Devon Kaminski
Soc-309
Essay 4
Ch. 2
1. What factors lie behind rises in income inequality in the U.S. in recent decades?
While many factors play a role, the few that strike as most pertinent are declines in earnings growth, which is a rise in workers that make less money and an ever growing gap between the higher skilled and lower skilled workers, an economical shift from production of goods to production of services, shifts in demand for high/low skilled workers which opened up temporary positions with little to no benefits, a change in the working age group (thanks to the baby boomers), a rise in uneducated and less-expensive labor in the form of immigrants, declining unionization, downsizing in industries (which could mean cutting less skilled workers), globalization and of course government policies like minimum wage changes, budget cuts and tax reforms. (Hurst, 27.) 2. Outline the dominant historical trends in wealth distribution in the U.S. …show more content…
“Uniform evidence about a trend toward increasing inequality before 1776 does not exist, but after 1776 the trend toward increasing inequality is present everywhere.” (Hurst, 28) In contemporary U.S. the top 1 percent of the wealthiest have seen a rollercoaster of rises and falls from the 1920’s into the 2000’s, they still remained the richest. Most household in the middle and bottom rely on wages instead of stocks and investments. Once debt becomes higher, the inability to save and accumulate wealth becomes harder and harder and directly affects the next generation. (Hurst,
Soc-309
Essay 4
Ch. 2
1. What factors lie behind rises in income inequality in the U.S. in recent decades?
While many factors play a role, the few that strike as most pertinent are declines in earnings growth, which is a rise in workers that make less money and an ever growing gap between the higher skilled and lower skilled workers, an economical shift from production of goods to production of services, shifts in demand for high/low skilled workers which opened up temporary positions with little to no benefits, a change in the working age group (thanks to the baby boomers), a rise in uneducated and less-expensive labor in the form of immigrants, declining unionization, downsizing in industries (which could mean cutting less skilled workers), globalization and of course government policies like minimum wage changes, budget cuts and tax reforms. (Hurst, 27.) 2. Outline the dominant historical trends in wealth distribution in the U.S. …show more content…
“Uniform evidence about a trend toward increasing inequality before 1776 does not exist, but after 1776 the trend toward increasing inequality is present everywhere.” (Hurst, 28) In contemporary U.S. the top 1 percent of the wealthiest have seen a rollercoaster of rises and falls from the 1920’s into the 2000’s, they still remained the richest. Most household in the middle and bottom rely on wages instead of stocks and investments. Once debt becomes higher, the inability to save and accumulate wealth becomes harder and harder and directly affects the next generation. (Hurst,