Question

Do the patterns about what has happened to the distribution of income in the US over the past 40 years concern you? Why or why not? Please use TWO PAGES to explain your answer.

Answer 1

Income inequality has been ever rising since past 40 years due to various technology advancement, government policy and taxes on income and various other additional taxes.

An average median income in 2001 was around 45000 dollars which has now touched 60,000 dollars keeping inflation indexing approach. However the poorer have becone poorer and richer have become richer day by day. The Gini Coefficient too has risen dramatically.

Thanks to various government policies like TNAF And Unemployment Insurance the inconr inequality slightly reduced and stabilised in recession era Which erstwhile could have been altogether different picture.

After trump administration the economy seems to be robust and prosperity at its peak and decreasing corporation taxes which means much fatter packages for senior level managers and hence income inequality is all set to take hit.

As per CBO statistics thr bottom 99 percentile of household constitute 7000 dollars as yearly incone which is fairly low. Addibg up is the unemployment factors which has shooted because if immigration and introduction of H1B visa tighter rules which prefer more skilled an d postgraduate students with minimum annual pay at 1,10,000 dollars. These increase inequality to large extent.

The Fed however has proposed many such reforns to reduce income gaps like more emphasis on Public development at bottom percentile with infusion of funds towards child programs, underprivileged and malnourished children, scholarships and affordable higher education, tax subsidies at lower end and higher income taxes at high income at top 1% households.

More and more public funding and corporate funding is required to do make this grand success and proper implementation and dissemination of resources as well as high quality corporate governance standards must to meet above programs.

Minimum wages and Trumpcare policies are another set if mega Reforms which will make this goal a big reality . Taking this forward future looks certain and less worrisome because of actions undertaken and hence Prosperity in UsA looks sooner way then its expected.