.docx (20)

Running head HIGHER EDUCATION2HIGHER EDUCATION2.docx
Running head HIGHER EDUCATION2HIGHER EDUCATION2.docxRunning head HIGHER EDUCATION2HIGHER EDUCATION2.docx
Running head HIGHER EDUCATION2HIGHER EDUCATION2.docx
 
Essay On Unemployment
Essay On UnemploymentEssay On Unemployment
Essay On Unemployment
 
Persuasive Essay On Funding For Education
Persuasive Essay On Funding For EducationPersuasive Essay On Funding For Education
Persuasive Essay On Funding For Education
 
Research Of Consumption Patterns And Wealth Accumulation
Research Of Consumption Patterns And Wealth AccumulationResearch Of Consumption Patterns And Wealth Accumulation
Research Of Consumption Patterns And Wealth Accumulation
 
Essay About Inequality In Life
Essay About Inequality In LifeEssay About Inequality In Life
Essay About Inequality In Life
 
The future of community based services and education
The future of community based services and educationThe future of community based services and education
The future of community based services and education
 
Causes And Effects Of Unemployment In Fiji
Causes And Effects Of Unemployment In FijiCauses And Effects Of Unemployment In Fiji
Causes And Effects Of Unemployment In Fiji
 
C2 Education Policy Summary
C2 Education Policy SummaryC2 Education Policy Summary
C2 Education Policy Summary
 
Unemployment And Its Effects On Society
Unemployment And Its Effects On SocietyUnemployment And Its Effects On Society
Unemployment And Its Effects On Society
 
The Influence Of Ideologies In The Formulation Of Social...
The Influence Of Ideologies In The Formulation Of Social...The Influence Of Ideologies In The Formulation Of Social...
The Influence Of Ideologies In The Formulation Of Social...
 
Essay About Homeless Children In America
Essay About Homeless Children In AmericaEssay About Homeless Children In America
Essay About Homeless Children In America
 
Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment
Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment
Gender Equality and Pro-Poor Growth - Women’s Economic Empowerment
 
Nicaragua Unemployment Rate
Nicaragua Unemployment RateNicaragua Unemployment Rate
Nicaragua Unemployment Rate
 
Reducing Dropout Rates
Reducing Dropout RatesReducing Dropout Rates
Reducing Dropout Rates
 
National Dropout Rate Between Primary And Secondary Schools
National Dropout Rate Between Primary And Secondary SchoolsNational Dropout Rate Between Primary And Secondary Schools
National Dropout Rate Between Primary And Secondary Schools
 
Comments (add 5) In some ways, the result of all the tax money an.docx
Comments (add 5) In some ways, the result of all the tax money an.docxComments (add 5) In some ways, the result of all the tax money an.docx
Comments (add 5) In some ways, the result of all the tax money an.docx
 
Running head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docx
Running head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docxRunning head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docx
Running head INCREASING THE MINIMUM WAGE1INCREASING THE MINI.docx
 
Persuasive Essay On Unemployment
Persuasive Essay On UnemploymentPersuasive Essay On Unemployment
Persuasive Essay On Unemployment
 
Main Issues That Affect The Quality Of Access Education
Main Issues That Affect The Quality Of Access EducationMain Issues That Affect The Quality Of Access Education
Main Issues That Affect The Quality Of Access Education
 
Response one pol-06Note three or four reference on your res.docx
Response one pol-06Note three or four reference on your res.docxResponse one pol-06Note three or four reference on your res.docx
Response one pol-06Note three or four reference on your res.docx
 

Mehr von cowinhelen

Case Study 1 Applying Theory to PracticeSocial scientists hav.docx
Case Study 1 Applying Theory to PracticeSocial scientists hav.docxCase Study 1 Applying Theory to PracticeSocial scientists hav.docx
Case Study 1 Applying Theory to PracticeSocial scientists hav.docxcowinhelen
 
Case Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docx
Case Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docxCase Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docx
Case Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docxcowinhelen
 
Case Study 1 httpswww.scu.eduethicsfocus-areasbusiness-eth.docx
Case Study 1  httpswww.scu.eduethicsfocus-areasbusiness-eth.docxCase Study 1  httpswww.scu.eduethicsfocus-areasbusiness-eth.docx
Case Study 1 httpswww.scu.eduethicsfocus-areasbusiness-eth.docxcowinhelen
 
Case Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docx
Case Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docxCase Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docx
Case Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docxcowinhelen
 
