Income Inequality In 1970's Essay

Improved Essays
Washington State University, Econs 102, Section 2, Christopher
Weizhong Liu
ID: 11487094
Writing Assignment #1

Why Has Income Inequality Been Rising Since the 1970’s?
The propositions that look for the causes of growing inequality in the US either in the dependency culture or in the biased the government policy are entirely inconsistent with the findings of David Autor. However, the statement that Americans are falling behind because of laziness can be viewed as slightly resonant with the article if laziness should be interpreted as unwillingness to enhance one’s skills rather than to work in general. In his article, Autor claims that the major reason for rising inequality in the US is the recent drastic growth of the wage premium related to higher education and
…show more content…
Quite to the contrary, he suggests that the measures taken by the government in the 1980s and the 1990s (such as developing student grant and loan programs) might have helped to save the earnings mobility from expected decline. The inequality has been growing not due to some purposeful policy but due to natural changes in the industry that called forth larger demand for qualified workers. At the same time, Autor does not deny that efficient public policy could be helpful to decrease the inequality in the US. The measures he considers the most beneficial are those that can cultivate the skills of the next generations, such as increasing the quality of school education, providing broader access to postsecondary education, improving public health and nutrition. Implementation of progressive tax policies and setting of new minimum wage rules are identified by the author as some of the more nearer-term measures that can improve the situation. Therefore, the second proposition is compatible with the article of Autor only as far as policy suggestions are

Related Documents

  • Great Essays

    Annotated Bibliography MacEwan. " Black-White Income Differences: What's Happened?" From Opposing Viewpoints in Context. N.p., 2016. Web.…

    • 1816 Words
    • 8 Pages
    Great Essays
  • Superior Essays

    The Great Divergence by Timothy Noah explores the potential causes and solutions for the crisis of rising income inequality in America. I would label the book as enlightening and informative because even though I knew income inequality was an issue in the United States, I had a very limited knowledge as to the causes and solutions of this growing problem before reading Noah’s book. I found Noah’s book to be written in a much more comprehensible manner than that of previous books read for this class due to the more commonly used style and rhetoric that I am more accustomed to reading. The book has a logical structure as it starts by dispelling commonly believed myths about the causes of income inequality and ends with presenting possible solutions.…

    • 1577 Words
    • 7 Pages
    Superior Essays
  • Decent Essays

    In Joseph E. Stiglitz's essay Rent Seeking and the Making of an Unequal Society, he talks about inequality and how drastic it has become. Inequality in society was made by the people that benefited from it. The inequality level in America isn't normal compared to other countries and even the past in America it is an unnatural inequality. This is very unusual even in a recession, the economy weakens and wages drop which causes the price of goods to drop. But now even with the wage drop, many firms are still making good money.…

    • 927 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    In Gary S. Becker’s and Kevin Murphy’s article, “The Upside of Inequality”, they argue that the increase of the income inequality gap is beneficial to our economy because of the reason behind it; now that more people are investing in their “human capital” by pursuing higher education, the higher rewards from this is the cause of inequality. They elaborate on how the rise is due to the fact that education is emphasized in the labor market, such that more people who are investing in education have higher rewards. The income gap is growing because of the increasing opportunities to advance. Becker explains that the potential of advancement through education is higher than ever, it has especially beneficial for people of color and women. With…

    • 818 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    In “The Upside of Income Inequality” Gary Becker and Kevin M. Murphy shed light on wealth gap, the reason behind it and the lesser thought perks it has. Throughout the article, the writers claim that it should be noted that inequality accord with being appreciative towards the return on investments made in human capital i.e. it rewards those who educate themselves more and are more adept and so is a positive catalyst toward the wage gap. According to me, the writers came across quite biased and ignorant. Though they did make some valid points regarding education and wage gap. It seemed as if they were quite determined to prove that education was the only reason behind the issue and disregarded important issues like unemployment, inherited wealth…

    • 1050 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The way this is validated in this writing is the statistic that the all American workers are having a harder time than ever climbing the economic ladder, and that ways of getting ahead in the past are now becoming obsolete. From this paper we learn, according to Carl and Wiemer that, “If in you were in the bottom 10 percent of wage earners in 1993, you had only a 6 percent chance of clawing your way into the top third 15 years later. And the reverse is true: If you were in the top ten percent in 1991, your chance of falling to the bottom third is only 5 percent” Shown through statistics, the article shows definitive proof for its claims that their is low mobility in the US economy. It is the logical explanation that helps to further the argument that American dream is becoming more and more out of reach to many. Another reason that economic advancement is becoming harder, is the because the feature that has been crowned king of getting ahead, education, is no longer the aid it used to be, again, making it harder for people to take a conventional path to get…

