A look at income inequality
Income inequality has been an ever increasing problem lately in the United States. Theorists say the difference in income would not be so bad if the gap would stop increasing. Unfortunately however, data shows that the lower 70th percentile's wages are decreasing fairly rapidly and the upper 30th percentile's wages, though gradual, are increasing.
The numbers show that the highest earners in the US make, on average, 52 dollars an hour and that number is rising 0.2% annually. On the lower end, the average wage is around 8 dollars an hour and that number is decreasing 0.75% annually. As the data is analyzed the primary goal to be completed is to understand and discern why this all is happening.
When we look at the facts, inflation has been down lately but so has the nation's wages. Even the slightest bit of inflation will severely affect many lesser earning workers because their income is so low and getting lower. When I first read the article and analyzed the graphs, my first impression was quite surprised. I didn't realize how different and unequal the nation's incomes are. One thing I had trouble understanding was that inflation was low but still wages were low as well. I figured that wages would be higher since the value of the dollar is higher. However, after I did some outside research I found that some theorists say that the reason the wages are lower is because the value of the dollar is higher, meaning the workers do not need to be paid as much. I'm not quite sure how I feel about this theory, as it does sound slightly invalid, but of course, nothing is for sure and economists are scrambling and arguing over the causes of the income inequality.
The income equality needs to improve (minimum wages increasing). The higher wages need to go down a little bit, and that difference has to go to increase the lower wages. It is difficult to raise a family at $7-$8 per hour. Every dollar and cent is important, no matter what economists or theorists say.
ReplyDeleteI don't believe a raise in the minimum wage is a solution to this problem. Minimum wage jobs are not meant to support a family, they are meant to employ people who aren't supporting themselves, not as a career. The issue is a lack of middle class well paying jobs with which it is possible to support someone's own needs or the needs of those who they provide for.
ReplyDeleteI agree with Max. Raising minimum wage is not the solution. I think the government should focus more on the gap between the middle-class and high-class.
ReplyDeleteI also agree with max a raise in minimum wage would cause businesses to either increase the price of products to make up for the cost of having to employ more workers, which would increase the price of all goods and services. Or they would have to employ less people which would cause a higher unemployment rate.
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