Case Study 1 & 2 Lyme DiseaseThe answers must be in your own.docx
Case Study 1 & 2 Lyme DiseaseThe answers must be in your own.docxCase Study 1 & 2 Lyme DiseaseThe answers must be in your own.docx
Case Study 1 & 2 Lyme DiseaseThe answers must be in your own.docxcowinhelen
 
Case Study -AlmaraiAbout the Company Almarai is an integrat.docx
Case Study -AlmaraiAbout the Company  Almarai is an integrat.docxCase Study -AlmaraiAbout the Company  Almarai is an integrat.docx
Case Study -AlmaraiAbout the Company Almarai is an integrat.docxcowinhelen
 
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docx
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docxCase Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docx
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docxcowinhelen
 
Case Study - Nathan ConyersDirectionsRead the following case .docx
Case Study - Nathan ConyersDirectionsRead the following case .docxCase Study - Nathan ConyersDirectionsRead the following case .docx
Case Study - Nathan ConyersDirectionsRead the following case .docxcowinhelen
 
Case Study - Missed OpportunitiesRead the case study Mi.docx
Case Study - Missed OpportunitiesRead the case study Mi.docxCase Study - Missed OpportunitiesRead the case study Mi.docx
Case Study - Missed OpportunitiesRead the case study Mi.docxcowinhelen
 
Case study (1)Control activities mitigate risks that threate.docx
Case study (1)Control activities mitigate risks that threate.docxCase study (1)Control activities mitigate risks that threate.docx
Case study (1)Control activities mitigate risks that threate.docxcowinhelen
 
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docx
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docxCase Study - Cyberterrorism—A New RealityWhen hackers claiming .docx
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docxcowinhelen
 
Case Study - APA paper with min 4 page content Review the Blai.docx
Case Study - APA paper with min 4 page content Review the Blai.docxCase Study - APA paper with min 4 page content Review the Blai.docx
Case Study - APA paper with min 4 page content Review the Blai.docxcowinhelen
 
Case Study - Global Mobile Corporation Damn it, .docx
Case Study - Global Mobile Corporation      Damn it, .docxCase Study - Global Mobile Corporation      Damn it, .docx
Case Study - Global Mobile Corporation Damn it, .docxcowinhelen
 
Case Study (2).  Prepare a written answer to this situation and supp.docx
Case Study (2).  Prepare a written answer to this situation and supp.docxCase Study (2).  Prepare a written answer to this situation and supp.docx
Case Study (2).  Prepare a written answer to this situation and supp.docxcowinhelen
 
CASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docx
CASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docxCASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docx
CASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docxcowinhelen
 
Case Study #3Apple Suppliers & Labor PracticesWith its h.docx
Case Study #3Apple Suppliers & Labor PracticesWith its h.docxCase Study #3Apple Suppliers & Labor PracticesWith its h.docx
Case Study #3Apple Suppliers & Labor PracticesWith its h.docxcowinhelen
 
CASE STUDY (Individual) Scotland  In terms of its physical l.docx
CASE STUDY (Individual) Scotland  In terms of its physical l.docxCASE STUDY (Individual) Scotland  In terms of its physical l.docx
CASE STUDY (Individual) Scotland  In terms of its physical l.docxcowinhelen
 
Case Study #4 – Federal Agency Audience and Readability Analysis F.docx
Case Study #4 – Federal Agency Audience and Readability Analysis F.docxCase Study #4 – Federal Agency Audience and Readability Analysis F.docx
Case Study #4 – Federal Agency Audience and Readability Analysis F.docxcowinhelen
 
Case Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docx
Case Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docxCase Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docx
Case Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docxcowinhelen
 
Case Study #3 Intellectual Property Theft AnalysisScenarioFor you.docx
Case Study #3 Intellectual Property Theft AnalysisScenarioFor you.docxCase Study #3 Intellectual Property Theft AnalysisScenarioFor you.docx
Case Study #3 Intellectual Property Theft AnalysisScenarioFor you.docxcowinhelen
 

Mehr von cowinhelen (20)

Case Study 1 Applying Theory to PracticeSocial scientists hav.docx
Case Study 1 Applying Theory to PracticeSocial scientists hav.docxCase Study 1 Applying Theory to PracticeSocial scientists hav.docx
Case Study 1 Applying Theory to PracticeSocial scientists hav.docx
 
Case Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docx
Case Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docxCase Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docx
Case Study 1 Are Our Customer Liaisons Helping or Hurting Due We.docx
 
