Economic Inequality Economic inequality is a growing issue on a global scale with many believing that it is part of the world we live in and there is nothing that can be done to solve it. In fact, there are many different contributors to economic inequality that can be solved individually to reduce its overall impact. Economic inequality is the difference between the rich and poor and has been an issue for quite some time. An economic balance must be found as a large wealth gap can hinder long term growth, but a gap that is too small reduces productivity. One way to solve this would be to implement wealth redistribution programs to provide the poor with higher education and reduce the impact of social classes. The government should implement
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Opponents will say that raising the minimum wage will help to bring people out of poverty. After a recession one would expect economic growth, but this can be slowed through low pay across the country(Economist 1). An increase in the minimum wage would result in less workers as businesses cut costs to stay open. A minimum wage increase to $10.10 would result in five hundred thousand lost jobs in the nation as found by the 2014 congressional budget office(Puzder 1). The employees that remain are then forced to work harder for the small increase that they receive in their pay. Minimum wage increases hurt the poor more than it helps them as more jobs are lost compared to the money that will be made by the poor. Economist David Neumark at the University of California-Irvine has found that less than twenty percent of earning benefits from an increase in minimum wage would reach people living below poverty(Puzder 2). Despite having the highest minimum wage in the country up until recent, $10.74, San Francisco 's income inequality does not show that it helps. According to a Brooking Institute report, San Francisco ranks second in income inequality in major U.S. cities only behind Atlanta(Puzder 2). Raising the minimum wage gives the illusion of helping the income gap, but in reality it only increases income inequality. Businesses will turn to automation as wages rise because of the decreased cost and increased efficiency that they provide over traditional labor(Puzder 2). Overall, a nation wide minimum wage increase would result in thousands of lost jobs and will hurt the current wage
Opponents will say that raising the minimum wage will help to bring people out of poverty. After a recession one would expect economic growth, but this can be slowed through low pay across the country(Economist 1). An increase in the minimum wage would result in less workers as businesses cut costs to stay open. A minimum wage increase to $10.10 would result in five hundred thousand lost jobs in the nation as found by the 2014 congressional budget office(Puzder 1). The employees that remain are then forced to work harder for the small increase that they receive in their pay. Minimum wage increases hurt the poor more than it helps them as more jobs are lost compared to the money that will be made by the poor. Economist David Neumark at the University of California-Irvine has found that less than twenty percent of earning benefits from an increase in minimum wage would reach people living below poverty(Puzder 2). Despite having the highest minimum wage in the country up until recent, $10.74, San Francisco 's income inequality does not show that it helps. According to a Brooking Institute report, San Francisco ranks second in income inequality in major U.S. cities only behind Atlanta(Puzder 2). Raising the minimum wage gives the illusion of helping the income gap, but in reality it only increases income inequality. Businesses will turn to automation as wages rise because of the decreased cost and increased efficiency that they provide over traditional labor(Puzder 2). Overall, a nation wide minimum wage increase would result in thousands of lost jobs and will hurt the current wage