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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...

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