How Does Inequality Affect Economic Inequality

Unfortunately, the same factor that contributed to Nike’s exponential growth (low-cost labor and production) also contributed to hurting Nike’s public image as a leader in “athleticism, health and fitness, and innovative marketing and design” (Locke, 2002). Nike was criticized for unethical practices by their subcontractors, which included underpaid workers, poor working conditions, child labor, and abuse (Locke, 2002).

The highly recognized name brand—Nike— fails to notice the faults that are happening in factories that are violating a few disturbing rules. The company’s reputation has decreased due to demands and claims Nike; implying that they utilize sweatshops to produce more products at a lower pay. The company has been sued numerous times for abusing and exploiting their employees in factories for years. Another problem that Nike has faced throughout the years was making employees work in poor environments that affected the health of many— which contributed to being abused by the manager for not going to work. Nike distributes and sells merchandise of high quality for a high value. The company is giving the satisfaction of quality service to their

The closer to 1 a country is the more unevenly the income is distributed in that country. According to the CIA’s public database, the Gini coefficient of the U.S. was .40 in 1997. This number was not too bad compared to Brazil’s .59 at the time (the world’s highest). By way of contrast, a decade later Brazil experienced high economic growth and managed to cut its Gini coefficient by nearly a tenth while the U.S. increased to .45 during the 2007 year. The trend continued to rise with the U.S. reaching new heights of .48 in 2014 according to the U.S. Census Bureau. However, the Gini is only a snapshot of a single aspect of an economy. like any measuring index the Gini coefficient has its flaws. Absolute and relative levels of inequality are tough to measure, which is why income inequality is a convoluted topic. For instance, a hypothetical country with three people of yearly incomes of $650, $1500 and $10000 would be counted as having the same level of inequality with a three person country with incomes of $65,000, $150,000 and $1,000,000. The oversimplification of measuring income inequality is one of the biggest drawbacks of the Gini coefficient. Numbers can create a hyperbolic perception. My dollar may stretch further in mainland China in terms of purchasing power but that alone is not indicative of a better economy. While I may be able to rent a decent hostel for a weekend stay in Beijing, catch a bus to the

According to the OECD, the term inequality in the opposite of equity can be defined as evenness

Economic and income equality have risen significantly in the United States over the years. In 2013, the top 1% accounted for roughly 20% of America’s income, before taxes. According to the Congressional Budget Office, the average income of the top 1% of America’s population has “grown by 275 percent between 1979 and 2007,” even after taxes. In stark contrast, the middle class has experienced growth of about 40 to 60% and the lowest income population has only experienced growth of about 18%. This resulted in the richest households nearly tripling their share of the country’s income while the majority struggled to keep up.

What is inequality? It is the difference or variation in size, amount, rank, quality, social position or the fact that one group is more privileged than the other, or it can be based on the unequal opportunity of certain groups on the society. Based on the book ‘’social problems’’ by John J. Macionis, he said that there is an unequal distribution of economic resources, which means that one part of the population has more they suppose to have that the other part does not have enough to support itself. Since 1970s, economic inequality has increased in the United States. In particular, the rich have gotten a lot richer. Economic inequality affects the society and the youth in several ways. Income inequality can lead to the downfall of the country's economy, or it can make it difficult for poor members of the

We live in a day and age that is immensely affected by wealth distribution and the rapid growth of inequality. With the middle class disappearing as we speak and President Obama’s presidency coming to an end, many are curious about where America is headed next. The Center for Research on Globalization reports that “the yearly income of a US household dropped by a massive 12 percent, or $6,400, in the six years between 2007 and 2013” (Doman). Yet, many Americans remain oblivious to how seriously the economy’s crisis is affecting them and still place hope in the “American Dream”. Meanwhile, the rich continue to gain wealth while the poor are divulging quickly

Income inequality is a pressing issue in the United States of America. “The unequal distribution of household income or individual income is called the Income Inequality”. It is presented as the percentage of income to a percentage of population. Joseph Stiglitz, a Nobel-prize winning economist is a professor at Columbia university and the Chief economist at the Roosevelt Institute talks about income inequality in one of his interviews with The Atlantic (Nov 2, 2015). He believes that income inequality can be stopped by the citizens and the politicians of the United States before it gets worse. He states that in the years between 2009-2012, 91 percent of all income growth was relished by the wealthiest 1 percent of Americans, and the bottom 99 percent did not benefit.

In the fall of 1976, the group ABBA released their hit Money, Money, Money. This song reflects on the working class individual working hard every day for what, to make money and pay the bills, fantasying what it would be like to be the rich man. Money is the driving force of our society and without money what would our world be like. Everyone wants money, everyone works for money, but are we being paid a fair dollar for what we do or is income inequality playing a role in our paycheck?

Income inequality is been a problem in this country for awhile now. Though the median household income has risen about thirty percent the top one percent has skyrocketed nearly two-hundred percent. Though unemployment is falling the and the distribution of income is rising. Even President Obama said economic inequality is the defining challenge of our time.

Income inequality is talked about frequently in modern society. Most places around the world are feeling the weight and effects of income inequality. According to businessdictionary.com, the definition of income inequality is, “A measurement of the distribution of income that highlights the gap between individuals or households making most of the income in a given country and those making very little (“What is Income Inequality”).” This definition holds true for all countries including the United States. Economists look at all aspects of a person’s life and household to decide their position on the scale of income inequality. In order to reach an accurate depiction of income inequality a person’s education, age, possessions, and expenses need to be analyzed. Once these issues are addressed, one can start to look at how income inequality affects society as a whole.

Introduction: Impacts of income inequality affects the overall progress of economies in different ways. Economists have been focusing on to determine the relationship between the growing inequality and economic growth over the years. Chris Tilly is one of the researchers who has made an attempt to investigate this issue by analyzing several theories and providing examples. He is currently a professor in the Urban Planning Department at UCLA and a member of Dollar and Sense, popular economics journal, as well. His article: “Why inequality is bad for the economy: Geese, golden eggs and traps” published in Wealth Inequality Reader in 2004. According to Tilly, inequality has a negative outcome on the economy while equality is the trigger for growth.

1. How do you define economic equality? For example, is economic equality simply making sure everyone has equal income, or is it enough to provide all equal opportunity to earn income?

Nike, being a large-scale, athletic company, uses many raw materials in the production of their products, some that may be dangerous or even toxic to the human body, especially to children. Harmful gasses can be released in the factories, and have been harming the young adults and teenagers in these factories. “Footwear factories have heavier machinery and use more dangerous raw material, including solvents that cause toxic air pollution”(Cushman). Not only are the chemicals released in these factories toxic, but the machinery can be dangerous if not used correctly, making the workplace more dangerous for teenagers and children, and more harmful to their bodies. These factories can be unhealthy for the teenagers and even adults working there, but can also be seen as cruel to the workers in

Income inequality is the disparity of the income distribution between the rich and the poor