Inequalities for all
The income distribution gap is getting wider between the wealthy and the middle-income earners in the United States. A comparison of the earning scale between the top and the average workers is what defines inequality. In 1978, a typical male worker earning was 48 dollars, while that of a top worker was 393 dollars. However, by 2010, an average male worker made 33 dollars, which is less than he earned before. On the other hand, the wealthy received more than twice their earnings. Today, 400 Americans have more wealth than half of the total American population.
Paradoxically, the wealthy class plays a significant role in accelerating the rift between them and the middle class. In this case, the wealthy spending rate does not match the earning scale. The wealthy spend too little money and save the rest in offshore accounts. Saving Money only generates interests but reduces the amount circulating in the economy. Therefore, the rich do not create enough economic activity. Little spending inhibits the creation of social utilities, which would intern provide jobs for the unemployed.
The United States government took a role in the persistence widening of social inequalities. The United States government sets up rules that end up hurting the middle class while benefiting the wealthy. Since 1950, the gross domestic product has been rising, the average hourly earnings rose to 1970 and flattened to date. Robert explains a case where President Reagan fired all the air traffic controllers involved in a strike. This firing marked the onset of the decline of labor unions. Moreover, employers aggressively discouraged the formations of unions and busted existing unions.
Not only does the cost of wages and labor result in inequalities, globalization, and technology also contribute to the widening of the inequality gap.
Assembly and manufacture of most of the products sold in the United States take place in other countries. Job losses occur when the production process scatters all around the world. Therefore, little activities in the United States companies result in the undercutting of wages. Moreover, automation in the manufacturing industries leads to the shedding of workers. A combination of all these transformations results in reduced pay. Social inequality directly links to the level and quality of education. During the great prosperity, the high percentage of an educated, highly skilled workforce lifted people from poverty and generated the most significant middle-income population. Since the 1970s, high costs in high education continues to cause a rift between the middle-income earners and the wealthy.
Question 2
I acknowledge my classmate’s observation of the government’s failure to tax the wealthy and subjecting the middle class to high taxes as backwardness. I think that this is true since the firms owned by the wealthy generate a lot of profits. Taxing these profits will go a long way in availing more money in the economy. As a result, unemployment will significantly reduce, in the long run, the gap between the wealthy and the middle-income earners will reduce. However, in my opinion, considerable taxation should be implemented on the wealthy. It is through their multi-million companies that a significant number of middle-income earners are employed. Keeping on mind that the wealthy compete with other top companies worldwide, over-taxation might force the wealthy to replace the human workforce with modern technology. If the companies adopt advanced technology, then the middle-income earners will lose their jobs, and the gap will widen further. In addition, the government should make policies that promote the affordability of education for all citizens. Empowerment and facilitated training equip the middle class with skills that assist them in coping with globalization.