Income Inequality - 861 Words

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. Education and wealth have a big impact on income inequality. Education and wealth go hand in hand when talking about income inequality. When a family is more wealthy, they can afford a better education. One article from ACE states that â€Å"currently in America, getting a postsecondary degree—in particular a bachelor’s degree—generally results in higher incomes, greater job choice, satisfaction, and security, as well as other outcomes considered good for our society, such as voting and community service.† This is important because if†¦show more content†¦A sad fact that needs to be considered when looking at this is from an article that Kellogg Insight put out. It states, â€Å"black job seekers are offered—and accept—less compensation than white job seekers. In fact, racial discrimination among employers could account for at least a third of the raw wage gap between black and white workers.† This shows how discriminatio n impacts income inequality. Finally, workers abilities and monopoly power also have an impact on income inequality. Ability also creates income inequality. When someone is more able to do a job, they will get that job more easily than someone who is not capable of doing a job. This being said, someone who is only able to work a construction job will not be able to be a cancer researcher. The two jobs will have a different income connected to them. The cancer researcher will make more than the construction worker when it is broken down. This causes an income inequality because not all jobs pay the same amount. The average annual pay for a construction worker is anywhere between $21,139 according to PayScale. The average annual income for a cancer researcher is $61,662 according to PayScale. That is approximately $40,000 difference between the two. Monopolies also play a major role in income inequality. For one, it makes it harder for small business owners to make it. These small business owners don’t have the opportunity to have a business becauseShow MoreRelatedThe Inequality Of Income Inequality Essay2206 Words   |  9 Pagesâ€Æ' Abstract: One of the social issues concerning power, status, and class in American society today is income inequality. The income gap between the social classes has increased drastically throughout the last few decades, creating a significant gap between the wealthy and the poor. This gap has become so large that the middle class has nearly diminished, creating a social class comprised of the rich and the poor. The significant gap between the two social classes is unhealthy for the economy becauseRead MoreThe Inequality Of Income Inequality1229 Words   |  5 PagesIncome Inequality 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 economistsRead MoreIncome Inequality3032 Words   |  13 PagesIncome inequality Name Date Abstract In any given population, there is a difference between what people within the population earn. The uneven distribution of income in any given population is income inequality. In order for there to be income, there has to be several sources of income. 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[N.p.]: Westview Press, 1999. eBook Collection (EBSCOhost). Web. 15 May 2013. Frank, Robert. â€Å"Income inequality: Too Big to Ignore†. Graff, Gerald, Cathy Birkenstein, and Russel Durst. They Say, I Say: The Moves That Matter in Academic Writing : With Readings. New York: Norton, 2012. 432-447 Print. Murray, Harry. Deniable Degradation: The Finger-ImagingRead MoreIncome Inequality And Poverty989 Words   |  4 Pages â€Å"Income inequality has no necessary connection with poverty, the lack of material resources for a decent life, such as adequate food, shelter, and clothing. A society with great income inequality may have no poor people, and a society with no income inequality may have nothing but poor people† - Robert Higgs. When people think of income inequality they picture poverty and people not having basic necessities. However income inequality is not just a connection to the poor. 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