Income Inequality 1970s
Income Inequality 1970s
Since the 1970s, income inequality that is also known as economic inequality has immensely increased. It means the income share of the economy is being directed to a certain group and, as a result, leaving other groups to suffer. Recently, research shows that people who tend to share the income of a state are from the top class level, and then follows the middle class and lastly the lower class level people who are not even aware of how resources are distributed in the entire country. Therefore, it leaves people to conclude that poor people will continue to suffer as the rich continues to become richer. It is thus important to understand how different aspects like globalization, technology, a decline of unions and other factors influence income inequality and how the situation affects individuals and the economy at large.
First, due to globalization more people were able to travel from one country to another since border barrier ware no more in operation. Also, the majority of developing countries could not afford to sustain the population regarding jobs. As a result, people would move to settle in America where jobs were plenty. Rich people enjoyed the increase of foreigners since they would grab any form of a job with any amount of money (Reich 20). The situation only got worse for the Americans in the middle-class level. Due to the high population of foreigners, they would not dictate the wages they felt comfortable with. Moreover, the rich preferred working with foreigners since they would offer the same services at a lower wage. As a result, many of the Americans lived in poverty while the rich continued to expand their territories.
Also, the growth of technology affected the lives much middle-class level Americans but the rich continued to flourish. Technology has mechanized almost everything in the United States. Machines that work the same as men are constructed each day. However, the rich can afford to purchase such machines since they are thought to perform well compared to humans. The situation only affects the living standards of the middle class in America as most of them rely on manual work to sustain their families (Reich 14). Also, the majority of people are losing their jobs as rich people are replacing their positions with robots. Many people thought of technology being a good approach towards improving humanity, but it is for few individuals while the majority are regretting it.
Since early days, unions were formed to help workers agitate for their rights as well as protecting both corporate operations and individual working at a certain sector. Moreover, unions would ensure workers grievances are raised and responded to as soon as possible. As the labor unions decline majority of the middle-class people are suffering discrimination, low wages among other challenges since no one is there to talk on their behalf. Also, corporate are doing all sort of assault to workers and at the end only the workers who end up losing everything. Therefore, most of the middle-class level workers are persevering and continuing to work with low wages, poor conditions while the corporate keeps its profits increasing.
Lower taxes tend to increases investments. Rich people are said to pay more taxes compared to poor people basing on their rates of earning. Therefore, the tax cut will always favor the rich because they will increase their income. On the other hand, the poor suffer a lot because they are paying taxes, and yet they are earning pennies. Also, rich people paying taxes do not affect their income since they are already loaded with money. The problem comes on the side of the middle-class people whose earnings are less and yet they are required to pay the same amount of tax with the rich. Taxes affect middle class regarding consumption and other activities that are estimated to reduce the GDP of the American economy by 1.4. The government should leverage the middle class and the rich by giving middle-class good jobs with better wages or else they are not supposed to pay any tax. On the contrary, the rich will continue to grow as their businesses improve and the middle class will remain to suffer forever.
The movement of people within social strata or the change in social status tends to be affected by income inequality by far in America. The difference is seen between the rich and the middle-class individuals. For instance, people from rich families have the highest potential to succeed in life. The fact is their parents take them to advanced schools as well as attending quality medical schools. Also, parents from the rich families always guide their children on the right moves as they have all that it takes to convince their children. On the contrary, poor people struggle to survive and hence to improve their living standards is a bit challenging. Also, they experience the problem of mockery and discrimination from the rich in schools, health centers and other social institutions (Krugman 42). As a result, the gap between the rich and the poor is continuing to increase as income inequality rises each day.
Income inequality does not only affect the economy of the United States but also it is a threat to the democracy of the states. The increased inequality tends to affect the political system by developing a have haves-not society. It is evident that the poor will always carry out their activities regarding what makes them happy. On the other hand, the rich does their operations about their interests. As a result, United States has two communities where the two have different objectives. However, the government has been left with the task of liberating people rather than improving the states. The poor have also reached an extent of not involving in any political activity. They have decided to stay apart from the political system as it is protecting and helping only the rich.
Income inequality also follows social problems in the whole of the United States. It bases on how social amenities like healthcare services, schools, and social centers are utilized and delegated among people (Reich 22). The main problem that comes along with income inequality is the challenge of health care facilities and how the rich are dividing up with the poor. Therefore, it is evenly clear that the rich have their hospitals while the poor have theirs too. On the contrary, the poor are suffering since the services they are receiving are of low quality. Research shows that most of the poor people die as they try to survive in a hospital. Also, the poor are facing problems related to the education sectors. The education sector that the rich are exposed to is different from that of the poor and hence causing them a great problem in their future career.
However, to curb income inequality requires the effort of all individuals in the whole of America. It is not a single person operation as it entails all the people; the rich and the poor. Moreover, the government has a very hard task of in the fight for economic inequality. It is supposed to ensure resources are evenly distributed among people regardless of their status. It will ensure the gap between the rich and the poor reduces which will eventually end as people get back to their normal lives (Enrich 45). The rich should also unite with the poor as they have what it takes to change the face of the country. They should take the time to identify what they can do best and help the poor improve. Moreover, public schools should be modified and unified. It will ensure both rich and poor come together and work to achieve their goals all together. Also, the rich should take the initiative of increasing the wages for the middle class up to a reasonable level. Lastly, the rich should be taxed differently with the poor. Bearing in mind, the rich are being taxed the same way as their employers will continue to raise controversies between the two groups.
In conclusion, income inequality has so far been a problem to the United States. The government is still working on leveraging people, but the solutions offered are bearing no fruits. It is because the problem concerns the whole nation and not only the government. The rich should learn their responsibilities and so do the poor. They should realize the nation is built by all people and so they should come up and break the gap in between.
Reich, Robert. Why the rich continues to be rich and the poor poorer. New York, N.Y: Routledge. 2008. Print.
Krugman, Paul. Confronting inequality. Princeton: New York Times. 2008. Print.
Enrich Barbara. Nickel and dimed. New York: Times, 2004. Print.