Case Study 1 httpswww.scu.eduethicsfocus-areasbusiness-eth.docx
Case Study 1  httpswww.scu.eduethicsfocus-areasbusiness-eth.docxCase Study 1  httpswww.scu.eduethicsfocus-areasbusiness-eth.docx
Case Study 1 httpswww.scu.eduethicsfocus-areasbusiness-eth.docx
 
Case Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docx
Case Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docxCase Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docx
Case Study 1 & 2 Lyme Disease and Peripheral Vascular Disease .docx
 
Case Study 1 & 2 Lyme DiseaseThe answers must be in your own.docx
Case Study 1 & 2 Lyme DiseaseThe answers must be in your own.docxCase Study 1 & 2 Lyme DiseaseThe answers must be in your own.docx
Case Study 1 & 2 Lyme DiseaseThe answers must be in your own.docx
 
Case Study -AlmaraiAbout the Company Almarai is an integrat.docx
Case Study -AlmaraiAbout the Company  Almarai is an integrat.docxCase Study -AlmaraiAbout the Company  Almarai is an integrat.docx
Case Study -AlmaraiAbout the Company Almarai is an integrat.docx
 
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docx
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docxCase Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docx
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docx
 
Case Study - Nathan ConyersDirectionsRead the following case .docx
Case Study - Nathan ConyersDirectionsRead the following case .docxCase Study - Nathan ConyersDirectionsRead the following case .docx
Case Study - Nathan ConyersDirectionsRead the following case .docx
 
Case Study - Missed OpportunitiesRead the case study Mi.docx
Case Study - Missed OpportunitiesRead the case study Mi.docxCase Study - Missed OpportunitiesRead the case study Mi.docx
Case Study - Missed OpportunitiesRead the case study Mi.docx
 
Case study (1)Control activities mitigate risks that threate.docx
Case study (1)Control activities mitigate risks that threate.docxCase study (1)Control activities mitigate risks that threate.docx
Case study (1)Control activities mitigate risks that threate.docx
 
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docx
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docxCase Study - Cyberterrorism—A New RealityWhen hackers claiming .docx
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docx
 
Case Study - APA paper with min 4 page content Review the Blai.docx
Case Study - APA paper with min 4 page content Review the Blai.docxCase Study - APA paper with min 4 page content Review the Blai.docx
Case Study - APA paper with min 4 page content Review the Blai.docx
 
Case Study - Global Mobile Corporation Damn it, .docx
Case Study - Global Mobile Corporation      Damn it, .docxCase Study - Global Mobile Corporation      Damn it, .docx
Case Study - Global Mobile Corporation Damn it, .docx
 
Case Study (2).  Prepare a written answer to this situation and supp.docx
Case Study (2).  Prepare a written answer to this situation and supp.docxCase Study (2).  Prepare a written answer to this situation and supp.docx
Case Study (2).  Prepare a written answer to this situation and supp.docx
 
CASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docx
CASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docxCASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docx
CASE STUDY - BULLYING THE AMANDA TODD STORYCase Study - Bully.docx
 
Case Study #3Apple Suppliers & Labor PracticesWith its h.docx
Case Study #3Apple Suppliers & Labor PracticesWith its h.docxCase Study #3Apple Suppliers & Labor PracticesWith its h.docx
Case Study #3Apple Suppliers & Labor PracticesWith its h.docx
 
CASE STUDY (Individual) Scotland  In terms of its physical l.docx
CASE STUDY (Individual) Scotland  In terms of its physical l.docxCASE STUDY (Individual) Scotland  In terms of its physical l.docx
CASE STUDY (Individual) Scotland  In terms of its physical l.docx
 
Case Study #4 – Federal Agency Audience and Readability Analysis F.docx
Case Study #4 – Federal Agency Audience and Readability Analysis F.docxCase Study #4 – Federal Agency Audience and Readability Analysis F.docx
Case Study #4 – Federal Agency Audience and Readability Analysis F.docx
 
Case Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docx
Case Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docxCase Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docx
Case Study #4 - Adult Nutrition (25 pts.)1. Interview 3 adul.docx
 
Case Study #3 Intellectual Property Theft AnalysisScenarioFor you.docx
Case Study #3 Intellectual Property Theft AnalysisScenarioFor you.docxCase Study #3 Intellectual Property Theft AnalysisScenarioFor you.docx
Case Study #3 Intellectual Property Theft AnalysisScenarioFor you.docx
 

Kürzlich hochgeladen

How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxPurva Nikam
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeCeline George
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxraviapr7
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxDr. Asif Anas
 
