Every society has income differences between the rich and poor. Gaps in income, wages, and wealth continue to grow today and the challenge to level the playing field has become increasingly more difficult. There are consequences to disparity, and unfortunately, there are also penalties to attempt to redistribute income. There are many factors that can cause this discrepancy of wealth. For years society has taken steps to attempt to remedy it, but to no avail.
Extreme income disparity is not difficult to find in the United States. “In 2009 talk-show host Oprah Winfrey earned $275 million, golfer Tiger Woods earned $110 million, and singer Beyonce Knowles earned $87 million. In contrast… A full time minimum-wage worker at a fast-food restaurant …show more content…
There were 43.1 million people in poverty. The 2015 poverty rate was 1.0 percentage point higher than in 2007, the year before the most recent recession.” (https://www.census.gov/library/publications/2016/demo/p60-256.html)
There are many causes of income inequality. Overall, the market system is tolerant of a high degree of income inequality because it rewards individuals based on the contributions that they make, or the resources that they own, in producing society’s output. Some of the aspects that contribute to inequality are ability, education and training, discrimination, preferences, unequal distribution of wealth, market power, and connections.
Everyone has different physical, mental and aesthetic abilities. Physical coordination or strength could lead to a high-paying professional sports endorsements. Those blessed with excellent mental abilities have a much better chance learning skills necessary to become a doctor or lawyer. Few have the talent to become famous musician or artist or even have the beauty to become a runway model. Others have very weak mental capacity and might have to find work in low-paying careers or may not be capable of earning an income at all. Most people fall somewhere in between both …show more content…
“Productivity has increased at a relatively consistent rate since 1948. But the wages of American workers have not, since the 1970s, kept up with this rising productivity. Worker hourly compensation has flat-lined since the mid-1970s, increasing just 15.5 percent from 1979 to 2013, while worker productivity has increased 132.8 percent over the same time period.” (http://inequality.org/income-inequality/)
Possibly the most compelling contributor to the growing income inequality has been an increasing demand by many firms for workers who are highly proficient and well-educated. Industries such as computer software, business consulting, biotechnology, health care, and Internet industries, which require highly skilled workers, have either recently emerged or have expanded greatly. Since highly skilled workers remain somewhat scarce, their wages have been driven up. The wage difference between the more skilled and less skilled worker becomes more disproportionate.
“The basic argument for an equal distribution of income is that income equality maximizes total consumer satisfaction (utility) from any particular level of output and income.” (McConnell, Brue, Flynn, economics 19th
Extreme income disparity is not difficult to find in the United States. “In 2009 talk-show host Oprah Winfrey earned $275 million, golfer Tiger Woods earned $110 million, and singer Beyonce Knowles earned $87 million. In contrast… A full time minimum-wage worker at a fast-food restaurant …show more content…
There were 43.1 million people in poverty. The 2015 poverty rate was 1.0 percentage point higher than in 2007, the year before the most recent recession.” (https://www.census.gov/library/publications/2016/demo/p60-256.html)
There are many causes of income inequality. Overall, the market system is tolerant of a high degree of income inequality because it rewards individuals based on the contributions that they make, or the resources that they own, in producing society’s output. Some of the aspects that contribute to inequality are ability, education and training, discrimination, preferences, unequal distribution of wealth, market power, and connections.
Everyone has different physical, mental and aesthetic abilities. Physical coordination or strength could lead to a high-paying professional sports endorsements. Those blessed with excellent mental abilities have a much better chance learning skills necessary to become a doctor or lawyer. Few have the talent to become famous musician or artist or even have the beauty to become a runway model. Others have very weak mental capacity and might have to find work in low-paying careers or may not be capable of earning an income at all. Most people fall somewhere in between both …show more content…
“Productivity has increased at a relatively consistent rate since 1948. But the wages of American workers have not, since the 1970s, kept up with this rising productivity. Worker hourly compensation has flat-lined since the mid-1970s, increasing just 15.5 percent from 1979 to 2013, while worker productivity has increased 132.8 percent over the same time period.” (http://inequality.org/income-inequality/)
Possibly the most compelling contributor to the growing income inequality has been an increasing demand by many firms for workers who are highly proficient and well-educated. Industries such as computer software, business consulting, biotechnology, health care, and Internet industries, which require highly skilled workers, have either recently emerged or have expanded greatly. Since highly skilled workers remain somewhat scarce, their wages have been driven up. The wage difference between the more skilled and less skilled worker becomes more disproportionate.
“The basic argument for an equal distribution of income is that income equality maximizes total consumer satisfaction (utility) from any particular level of output and income.” (McConnell, Brue, Flynn, economics 19th