Question

What are some factors that contribute to the U.S.'s economic inequalities? Why is the U.S. one of the countries that has the highest economic inequality?

Answer 1

Following are the factors that contributes to U.S's economy inequalities:-

1.Technology:-computerization & automation have eliminated many of jobs upon which american historically relied.New inventions make the young or less educated workers jobless.

2.Globalization:-technology also spurred the export of jobs to other countries as trade barrier dropped & the whole workd became a marketpalce.The growth of MNC's with alliegence to no particular government & their transfer of intangible assets such as business koneledge,training etc. has result loss of job to amercian workers.

3.The rise of superstar:-modern communication technology turns competition into a tournament in which the winner is richly rewarded,while runner up get for less.

4.The decline of organised labour:-thr share of workers represented by labor union has dropped by half.That has shrunk their capacity to bargain for higher wages & benefits.

5.Changing & breaking the rule:-in both public & private institutions admission procedure at top colleges favor the childern of donors & past gratuates.So it became a reason of economy inequality.

following are the reasons why US economy has highest inequalities:-

-wages are determined by labor market:-in a free market wages are determined by the demand & supply of labor skill.if the demand for labor skill is low but the worker with skill are more that willing to do the work then wage rate will be low & vice versa.

2.eduaction affects wages:-higher qualified workers get high income.less qualified get less income.

3.Gender does matter:-so many countries there is a gender income gap.In the labor market in america the median full time salary for women is 77% of that of men.

4.Personal factors:-it is generally belived that innate capabilities play a part in determining the wealth of an individual.Hence individual have different set of anilities may have different wealth which leads to inequalities.
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