    • 504 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Godfrey Hodgson stated that the economic inequality has increased so dramatically since 1970 because of changes to the market and powerful conservative Republicans ability to dominate over the economy since President Nixon’s presidency. The economy that was prevalent since the New Deal was changed so it could focus on the free market (Hodgson 16-20). During 1945 to 1970 wages and standard of living increased at a significant pace but as the 1970s came the economy had high unemployment, high inflation and standard of living was at a stand still (Smith, Lecture Notes, week 2). Americans that were employed not only suffered because wages were not increasing but also because of the decrease in retirement benefits and the lack of health insurance…

    • 145 Words
    • 1 Pages
    Improved Essays
  • Improved Essays

    As many Americans try and move on from the harsh start to the 20th century by means of a corrupt government, unfavorable workers’ union, and low pay. The Roaring 1920s brings along much-needed leisure time for citizens and somewhat better unions for workers. Unaware to eyes of many other countries, the United States is facing a pressing issue that natives do not take very lightly. That is wealth inequality. As time rolls along people are irritated at national corporations that are not regulated by the government, consistently continue to receive high amounts of wealth, where many other workers possibly get a mere 25 cents.…

    • 1521 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    For many years, many Americans “considered the prospect of growing income inequality to be unacceptably undemocratic.” (Noah, 18). Income inequality is at its highest level since before the Great Depression and it is a situation that divides Americans. The best way to promote equal justice in American and the best way to maintain strong economic growth is to have…

    • 304 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    After reading the “The Income Inequality Debate”, I started to think more about the financial situations that I am currently in and how I am preparing myself for the future. The videos were very informing on the topic and helped me actually visualize what was going on. The video “Wealth Inequality in America”, seemed like a more detailed version of “Is America Dreaming?: Understanding Social Mobility” so I got more from it while watching it. What stuck out most to me were the aspects of education and how it really influences those percentages.…

    • 419 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    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.…

    • 484 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Wealth Inequality Essay

    • 567 Words
    • 3 Pages

    In 1976 , the wealthiest one percent of Americans owned 19% of all the private material wealth in the US Today, they own over 40% of all wealth. Their share now exceeds the wealth owned by the bottom 92% of the US population combined. (Edward N. Wolff, Top Heavy: A Study of Increasing Inequality in America Twentieth Century Fund: 1995). From 1976 till the present , the power of the wealthy has increased greatly meaning their power has increased as well. When a certain group constantly gains power they will abuse it and this can be seen with the unfair wealth distribution in this country.…

    • 567 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    According to the Census Bureau in 2010, “there were 42 million poor people in the United States,” and a large portion of those who reside in the middle class are approaching the poverty line, thus, augmenting the amount of people who live in the lower class. As a result, income inequality has become a paramount topic in recent times, especially in the 2016 election. In addition to politicians and other government members discussing this gargantuan issue, professors, journalists, and others have written income inequality, and provided ways to fix the issue. The authors Robert B. Reich, Gregory Mantsios, Alan Ajas, Daniel Bustillo, William Darity Jr., and Darrick Hamilton are experts within the field of economics and labor; however, all of these…

    • 1579 Words
    • 7 Pages
    Superior Essays
  • Superior Essays

    In a capitalistic based economy such as the United States, it creates incomes that are small and large. Having an unequal amount of large or low incomes is called income inequality. Income inequality has become a major problem in the United States, increasing 24% from 1968 to 2012” (Cochran). The gap between the rich and the poor is growing at an ever increasing rate. In the United States the gap is measured by relative poverty, or “being below one-half the nations income” (Cochran).…

    • 1676 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Introduction Job training is fundamental to helping public assistance recipients and minimally skilled workers achieve lasting economic stability. With the majority of welfare recipients either unemployed or minimally employed, and recent “welfare-leavers” in low-wage positions with no benefits or skills, the notion of self-sufficiency is unreal. To that end, one strategy to address this facet of the poverty issue is the adoption of workforce development initiatives. Factual Background The 1980’s and 1990’s saw an increase to productivity and income growth as compared to the lull of the 1970’s.…

    • 1034 Words
    • 4 Pages
    Improved Essays