The Importance Of Income Inequality

Throughout decades, education inequality is still one of the most deliberate and controversial issues in the United States. Thus far, the privilege or right to receive education has not attained the level of equality throughout the nation. Poor districts obtain less educational funds while rich districts obtain more, which create an immense gap between the quality of schools in poor and rich areas. In other words, the education gap is the root of inequality in America. Inequality in education is linked to the major problems in the society. The need for studies to be done to find ways of overcoming these inequalities is very inevitable. The means of mitigating these inequalities are important for the entire world. This is something of great interest due to the fact that children need quality education which is a pillar for a guaranteed future. Generally speaking, the distinctions among races, genders, and classes in the society have caused the educational inequality in America.

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 because it provides too much power in the hands of those with high social status.

In Income Inequality: Too Big to Ignore, Robert H. Frank paints a picture to the reader about the struggles of pier pressure. For example: an upper-classmen chooses to buy a big house and fancy clothing. This acts as a “frame of reference” to the changes and norms of the society. If he spends money on something nice, a middle-classmen will then go and decide to do the same thing, and then a lower-classmen…all the way down the social hierarchy. This is what he calls an “expenditure cascade.” Robert relates this with a person’s downfalls, which can be traced due to lower income inequality. Income inequality basically means that in a given quantity, the dispersion of income is underlined by the gap between individuals and or households with

The issue of income inequality in the United States is complicated and does not have a definite answer. Income inequality can be measured in a few different ways. The first measurement for the income inequality in a country is to look at the percentages on households and group them into income categories, called distribution by income category. The second measurement for income inequality is called distribution by quintiles or fifths. This is when you divide the total number of people, households, families into five groups called quintiles to examine the percentage of total before tax income received by each quintile. Each quintile would then be ordered by income and households in the category.

Income Inequality is a major problem that has been going on in America for decades. Many people feel that it barely exists today, but those people are very uneducated and don’t really care about the huge problem in front of them the many people that feel that way are highly uneducated, and seem to not really care about which has been gradually increasing instead of decreasing. Unfortunately, there’s not much that can be done, only of course if the poor class of people decide to actually educate themselves and get a higher education. One says poor class, simply because that’s how they’re classified. There are five types of levels that Americans are classified as, and they are: Upper Class, Upper Middle Class, Middle Class, Working Class, Poor. The highest percentage of Americans fall in the Poor department, and it has been that way for decades, and will continue to be that way for decades to come.

Income inequality is increasingly becoming a significant concern for many countries around the world. The income difference between the highly-educated, skilled, wealthy class and the poor, low to mid-skilled workers is growing larger and larger. In fact, the incomes of the rich are increasing significantly, while the low skilled workers’ incomes have been declining (The Economist, “Wealth Without Workers”). According to The Economist, real median wages have been decreasing since 2000 in half of the member countries in the Organisation for Economic Co-operation and Development (OECD). In the United States, there was a 4% increase from 1980 to 2012 in the share of national income that was distributed to the top 0.01% (The Economist, “True Progressivism”). Canada is facing a similar problem of rising inequality.

Income inequality is one of the greatest problems facing the United States today. It is important for everyone to understand what this means and why this is a problem.

The debate over whether income inequality should be an important topic in comparison to other issues that our nation faces. Income inequality an be defined as “the extent to which income is distributed in an uneven manner among a population (dictionary.com).”According to the Census Bureau who reported that there has been a “rise in income inequality in America, the gap between rich and poor in New York is getting worse (CQ Researcher, pg. 991)”. Right America has one of the largest inequality gap, in comparison to India and the African nation of Burkina Faso (CQ Researcher, pg. 991)”. This debate over income inequality has been inconsistent. Some do not see an issue with the way that money is distributed, while other see this issue as a major problem that our nation faces and strategies/ policies needs to be implemented to address this issue. I

An important factor in the creation of inequality is variation in individuals’ access to education (Becker, et. Al, 2007). According to Bosworth et. Al, (1999) education in a field that requires or demand a high number of workers, creates high wages for those with advance education. As a result, those who are unable to afford good quality education or choose not to participate in schools or colleges, generally receive much lower wages and thus it lowers aggregate savings and investment. In particular, the increase in family income and wealth

Education reform can be taken to educate the public on what exactly wealth inequality is and its effects on the United States’ economy. Changes such as expanding public education to all members of the socioeconomic ladder, further regulating charter and private schools, and ensuring the children of tomorrow are learning what is really happening in the United States through current events education can help solve the obfuscation of wealth inequality. Providing lower-cost education to members of the middle and lower classes could fight the decline of social mobility in the United States caused as a result of wealth inequality. Although education reform will certainly cost the United States in the short-term, long-term effects such as higher wages, improved health, reduced dependency on social welfare programs, and increased volunteerism are well worth the initial costs. Although investing in education is a viable option, there are other ways to solve the problem of wealth

citizens will have two substantial impacts on income inequality. First, the measure will increase the top tax brackets’ relative share of the federal tax burden, slowing the rapid growth of the income gap. Second, the additional revenue will increase available funding for education, social programs, and infrastructure. Strengthening these programs will supplement incomes for poorer families and enable children of low-wage parents to access higher-paying jobs in the future. In the 1970’s, then-Governor of Arkansas Bill Clinton argued for a sales tax increase to fund education since the program would “benefit the children and grandchildren of the working class and poor more than any other people” (Newman 51). While Clinton correctly believed that “educational improvement benefits low-income families in the long run,” a better solution would focus on progressive taxes to not “impose burdens on poor families” (51). In the nineteenth century, the United States’ “investment in education…spread throughout the economy, creating a reservoir of skill that outstripped the rest of the developed world” (14). If America once again makes such an investment, it will drastically strengthen its economic position by tapping into the ability currently lying dormant in lower-income households. Millions of children with the potential to become leaders in politics, business, and education are hampered by an education system that lacks the resources to adequately

First, the increased income inequality in the United States is due to increasing problematic issues in the education sector. Education plays an increasingly vital part in the economic success in the United States as technological transformations and globalizations increase. A weakening middle class leads to decreased improvements in the education system, while a stronger middle class leads to increased

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.

Will Ricciardella put it this way, “many proposals to help the poor, like raising taxes, actually end up hurting them.” The biggest challenge is to find a reform that maximizes the tradeoff between benefits and costs. The best solution for any problem deriving itself from inequality would be education reform. This is the only solution which directly addresses why inequality would be a problem, would be the least complex and have the least negative effects. Unlike other policies, education reform would not necessarily have the issue of being a disincentive investment on investment or taking high wage jobs. It would also not have the effect of limiting the supply of jobs in a tradeoff for higher wages which would help create a permanent

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. These sources of income may be combinational or independent per person receiving the income. Income may result from wages, rent, bank account interests, salaries or even profits made in business transactions ( Stiglitz, 2012).