10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdfJayanti Pande
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 
How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17Celine George
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSyedNadeemGillANi
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICESayali Powar
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapitolTechU
 
A gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceA gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceApostolos Syropoulos
 
Vani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational TrustVani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational TrustSavipriya Raghavendra
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 

Kürzlich hochgeladen (20)

March 2024 Directors Meeting, Division of Student Affairs and Academic Support
March 2024 Directors Meeting, Division of Student Affairs and Academic SupportMarch 2024 Directors Meeting, Division of Student Affairs and Academic Support
March 2024 Directors Meeting, Division of Student Affairs and Academic Support
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptx
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using Code
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptx
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptx
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 
How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICE
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptx
 
A gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceA gentle introduction to Artificial Intelligence
A gentle introduction to Artificial Intelligence
 
Vani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational TrustVani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 

Running head INCOME INEQUALITY1INCOME INEQUALITY6A.docx

  • 1. Running head: INCOME INEQUALITY 1 INCOME INEQUALITY 6 ADDRESSING INCOME INEQUALITY (Author’s Name) (Institutional Affiliation) Addressing Income Inequality For decades now, the wealth gap among United States citizens has increasingly become high. This has contributed to various social and economic problems such as inadequate employment, poverty, crime, and health issues (Dabla-Norris et al., 2015). Because of the wide array of challenges attributed to Income Inequality there is need for the society to come up with some solutions to address this issue. Even though there are many ways through which the society can narrow down this wealth gap, the policies chosen need to follow a multifaceted approach in order to come up with a permanent solution. Below are some of the policy alternatives that can be used to address the issue.Providing affordable, and quality education to the citizens
  • 2. According to Breen & Chung (2015), education is one of the major factors that accounts for income inequality among the people. The people who are well educated are more likely to earn better incomes than the people who are not educated. This is due to the fact that educated people have some skills which they can use to acquire full time employment with good salaries. Because of this reason education is arguably one of the best tools that can be used to eradicate income inequality in United States. Lack of education among some citizen in the United States is closely attributed to poverty. Statistics show that more than 1 out of every 5 children are living in poverty (Childfund, 2013). This means that a similar number of children don’t get good education because their parents can afford. Even if they access education it will likely be the basic primary and secondary education and they will never have the opportunity to get post- secondary education. Since most of the good jobs currently demand at least one to have post-secondary education it is important that we invest in providing access to affordable and quality education and encourage young people to go school. To provide affordable, and quality education the government should: · Build enough schools in all parts of the country that can accommodate everyone who needs education. · Ensure that the schools have enough resources needed to provide quality education. This include qualified teachers and learning materials · Subsidize the cost of education to ensure that the citizens can afford · Provide scholarships to low-income students to help them access higher education in-order to acquire the skills needed to secure jobs in the competitive market. Issues facing education in United States One of the greatest issue currently facing education in the us is the criticism of public schools. This has consequently led to
  • 3. decrease of funding of the schools. As these are the schools which most of the low-class people can afford, most of the students end up not getting quality education because the schools are not well funded and lack resources needed to provide good education. Other people assume that public schools have incompetent teachers. Due to this reason graduates from these schools face a hard time getting employment since most employers assume they are a product of poor training programs (Breen & Chung, 2015). Maintaining these perceptions will continue hurting the education and young generation who have potential to learn hence maintaining the income inequality. Taxing the rich The tax system is a very essential tool in wealth redistribution. A country which has a big percentage of its wealth belonging to the hands of only a few people is likely to face challenges in growing its economy. Over the years income taxes have been seen as another tool of curbing income inequality. Even though increasing taxes for higher income earners can affect the economic growth of a country it can significantly lead to declines in the income inequality. However, the increase in the top-bracket tax rate need to be accompanied with some sensible tax polies so that it does aggravate problems in the tax system (Kumhof et al., 2015). How to ensure that the rich are fairly taxed Even though most of the times rich people most of the times find legal and illegals ways to avoid paying taxes, a progressive tax system is likely to reduce the wealth gap between the rich and the poor. To ensure that families don’t remain wealthy for generations, a country should impose high estate taxes so that rich people don’t pass their wealth to their children. Another way to ensure that the inheritances are fairly taxed is make sure that rich people don’t own their assets until they die. Increasing the minimum wage
