Microeconomics : Income Inequality For Fast Foodservice Industry
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Microeconomics: Income Inequality for Fast Foodservice Industry Income inequality is a very important concept to talk about when we really go deep into microeconomics. In the United States alone there are sectors that have income inequality that has been in our headline news for the past years, and to top off the list would be fast foodservice. There has been a lot of studies that looked into CEO-to-worker compensation ratios across all labor forces that show fast foodservice industry is the most unequal sector in American economy (Jaimeson, 2014). This inequality of wages can easily be explained and will be fully detailed in this paper. That is why it is important to look into cause of income inequity from a foodservice industry…show more content… We can see this inequality from CEO position having their pay doubled in 2009 for the decade of the year 1990s, which was quadrupled average pay than for the year 1980s.That was also eight times the CEO average for all the decades if the mid-20th century. With this we can see over the years to decades we can see CEO pay has increased a lot more than expected to be, and still growing. Looking at hourly wages of non-corporate pay that has been the same since the early 1970s. Studies have shown between 1947 and 1972 it was said to have hourly wages only rose 76%, but ever since it has only risen 9% (Income Inequality, n.d.). While CEO pay has been growing exponentially, we can see other hourly pay hasn’t been increasing since the 1970’s which is hard to believe.
CEO Pay Compares to Typical Workers According to a report created by Ruetschlin (2014) stating that compensation practices that is seen within companies of fast food industries is “out of line” with rest of our economy. We can see that CEOs have the greater and greater economic rewards while workers don’t seem to reap those rewards so luckily. In Ruestschlin studies, she was able to piece together that CEO average pay since 2000 has quadrupled in numbers than the typical workers. That in 2013, the average CEO took home a whopping $23.8 million dollars unlike typical works that doesn’t even have that much if we were to combine each worker in every food establishment. We can