Income Inequality

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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 “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, “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 discrimination 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 because

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