  • 4. Raising the federal minimum wage can significantly help reduce the income inequality. On the other end it could help the value of the minimum wage which has only risen from $5.15 to $7 since 2007 (Brainerd,2018). But how can how can it reduce income inequality? Currently, the gap between low-wage and the middle-wage workers wages is quite big. In this case if the minimum wage is raised it will make some progress in reducing the gap. If the current minimum wage is raised it can increase the pay of more than 1.6 million and many more who currently earn less than the minimum wage. Most of the low-income families end up attending low income schools because they cannot afford to pay the private ones. This puts students from such families at first risk because the low-income schools don’t have enough funding to provide the facilities needed to give quality education. Evidently, the minimum wage is an important matter that need to be addressed not only to appease income inequality but also to improve the people standards of living (Sabia & Burkhauser, 2010). The people who oppose increase of the minimum wage argue that increasing it will place a burden to employers especially the ones with small companies which will in return lead to slower growth rates of their business due to low returns. They add to say that if the companies make small returns they are likely to retrench their employees leading to unemployment. On the other hand, the ones who advocate for its increase say that the current minimum wage doesn’t match the rate of inflation. Opinions from both sides have some economical implications but the later carries the day since studies have shown that increase in minimum wage have little impact on unemployment(Schmitt,2013). References Brainerd, J. (2018, February 1). STATE MINIMUM WAGES |
  • 5. 2018 MINIMUM WAGE BY STATE. Retrieved February 14, 2018, from http://www.ncsl.org/research/labor-and- employment/state-minimum-wage-chart.aspx Breen, R., & Chung, I. (2015). Income Inequality and Education. Sociological Science, 2. Childfund (2013, April 11). Statistics on Poverty and Education in the United States. Retrieved February 14, 2018, from https://www.childfund.org/Content/NewsDetail/2147489206/ Dabla-Norris, M. E., Kochhar, M. K., Suphaphiphat, M. N., Ricka, M. F., & Tsounta, E. (2015). Causes and consequences of income inequality: A global perspective. International Monetary Fund. Kumhof, M., Rancière, R., & Winant, P. (2015). Inequality, leverage, and crises. American Economic Review, 105(3), 1217- 45. Meer, J., & West, J. (2015). Effects of the minimum wage on employment dynamics. Journal of Human Resources. Sabia, J. J., & Burkhauser, R. V. (2010). Minimum wages and poverty: will a $9.50 Federal minimum wage really help the working poor?. Southern Economic Journal, 76(3), 592-623. Schmitt, J. (2013). Why does the minimum wage have no discernible effect on employment?. Center for Economic and Policy Research, 22, 1-28. Running head: INCOME INEQUALITY 1 INCOME INEQUALITY 7
  • 6. Income Inequality (Author’s Name) (Institutional Affiliation) Income Inequality is a Problem Why Income Inequality is a Problem Income inequality is the magnitude of uneven distribution in a population. United States has experienced widening income inequality in the recent times if you consider that the number of Americans living in poverty increased by 15 % between 2000 and 2006 (Saez & Zucman, 2016). Furthermore, in 2012, the income of the 1% in the United States was 22.83% reflecting the widest income inequality gap since the economic depression of the 1920s (Chetty et al., 2014). Figure 1 illustrates the increasing percentage earnings for the top 10% and the declining percentage earnings for the middle class and the poor. In 1970, the 50% at the bottom earned 19% of the total income, but in 2014, they made only 10 % of the total income reflecting a sharp decline of 9%.In contrast, the top 10% earned 47% of the total income earned in 2014 compared to 31% in 1970 depicting an increase of 16%.This situation seems to have accelerated as illustrated in Figure 2 since the share of US income that went to the top 10% had risen from 47% to 52% depicting the ugly picture of deteriorating income inequality in the United States. Therefore, the claim that income inequality is a problem in the United States is well substantiated and the sooner this problem is addressed, the better for the middle class and the low-income families. Possible reasons for the widening income disparity include technological advancements which have replaced relatively unskilled workers while rewarding highly skilled employees (Chetty et al., 2014). Also, globalization has enabled many corporations in the country to outsource labor from places like China where the cost of labor is lower than in the United States (Saez & Zucman, 2016). Also, the declining political power of
