This website uses cookies to ensure you have the best experience. Learn more

The Income Inequality Gap Essay

1383 words - 6 pages

Recently, studies have shown that income inequality has many connections that have caused the gap in the United States. According to the research I found, income inequality is connected to corruption, trade, wages of workers, and education. The world income inequality had declined since the twentieth century according to the studies found (Clark). Corruption falls increasing on low income individuals more than higher income individuals. Additionally, the trade theory suggests that the free trade might have level up the income inequality higher within countries by the different patterns of wages and demand for workers who are skilled and unskilled (Silva and Leichenko). Moreover, the education of wealthier people has it easier because the learning efforts of education are unbalanced. Besides, income inequality in the United States is hurting our economy due to the all the issues of corruption, trade, wages, and education. Suggested by Robert H. Frank article called “Income Inequality: Too Big to Ignore,” the income inequality is bad for our economy (Frank).
To illustrate the gap of income inequality we can begin with corruption. The effects of corruption not only affects the growth rate, but it also affect the income inequality too (Dincer and Gunlap). Nevertheless, corruption falls more on low income individuals. Why? According to Dincer and Gunlap, “Individuals who belong to low income groups pay a higher proportion of their income as bribes than the individuals who belong to high income groups,” (Dincer and Gunlap). In other words, people who have a lower income pay more money than higher income people in the social class. To go in deeper analysis, corruption has a tax system which favors the higher income individuals more than it does with the lower income individuals (Dincer and Gunlap). The tax system leads to poor finance programs because it reduces the government’s ability to help. Thus, corruption proposes that since the government is spending money away from programs that could benefits more of the lower income individuals. For examples, the government couldn’t provide public goods like education and health that could help the low income individuals because of the tax system. Yet, the higher income individuals have access to resources that the lower incomes individual don’t have to evade taxes by bribing government officials to lean on their side known as lobbying (Dincer and Gunlap). This research shows that the higher income individuals have a better chance to bribe governments causing the gap in income inequality in the economy because they have the resources to do it.
Meanwhile, Silva and Leichenko purpose that free trade has increased the income inequality in the United States economy, but also within other countries. The trade theory research founded by Silva and Leichenko shows that by changing the patterns of the wages and demands for workers that are skilled and unskilled will affect the inequality of income. According to...

Find Another Essay On The Income Inequality Gap

Zero-Sum Game: The Widening Income Gap

2209 words - 9 pages behind 'the shell game' that led to the widening income gap -- and, subsequently, class division, and the downward spiral of our economic system -- tax breaks and incentives for 'the job creators'. Once, like the rest of us, Hanauer believed the lie. After all, it was in his best interest, initially. But, upon inspection, he realized that that the money produced by 'job creator' tax breaks does not help society - it only produces higher gains

Income Inequality in the United States

1043 words - 5 pages The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of

Income Inequality in the US is Growing

623 words - 3 pages Stiglitz explains the high level of inequality due to the fact that the top US income earners captured a majority of the income growth, widening the gap between them and the low-income earners. This income can be explained through the Heckscher-Ohlin model. The trade between US and poorer global economies causes more of a specialization in what the US is relatively endowed in, capital or skilled workers. This increases the production in capital

Income Inequality in the United States

3442 words - 14 pages Income inequality not only harms us fiscally, but also affects our mental and physical wellbeing; therefore, it is important to identify the right ways to control wealth distribution among people. History Income inequality in the United States has increased and decreased throughout history, but in the recent years, the widening gap has become a serious issue. Income inequality is usually measured by Gini coefficient. According to this method

Women’s Income Inequality and The American Dream

2350 words - 9 pages place and aren’t getting equal pay as men. This also leads to wag gap between the men and women. Both create income inequality for women and affect their American Dream. There is a long history of women having to deal with the “Glass Ceiling”. Over time woman have made progress but more progress is needed to make things equal. Women suffer from income inequality because of the “Glass Ceiling” and wag gap, thus going against the American Dream

Income Inequality and The Civil Rights Movement

1099 words - 5 pages Introduction The issue of income inequality is a crucial piece of your upcoming re-election campaign this fall. Similarly to the Civil Rights Movement and the War on Poverty in the 1960s, a high level of inequality can hamper social cooperation, encourage intra-elite competition, and ultimately during wartime, as illustrated in the Vietnam War, can further exasperate the American people’s frustrations with income inequality. Social Cooperation

Income Inequality in the United States

4067 words - 16 pages have a large amount of America’s wealth are passing bill that benefit them the income gap seems larger then ever. Democracy is founded on citizens write to vote, if the citizens know that their votes do not hold as much weight as the bills corporations are illegally passing through state legislators then the structure of a fair democracy is lost. The inequality is not only economically but it gives corporations a large role in politics. When

The Government's Role In Income Inequality

784 words - 4 pages Income inequality has been a growing problem and is currently at its highest since 1928. Based on statistics, more jobs have wanted people with a college degree more than a person with a high school diploma. A worker with a college degree earns at least 80 percent more than a worker with a high school diploma. This factor has been increasing income inequality along with the changes of family structure. The income of a two-parent family is twice

Tackling the Income Inequality and Promote Opportunity in the US

1859 words - 8 pages 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

The rich and the poor - class-conscious on income inequality

1393 words - 6 pages . This opinion stems from the results of a survey that was conducted early in December of last year. The main idea on this article was to convey a message that there is a rise in people’s perception of class tension between the rich and the poor because of income inequalities. The author’s conclusion is based on a comparison of income inequality to other societal issues such as racial relations, illegal immigration, and young and old

An Overview of Income Inequality in the United States

2267 words - 9 pages Poor? Understanding Income Inequality in the United States." Robert Rector. The Heritage Foundation . 18) See "Two Americas: One Rich, One Poor? Understanding Income Inequality in the United States." Robert Rector. The Heritage Foundation . 19) See Krugman, Paul. At Issue: Is the Gap Between the Rich and Poor Growing?20) See Krugman, Paul

Similar Essays

The Income Inequality Debate Essay

1183 words - 5 pages ENG.215Final DraftChu Tian WuThe Income Inequality DebateHumans had lived in an egalitarian society for 10000 years before we lived in an equal society, as the article " Our Egalitarian Eden "by Pennisi (2014) said. People all desire to live in unequal society because the concept of egalitarianism is printed in our genes. However, after humankind live in unequal society, our civilization still keeps developing and invents a lot of techniques to

The Income Inequality Debate Essay

1391 words - 6 pages ENG.215First DraftChu tian wuThe income inequality debateHumans had lived in an egalitarian society for 10000 years before we lived in an inequality society, as the article " Our Egalitarian Eden "by Pennisi said. People all desire to live in an equal society because the concept of egalitarianism is printed in our genes. However, after human live in inequality society, our civilization still keeps developing and invents a lot of techniques to

The Problems Of Income Inequality Essay

1358 words - 6 pages and Ethnic Inequality). Income should certainly not vary with gender or race. As mentioned in an article of LBO on income and poverty, women make 74% of what men make for doing the same job. For blacks the gap is even larger, they made only 63% percent of whites during the same time period as the women as mentioned in the same article. These discriminatory practices are pure evidence of income inequality. Another section of the negative effect

The Consequences Of Income Inequality Essay

633 words - 3 pages reversed who is deviant (Conrad & Schneider 1980). Unlike the evenly distributed increase in real earnings that marked the period between World War II and the 1970s, the trend in income inequality in the U.S. over the last 30 years has been one of increasing inequality. The share of total income of the top 1% rose from 8% in 1974 to 18% in 2007, and from 9% to 23.5% if capital gains and income from investments are included. For the richest .1