are wages in the United States increasing or decreasing explain your answer

Solutions

Expert Solution

Wages in the United States are increasing faster almost every year. But this increase in wage rate is not same for rich and poor. It is higher for rich and lower for poor. Wage rate have been increasing faster for the top 5% of people, who are richer than for the bottom 20%, who are poorer. But in terms of percentage the growth of annual wage rate has been higher for the poor than for the rich in the last few years. United States Bureaucratic report says that wage rate in US increased 4.63% in Jan 2018, highest is 13.77% in Jan 1979 and lowest is -5.77% in March 2009.

This increase in wage growth is due to different reasons :

1) There is low unemployment which push the wage rate to increase.

2) Minimum wage hikes raised income of the poor people.

3) Inflation adjusted wage growth was higher from 2007 - 2017.

4) There is wage growth during the great recession among rich earners but since it has become more broadly shared.

More precisely, it can be said that wage rate has been increasing for all, but for poor the growth is small and for reach it is large, generating a wide gap between two groups of people.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Is having a trade deficit necessarily bad for the United States? Explain your answer.

Write a position statement on Minimum Wages in the United States.

Write a position statement on Minimum Wages in the United States. The answer should include the following sections: (1) your topic introduction, (2) your position on the topic, (3) economic arguments against your position, (4) economic arguments for your position, (5) a brief concluding paragraph, and (6) at least three sources which are used in this writing.

Why do you think the United States is a popular place for tourism? Explain your answer

If MPL is decreasing then a. MC is increasing and TVC is increasing at an increasing...

If MPL is decreasing then a. MC is increasing and TVC is increasing at an increasing rate. b. MC is decreasing and TVC is increasing at a decreasing rate. c. MC is decreasing and TVC is increasing at an increasing rate. d. MC is increasing and TVC is increasing at a decreasing rate.

True or False: Explain your answer If wages in nation 1 are lower than wages in...

True or False: Explain your answer If wages in nation 1 are lower than wages in nation 2, but labor productivity is much higher in nation 2, labor costs are not necessarily higher in nation 2.

Which of the following would not be included in United States GDP? A. The wages and...

Which of the following would not be included in United States GDP? A. The wages and salaries of North Carolina State government workers. B. An imported computer laser printer manufactured in Singapore and purchased by a Virginia mail order company. C. A Dell computer manufactured in the United States and exported to Italy for use by an Italian college student. D. Sale of 1000 shares of IBM stock on the New York Stock Exchange valued at the current market price...

The mid-to-late 90s in the United States were characterized by increasing productivity, increasing wealth, and very...

The mid-to-late 90s in the United States were characterized by increasing productivity, increasing wealth, and very optimistic firm and consumer expectations for the macroeconomy. The period became known as the “New Economy” and some overzealous economists even proclaimed that recessions were a thing of the past and we were now on a path of permanent expansion and prosperity. Using the Income-Expenditure model along with the AS/AD model, show and discuss the Short Run effects, and predict any future Long Run...

You are an economic advisor to the Treasurer of the United States. Congress is considering increasing...

You are an economic advisor to the Treasurer of the United States. Congress is considering increasing the sales tax on gasoline by $.05 per gallon. Last year motorists purchased 15 million gallons of gas per month. The demand curve is such that every $.01 increase in price decreases sales by 100,000 gallons per month. You also know that for every $.01 increase in price, producers are willing to provide 50,000 more gallons of gasoline to the market. The legislature has...

You are an economic advisor to the Treasurer of the United States. Congress is considering increasing...

You are an economic advisor to the Treasurer of the United States. Congress is considering increasing the sales tax on gasoline by $.03 per gallon. Last year motorists purchased 10 million gallons of gas per month. The demand curve is such that every $.01 increase in price decreases sales by 100,000 gallons per month. You also know that for every $.01 increase in price, producers are willing to provide 50,000 more gallons of gasoline to the market. The legislature has...

Write a position statement on Minimum Wages in the United States. Please write in at least...

Write a position statement on Minimum Wages in the United States. Please write in at least 1000 words. The answer should include the following sections: (1) your topic introduction, (2) your position on the topic, (3) economic arguments against your position, (4) economic arguments for your position, (5) a brief concluding paragraph, and (6) at least three sources which are used in this writing. Please do NOT copy and paste from another source (Looking for answers not plagiarism).

Subjects