The Problem Of Income Inequality - 1159 Words

Income inequality is increasingly becoming a significant concern for many countries around the world. The income difference between the highly-educated, skilled, wealthy class and the poor, low to mid-skilled workers is growing larger and larger. In fact, the incomes of the rich are increasing significantly, while the low skilled workers’ incomes have been declining (The Economist, â€Å"Wealth Without Workers†). According to The Economist, real median wages have been decreasing since 2000 in half of the member countries in the Organisation for Economic Co-operation and Development (OECD). In the United States, there was a 4% increase from 1980 to 2012 in the share of national income that was distributed to the top 0.01% (The Economist, â€Å"True Progressivism†). Canada is facing a similar problem of rising inequality. The income gap is attributed to several casual factors. One major reason is slow economic growth. Rates of growth are measured through changes in the Gross Domestic Product (GDP), which is the measure of economic activity in a specific time period. This GDP measure can be calculated by using the production function. It measures the total output from several components, which include labour, capital, human capital, natural resources, and total factor productivity. The analysis of economic growth is usually focused on the output per worker, which is also known as labour productivity. According to The Economist, when an employer hires more workers and ensures that theShow MoreRelatedThe Problem With Income Inequality992 Words   |  4 Pagesbecause of the income inequality I assure to all those looking for the dream, inequality has always been there and we should not allow anything to stop us from achieving what we want. Like many working Americans, I never took the time to think about how income inequality affected us and how immense it has become. The problem with income inequality is its rapid increase, and the lack of effort to close that gap between the rich and the poor. According to Robert Franks in â€Å"Income Inequality: Too Big toRead MoreThe Problem Of Income Inequality1076 Words   |  5 PagesIncome Inequality is a major problem that has been going on in America for decades. Many people feel that it barely exists today, but those people are very uneducated and don’t really care about the huge problem in front of them the many people that feel that way are highly uneducated, and seem to not really care about which has been gradually increasing instead of decreasing. Unfortunately, there’s not much that can be done, only of course if the poor class of people decide to actually educate themselvesRead MoreIncome Inequality : A Problem Of Concern Since The 1920 S853 Words à ‚  |  4 PagesIncome Inequality in America Income inequality has been a topic of concern since the 1920’s. Never has it been of bigger concern than now. Since the year 2000, the separation between the haves and have not has widened tremendously. I don’t have issue with those that earn more being taxed more, but I do have an issue with how it is distributed to those that are less fortunate. From what I understand, around 350 people make up the 1% of those that have excessive wealth in our country but don’t quoteRead MoreThe Effects of Wealth Inequality in the U.S.1484 Words   |  6 PagesAnthony Giovenco Political Science Inequality Paper 12-18-14 The Effects of Wealth Inequality in the United States Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health andRead MoreEconomic and Social Costs of Inequality in Australia785 Words   |  4 Pagessocial costs and benefits of inequality in distribution of income in Australia. Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income. Income inequality can lead to an increase in theRead MoreGlobalization Has Severely Reduced The Barriers That Exist Between Countries1624 Words   |  7 Pagescountries and facilitated inequality throughout the globe. Global inequality refers to the disparity in wealth between countries, which creates an array of problems for low income countries; global inequality can be perceived from a World Systems Theory, which asserts inequality stems from countries exploiting one another, or from a Modernization Theory, which articulates low income countries need to adapt to modern values and institutions to escape inequality. Global inequality refers to the disparityRead MoreIncome Inequality in the United States and France648 Words   |  3 PagesIncome Inequality is â€Å"The unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population.† (Investopedia). Some believe income equality is the biggest problem of the 21st century, President Obama believes it to be â€Å"the defining challenge of our time† (white house). Some economist believe that increase inequality has a correlation effect with higher rates of healthRead MoreJohn Stuart Mill And Income Inequality1721 Words   |  7 PagesMill and Income Inequality Many great economic thinkers throughout history has offered various differing yet interrelated views and ideas that may prove useful to the analysis of current issues in modern economics. A persistent issue in the modern economy is income inequality whereby the distribution of income among the population is unequal. This means that the gap between the rich and the poor increases over time if the issue is not appropriately addressed. In exploring the issue of income inequalityRead MoreThe Ambiguity Of Income Inequality1143 Words   |  5 PagesThe Ambiguity of Income Inequality Pundits say that income inequality has been one of the greatest downturns of our country’s growth and development, however a puzzle exists where economics and politics meet that does not make the solution to income inequality easy to find. Political leaders, economists, and bankers all agree that policies have appealed more to the interests of the governing class than those of the ordinary people. The comments surrounding this topic mostly stem from the strongRead More Increasing the Minimum Wage Will Reduce Income Inequality Essay1252 Words   |  6 Pageswage does not even lift a family out of poverty. -- Jon Corzine Income inequality has been a major problem facing American society for decades, but has recently become a major concern. I personally believe the major gap between the income of the rich and poor is a not just, but is not a major concern for the government and society. If the Federal Government addresses other major concerns facing American citizens the inequality will be adjusted due to other changes. The government needs to step