INEQUALITY AND SOCIAL CLASS IN THE UNITED STATES

Inequality in the US is characterized by slow and uneven wage growth with the few wealthy people accumulating more money than ever. Statistics show that one-quarter of workers in America take home less than $10 per hour, which is below the federal poverty level (Saez, 2018). The rich are getting richer since the 2008 financial crisis. For instance, 2012 saw ten percent of workers earning fifty percent of all income. The rising inequality is affecting the country negatively both in the urban and financial centers. Even the unions never have an enormous economic impact compared to decades ago. Their small economic role has seen the gap between the CEO and the worker grows eight times in 2016 compared to 1980s. Considering inflation, wage growth in the US has been on a slow growth in the last three decades. The nation’s low earners get little or no increase in their wages.

The causes of United States income inequality find their roots in the shift in the global economy. Competition in the global marketplace is increasing, incomes growing and the workforces are getting more skilled.  The first solution to this tragedy is strengthening unions.  Just like during the Reagan administration, they contribute positively to disrupting economic inequality (Saez, 2018). Secondly, the government should provide affordable and quality education for everyone. This tool will help the poor and marginalized people in the US to ascend to the middle class. Thirdly, United State should combat discrimination and invest in women. Discrimination has a way of expanding wealth gap hence creating income inequality. Fourth, the government should increase employment training to invest in human capital. This will increase individual wealth and in turn boost the country’s labor force.

References

Saez, E. (2018). Striking it richer: The evolution of top incomes in the United States. In Inequality in the 21st Century (pp. 39-42). Routledge.

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