President Obama speech in December 2013 hosted by the Center of American Progress spoke about the high disparities of income in the US, saying that his government priorities is to lowering the income inequality and promotes opportunities, especially to the poorest (The White House 2013). Income inequality in the United States (US) is the fourth highest among the Organization for Economic Co-operation and Development (OECD) member countries measured by the Gini coefficient, a measurement of inequality which intended to show the income distribution of a nations’s resident (OECD 2014).
In the US, the average income of the 10 per cent richest is equal to 16 times as large as the 10 per cent poorest (OECD 2014). Recent surveys have brought up the concern about economic inequality in the US, stating that 67 per cent of American adults are somewhat dissatisfied and very dissatisfied with how the income and wealth are distributed (Gallup 2014). The same survey also stated that 69 per cent of American adults say that the government should do the work to reduce the gap between the richest and everyone else. This paper is about how the new elected US president should overcome the income inequality problem by issuing a sound and feasible public policy to be used in the administrative agenda for the next two years. The proposed policy in this paper is the use of the conditional cash transfer program to increase the investment in human capital as a means to break the income inequality and promotes opportunity.
Statement of Issue: Tackling the Income Inequality and Promote Opportunity
Following the 2016 presidential elections, the issue of income inequalities and opportunity was one of the central campaign issues from the major parties. As the winner of the election, the new elected president and government from the Democratic party is bound by their promise to overcome the income inequality in the US. Therefore, the policy to address income inequality will become the new government administrative agenda for the next two years. Even though there is no single cure to tackle income inequalities and promoting opportunities, the new elected government have to acknowledge the negative effect of high income inequality and must work on the issue by proposing a sound policy solution.
Income Inequality has been the been concern to public policy since it is considered to be a key factor in producing or increasing a wide range of social problems such as teen pregnancy, low education, poor health and increasing crime rate (Wilkinson & Pickett 2009, p. 5). Emerging research about income inequality also argued that it may be the cause of poverty gap and inequality in opportunities (Nolan 2009). The OECD issued a comparative study stating that it is possible that income inequalities is causing low opportunity among class which is consistent with US country pattern on low inter generational mobility (OECD 2008, p. 215).
One of the most crucial things to do...