Economic inequality is when there is an uneven distribution among a population, the United States has a huge gap between the rich and everyone else and this gap is only increasing. Sometimes economic inequality is referring to income inequality, wealthy inequality, or a wealth gap. Economic inequality is increasing by wages, interest on bank accounts, shares of stock, etc. The data that was collected by various studies and economists shows that economic inequality started around the beginning of The Great Depression.
Around the early 1980s, many businesses choose to sell at least some percentage of the company sometimes to make a lot of money and sometimes to reduce the risk of losing it all. Once this is done, mangers must uphold an exponential amount of profit, to keep the investors happy. At the time even though businesses are making more money now, payroll has …show more content…
Due to it being the nations largest employer, they are setting new standards by reducing employee pay and benefits. Nothing can be done, because they are a popular company, which means competitors must follow them. “Recent government tax policies have helped investors more than low wage earners. Deregulation means less stringent investigations into labor disputes. The U.S. minimum wage remained at $5.15 an hour until 2007. Ten years later, it’s only risen to $7 an hour.” (The Big Squeeze, Steven Greenhouse, pp. 12-14.) Another example of how economic inequality has is technology. Technology replaced employees at many factory jobs. Only those who are trained in technology can get a chance to receive a higher paying job. The Federal Reserve is the central banking system for the United States. The federal reserve was created to keep the United States from having a bank panic-when everyone withdrawals large sums of money at the same time-. In recent studies, the Federal Reserve are to blame for economic
Around the early 1980s, many businesses choose to sell at least some percentage of the company sometimes to make a lot of money and sometimes to reduce the risk of losing it all. Once this is done, mangers must uphold an exponential amount of profit, to keep the investors happy. At the time even though businesses are making more money now, payroll has …show more content…
Due to it being the nations largest employer, they are setting new standards by reducing employee pay and benefits. Nothing can be done, because they are a popular company, which means competitors must follow them. “Recent government tax policies have helped investors more than low wage earners. Deregulation means less stringent investigations into labor disputes. The U.S. minimum wage remained at $5.15 an hour until 2007. Ten years later, it’s only risen to $7 an hour.” (The Big Squeeze, Steven Greenhouse, pp. 12-14.) Another example of how economic inequality has is technology. Technology replaced employees at many factory jobs. Only those who are trained in technology can get a chance to receive a higher paying job. The Federal Reserve is the central banking system for the United States. The federal reserve was created to keep the United States from having a bank panic-when everyone withdrawals large sums of money at the same time-. In recent studies, the Federal Reserve are to blame for economic