Income Inequality In America

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Income inequality is a prevalent issue in the United States. It’s a hot topic among politicians and economists. The Friends of Bernie Sanders website describes it as, “…income inequality is the great moral issue of our time, it is the great economic issue of our time, and it is the great political issue of our time (Friends of Bernie Sanders. n.d.). Income inequality is the gaps in earnings between America’s most affluent and the rest of the country (Income Inequality. N.d.) America’s income poorly distributed across its citizens. The one percent dominates the remaining 99% and the distance continues to grow. According to Emmanuel Saez at UC Berkeley, the bottom 99% incomes grew 3.9% from 2014 to 2015, but the top one percent incomes grew 7.7% (Saez, n.d.). Average wages of the bottom 90% have stayed relatively the same since 1986, however, the top 1% have tripled between 1980 and 2012 (Monaghan, 2014). This shows the continuous progression of income inequality. Not only is the inequality between the 1% and 99%, but also the 0.1%. They receive nearly 198 times the income of the bottom 80% (Income Inequality. N.d.). What caused income inequality? The most commonly found reason for this phenomenon is corporations outsourcing their workers overseas. They hire laborers who work for much less than Americans could. China is an example of where corporations outsource. They have established factories and specialize in cheap labor making it the most profitable.
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