Question

Please explain the factors that have contributed to increased income inequality since 1969, i. Discuss each of the following as it contributes to increased income inequality. 1. Greater demand for high skilled workers 2. Demographic changes 3. International trade, immigration, and the decline of unionism 4. The great recession of 2007 5. Any other factors that you can identify

Answer 1

Answer:-

Income difference could be a dominating conception in major countries. it's additional visible in capitalist countries. It primarily shows why changes within the financial gain of the actual country happens. There ar many factors that have contributed to the enlarged financial gain difference since 1969. they're explained as follows:-

1:- greater demand for high skilled employees:-

because of modification within the technology of the country the demand for skilled staff over the unskilled workers enlarged. Since the demand for these have exceeded the provision of the skilled staff the wages of those staff have enlarged leading to financial gain difference.

2:- Demographic changes:-

financial gain levels are forever varied because of gender and racial changes. throughout the 1970s and also the 1980s large number of low masterful and low skilled folks entered the labour force that resulted in increase in financial gain difference throughout that decade. There had conjointly been larger families headed by single lady leading to increase in financial gain difference.

3:-International trade, immigration and decline of unionism:-

The immigration of the non- Europeans enlarged to America throughout 1970-2007, wherever most of them had lower earnings and lower education as compared to the natives of the then Americans. any the competition in international trade any other to say no of unions and therefore the staff lacked talks powers. These overall enlarged the difference within the country.

4:- The great recession of 2007:-

once the collapse of the $64000 estate market of America in 2007 the encumbered backed securities and alternative by-product product declined at a really fast pace that enlarged the state levels usuriously and things got additional worst once the bankruptcy of the Lehman Brothers in 2008 that was the fourth largest investment bank of the country.

5:- others:-

Other factors like organisation of the country, corporatism etc contributed to the financial gain difference of the country.