  • 7. the working class means that they do not have a say in the policy-making hence their interests are not taken into account in the law-making process. Finally, the declining value of the minimum wage means that the low-income earners cannot maintain the same standard of living they had in 2009 when the minimum wage was last reviewed (Tsui, Enderle & Jiang, 2017). Figure 1: Comparison of Percentage of Share of Total Income Earned by Different Classes Between 1970 and 2014 Retrieved from: https://www2.deloitte.com/content/dam/insights/us/articles/3313 _IBTN_income-inequality- infographic/figures/3313_infographic.png The figure illustrates the ever-increasing disparity between the rich, the middle class and the poor. Whereas the poor earned 19% of the total income in 1970, this percentage had declined to 10% in 2014.In sharp contrast, the percentage share of the top 1% had increased by 16 % from 31% in 1970 to 47 % in 2014. Figure 2: Share of Income that Went to the top 10% in the United States Between 1915 and 2015
  • 8. Retrieved from: https://www.gannett-cdn.com/-mm- /077f418268d5b72919dda63323402bc5f90498c9/c=14-0-567- 415&r=x408&c=540x405/local/- /media/2017/12/04/USATODAY/usatsports/income- inequality_large.PNG The figure above illustrates that from the 1970’s the income disparity in the United States has become more pronounced reaching a peak in 2015 when the top 10% earned 52% of the total income in the United States.Possible Opposition to the Problem Definition While most people are likely to agree that income inequality is a problem worth solving, conservatives might not share this ideology and they may hold that income inequality is not a problem, and as such, it is not worth solving. The main argument that conservatives are likely to the front is that inequality is a natural part of free markets (Goda, Onaran, & Stockhammer, 2017). The United States is a meritocratic society meaning that people earn money according to the amount of hard work they put. For this reason, opponents to the notion that income inequality is a problem might argue that a free market is based on the idea that innovation and hard work should be rewarded and therefore, trying to fix income inequality will discourage innovation and entrepreneurial spirit (Helpman et al., 2017). Also, using the free market argument, opponents to the income inequality problem might hold that if people believe that their investments and income would not lead to a significant change in their incomes, their motivation to innovate and invest will decrease (Chetty et al., 2014). This argument is likely to win hearts since the entire US economy is built on innovation and hard work and therefore suggesting that fixing income inequality might remove this admirable aspect of the US economy will make many citizens and policymakers to have a second thought. Why Taxpayer Money and Money should be Dedicated to Solve Income Inequality
  • 9. Dedicating time and money to address income inequality is essential for several reasons. To start with, reducing income inequality will boost shared prosperity so that the rich, the middle class and the poor have equal access to quality amenities such as health and education opportunities. Shared prosperity will mean that people from all social classes can reap the benefits of globalization and technological advancement (Rudra & Tobin, 2017). As it stands, the poor and the middle class have seen the ugly face of globalization as companies source for cheap labor in emerging economies. Secondly, a reduction in income inequality is a vital ingredient to a healthy democracy. Notably, extreme inequality can trigger political turmoil where the majority poor rise against the minority rich thus tearing a country apart (Goda et al., 2017). The idea of populism champions the regular people and challenges them to take control over the governing of their country instead of leaving it in the power of few elites. Populism is likely to make a country ungovernable since the everyday people feel that they have been disenfranchised for eons and hence the need to take control of their economic, political and social destinies. Furthermore, reducing income disparity will promote faster economic growth since it leads to a reduction in government welfare spending hence more money can be used in developmental projects such as improving the state of roads and investing in education (Mueller, Ouimet & Simintzi, 2017). Besides, since wealthy people spend less of their income than poor people, putting more money in the hands of the poor and middle class will accelerate economic growth. Thus, it is worth committing time and resources to address income inequality since this will contribute to shared prosperity, healthier democracy and spur economic growth.
  • 10. References Chetty, R., Hendren, N., Kline, P., Saez, E., & Turner, N. (2014). Is the United States still a land of opportunity? Recent trends in intergenerational mobility. The American Economic Review, 104(5), 141-147. Goda, T., Onaran, Ö., & Stockhammer, E. (2017). Income inequality and wealth concentration in the recent crisis. Development and Change, 48(1), 3-27. Helpman, E., Itskhoki, O., Muendler, M. A., & Redding, S. J. (2017). Trade and inequality: From theory to estimation. The Review of Economic Studies, 84(1), 357-405. Mueller, H. M., Ouimet, P. P., & Simintzi, E. (2017). Wage inequality and firm growth. American Economic Review, 107(5), 379-83. Rudra, N., & Tobin, J. (2017). When Does Globalization Help the Poor?. Annual Review of Political Science, 20, 287-307. Saez, E., & Zucman, G. (2016). Wealth inequality in the United States since 1913: Evidence from capitalized income tax data. The Quarterly Journal of Economics, 131(2), 519-578. Tsui, A., Enderle, G., & Jiang, K. (2017). Income Inequality In The United States: Reflections On The Role of Corporations. Academy of Management Review, amr-2016.