Question

give three example of how can the Income Inequality Gap in the US be Improved?

Answer 1

Increase the minimum wage- Higher salaries for the lowest-paid employees have the potential to lift about 4.6 million people out of poverty and add around $2 billion to the total real income of the country. Increasing the minimum wage does not, however, harm jobs nor hinder economic development.

Expand the Earned Income Tax- The EITC has been shown to have a positive effect on families in recent years, elevating annually about 4.7 million children above the poverty line. Increases in the EITC will pull more children out of poverty while providing more economic support for the working poor, especially single parents who join the labor force.

Build assets for working families- Policies that promote higher savings rates and lower the cost of asset-building for working and middle-class households will provide more economic stability for families struggling. New programs that automatically enroll employees in pension plans and offer a contribution bonus or a federal match for retirement savings accounts may help lower-income households create wealth. Home ownership and exposure to decent, low-cost financial services are both essential pathways to income.

Invest in education- Differences in early education and the standard of schools are the most significant components that lead to structural disparities over generations. Education investments, starting with initiatives like Head Start and Universal Pre-K in early childhood, will increase economic mobility, lead to increased prosperity and decrease inequality.