On the flip side, technology could help fight income inequality as well. With the greater use of technology, it can make it easier to live in a smaller home and rent objects at time when you want them through the Internet. This would allow lower income workers to live closer to the city where the rent is high and might able to get a higher paying job. In addition, as computer human interfaces become more user friendly (with voice control, touch screens technology), in the future it might rise the relative return to a less-skilled labor.
Although improvement in computer technology and widening income distribution seems to have a positive correlation, other factors also widens the gap. When government adopts polices to enforcing labor laws (eg. minimum wage and weaker worker union), will reduce workers' bargaining power. The wage for an ordinary worker will be low and firms will have a higher profits to compensate for top executives. Moreover, tax cuts made by Margaret Thatcher (former prime minister of the United Kingdom) and Ronald Reagan (former president of the US) in the late 1970s and early 1980s has cause the income inequality to increase.
Technologies have over the past years have replace jobs for a middle-class person. On the other hand, it has provided higher …show more content…
Technological change is a challenge faced by the U.S economies as the share of the national income is mostly going to the people who are rich. I personally believe that income inequality in the developed economies will continue to increase in the short run. However, in the long run with regulations and taxation laws (eg. a worldwide tax on financial speculation, to prevent tax haven) the gap will become smaller in the near future. Improvement in technology provide humans with new opportunities for better living and jobs with higher wages, but not at a pace that we
Although improvement in computer technology and widening income distribution seems to have a positive correlation, other factors also widens the gap. When government adopts polices to enforcing labor laws (eg. minimum wage and weaker worker union), will reduce workers' bargaining power. The wage for an ordinary worker will be low and firms will have a higher profits to compensate for top executives. Moreover, tax cuts made by Margaret Thatcher (former prime minister of the United Kingdom) and Ronald Reagan (former president of the US) in the late 1970s and early 1980s has cause the income inequality to increase.
Technologies have over the past years have replace jobs for a middle-class person. On the other hand, it has provided higher …show more content…
Technological change is a challenge faced by the U.S economies as the share of the national income is mostly going to the people who are rich. I personally believe that income inequality in the developed economies will continue to increase in the short run. However, in the long run with regulations and taxation laws (eg. a worldwide tax on financial speculation, to prevent tax haven) the gap will become smaller in the near future. Improvement in technology provide humans with new opportunities for better living and jobs with higher wages, but not at a pace that we