Addressing Income Inequality: Causes and Solutions in America

School

San Jose State University *

*We aren’t endorsed by this school

Course

100W

Subject

Philosophy

Date

Jan 9, 2024

Type

Pages

Uploaded by CaptainStraw101509

Dominick Partida PHIL 186 Sec 04 Professor Jordan 07 December 2020 Paper #2 The United States of America is a country made up of corporations, people, and money. All three of these things play a huge role in the economy day in and day out. Income inequality is defined as the distribution of money unevenly across the US population. The United States has one of the highest margins of income inequality that include the rich and everyone else. Income inequality is viewed as a problem by most and a blessing by just a few. The answer to this gap may never be fulfilled, but the debate will always be on the table as the gap has significantly increased over the last thirty years. In economics terms, income inequality is the large disparity in how income is distributed between individuals, groups, populations, social classes, or countries. It is a major part of how we understand socioeconomic statuses, being how we identify the upper class, middle class, and working class. It's impacted by many other forms of inequality, including wealth, political power, and social status. Income is a major factor in managing quality of life, as it serves as a means to access healthcare, education, housing, and so on. I believe that income inequality varies by social factors such as sexual identity, gender identity, age, and race or ethnicity, leading to a wider gap between the upper and working class. I believe that income inequality definitely has a determination on how individuals who are in low income classes will become successful in their future endeavours and the government definitely needs to find a solution to lessen the gap between the rich and poor. Income inequality has definitely been an ongoing issue in our society that we have yet to

have some sort of solution to fix this ongoing issue. I would like to talk about the big gap that takes place between the wealthy and low income classes based on their household income. According to an article, Income Inequality in America, written by Kimberly Amadeo, In 2018, the top 20% of the population earned 52% of all U.S. income. Their average household income was $233,895. The richest of the rich, the top 5%, earned 23% of all income. Their average household income was $416,520. Now we look at a different perspective of the bottom 20% of the population and how they stand up to the top 20%. The bottom 20% only earned 3.1% of the nation’s income. The lower earner's average household income was $13,775. 4 Most low-wage workers receive no health insurance, sick days, or pension plans from their employers. They can't get ill and have no hope of retiring. That creates health care inequality, which increases the cost of medical care for everyone. Also, people who can't afford preventive care will wind up in the hospital emergency room. In 2009, half of the people (46.3%) who used a hospital said they went because they had no other place to go. They use the emergency room as their primary care physician. These are some of the few examples that most low income individuals have to deal with on a daily basis, some aren’t even privileged enough to receive no health insurance,sick days or pension plans from their employers. I believe that a society in order to narrow the gap between the wealthy and low income classes we should definitely be investing in more opportunities for low income individuals in their education and provide more resources just as much these wealthy individuals get since most low income individuals are already at a disadvantage for not receiving the same resources as a wealthy individual. Education is just a powerful factor in improving economic mobility. Education increases the income that generates greater economic growth. Over a lifetime, Americans with college degrees earn 84% more than those with only high school degrees.A

McKinsey study found that this achievement gap has cost the U.S. economy more than all recessions since the 1970s. (Amadeo 2020.) As a society, I believe this is one of the main factors that we are able to contribute as a whole in order to give individuals the resources they need to be successful. Equity in education says that society should provide everyone the basic work skills of reading, writing, and simple arithmetic. It should prohibit discrimination based on gender, ethnic origin, or socioeconomic status. Equity in education has two dimensions. The first is fairness. It means making sure that personal and social circumstances are not obstacles to achieving educational potential. Examples include gender, socio-economic status, or ethnic origin. The second is inclusion. It ensures a basic minimum standard of education for all. For example, everyone should be able to read, write, and do simple arithmetic. The two dimensions are closely intertwined: tackling school failure. The government should provide the bottom two- fifths access to education and employment training. Investing in human capital is the best way to increase individual wealth and improve the labor force. Equity in education would bring everyone up to at least a minimum standard. It would be a better solution than increasing welfare benefits or providing a universal basic income. (Amadeo 2020.) There are vital steps as a society that I believe that we can take to lessen the gap between the wealthy and low income individuals. The first four steps improve the design of educational systems. Most schools assign children from an early age to either college-bound or vocational tracks. This often discriminates by gender, race, and income. Instead, the OECD says tracking should be delayed. Second, poor-performers should be given extra training so they can "catch up." Third, this includes GED programs. Fourth, provide a college education for vocational workers so they can manage in higher-tech manufacturing. Steps five through seven concern the classroom. The OECD's fifth recommendation is to stop failing students. Instead, give them

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

intense intervention in specific skill areas. Finland does this, so only 1% of its teenagers can't read. Sixth, work with parents more to get their support of their child's school work. If this is impossible, then provide after-school programs for those children. Seventh, help immigrants and minority children attend mainstream schools. For example, give them intense language training. Steps eight through 10 suggest targeting scarce school funding to those most in need. Step eight is to focus on early childhood education. The ninth recommendation says to give grants to children in low-income families to keep them in school. Step 10 is to set school targets for student skill levels and school dropout rates. Focus resources on those schools with the worst scores. ( Amadeo 2019.) I believe these are vital steps to take in the right direction in order to balance the inequality that takes place in our education system. I believe it is the most vital step we need to take in order to impact income inequality in America. Overall, I believe that Income inequality is present in every society due to differences in gender, race, region, education, and many other factors. To understand the effects and nature of income inequality, it’s crucial to review various ways in which it can be measured. The key to economic opportunity is a college degree conferring higher earrings for those who hold the degree than those who do not. Overcoming inequality through education is substantial and includes different levels of education in developing and developed societies. Some causes of income inequality in the U.S. include gender differences, Disparities in the growth of price index and life expectancy between rich and poor. But the most important one is to allow everybody to reach their full potential because that way not only individuals benefit, but society as well.

References Amadeo, Kimberly. “How Equity in Education Impacts the Economy.” The Balance , www.thebalance.com/equity-in-education-4164737. Amadeo, Kimberly. “The True Cause of Income Inequality in America.” The Balance , 18 May 2020, www.thebalance.com/income-inequality-in-america-3306190.

Related Documents