Income Inequality

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Inequality exists around us. One of the inequalities is the income received by a person or member of a family. Income inequality refers to the various incomes within a given population. This income includes wages, salaries, pensions, and interest derived from the assets. The economy nowadays is very dynamic and is constantly growing, but the top is absorbing the biggest portion of the growth. As Arthur Okun once said: “Inequality is the price America pays for a dynamic, efficient economy; we may not like it, but the alternatives are worse. As long as the bottom and the middle are moving up, there is no reason to mind if the top is moving up faster, except perhaps for an ideological grudge against the rich—what conservatives call the politics of envy” {NationalJournal}.

This kind of inequality is especially large in the United States. In the States there are four social classes: the upper class, the middle class, the working class, and the lower class. Of these four classes the most inequality exists between the upper class and the lower class. A high percentage of all citizens’ work in a service related job. These types of jobs pay far less than the manufacturing jobs that dominated the American economy. With the present economy looking bad, most employers are cutting down on employees and possibly replacing them with lower paying or part-time employees. “…Office towers of trademark American companies on both coasts were facing outward, using cheap labor and lax regulations across the world to make strong profits, which flowed to the top corporate officers at twice the rate of even the 1990s” {Suskind 89}. The competition between people for the job is high in the United States and that gives a chance for the employers to lower the wages. Globalization is another actor in the inequality growth. “Globalization has had an impact, as rich countries have been sending more of their commodifiable, generally less-skilled jobs offshore, which has displaced many...
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