Question

There is little income equality in the U.S. Most people are stuck in the income quintile to which they were born and the rich keep getting richer while the poor stay poor. Defend or refute this statement based upon our reading of the text. short answer

Answer 1

Income inequality has escalated in the U.S over the last thirty years, as income has poured unequally to persons at the very top of the income scale . Literature chiefly points to 3 explanatory reasons of declining wages & escalating income inequality- technologies; trade ; institutions. The prevalence of distinct reasons points to the difficulty of pinpointing the source of inequality.

Of the 3 explanations for escalating inequality, the technology-& -education reason is the most prominent. This theory concentrates on the huge wage premiums for employees with high levels of skills/ education. The demand for competencies has consistently risen across developed nations. The skill premium, thus, is an outcome of skills not being made available at a rate to keep pace with demand. The suggested solution to inequality propelled by these trends is raising education & job training chances for workforce so they can obtain better paying employment.

A 2^nd explanation is trade / globalization. Scholars point to expansion in trade / offshoring as a source of income inequality.

The 3^rd explanation suggests that American governmental policies developed an institutional structure which led to escalating inequality. Since the later part of 1970s, de-unionization, deregulation, taxation modifications , monetary policies, & other policies diminished wages.