(reduces economic gap between social classes). People would become richer but it’s at the expense of the government becoming poorer. The government will have to take out more loans and have more debt. Cons: USFG shouldn’t pay reparations to African Americans Cost America pay they don’t have As we speak, America’s debt is at 18.2 trillion dollars and rising. If we pay every slave minimum wage for their work, we would have to pay trillions of dollars.
Rise in Social inequality have been proven by the wide salary gap between the rich and the poor. For instance (Sawhill & Morton, 2008) states that during the years between 1979 and 2004 “After tax income of the poorest one- fifth of Americans increased by 9%, the richest one- fifth of Americans saw an increase of 69%”. Almost half of the total household salary was earned by “Twenty percent of the richest households in the United States in 2004”as claimed by (Arcs & Zimmerman, 2008), while According to (Haskins, n.d.) 70% of income was gained by 10% of the richest
Paul Krugman author of the article “Confronting Inequality” stresses the inequality of our social classes in the United States, he uses statistics to demonstrate the staggering consequences of this inequality within our social classes. Krugman emphasizes the fact that a majority of our wealth is owned by about one percent of the population, which is leaving the middle and lower class at an extreme disadvantage. One example Krugman uses is education; children that have wealthy families, have a higher percentage of finishing college than those of lower income families, proving the statement that Krugman was accentuating, “Class-inherited class- usually trumps talent.” The parents within this middle to lower class have been exceed their financial
Samuel.2006). Huddle(1990) also found that at all levels of government, the financial losses caused by immigration amounted to $42.5 billion. However, Fix and Passel in urban research institutes challenge this conclusion. They argue that these studies, in particular, are overestimating the welfare consumed by immigrants and underestimating the economic benefits generated through immigration population. According to their research, immigration contributed $50 billion in revenue, which is more than the estimated net loss of $42.5 billion from
An important implication is that obtaining a college degree matters in terms of eventual financial independence. Mitchell & Syed (2015) noted that regardless of other markers of adulthood, college graduates earned twice as much as those with no or some college work by their 30’s. College graduates were more likely to work fewer hours during their high school years. Working more hours during high school could limit how much career exploration an individual is able to do, which in turn affects the type of education and career he or she pursues. Likewise, those with less college education had children earlier and had more children than those with more education by their 30’s.
White Americans have about ten times more net worth than African Americans. Redlining and generational wealth lead us to this inequality. The following items will be covered in this essay ,such as redlining, generational wealth, and inequality to explain why white Americans have more net worth than black Americans. Redlining is the main cause of inequality today because it only gave money to the white population. Well then what is redlining?
In 2014, “households headed by blacks was $43,300, and for whites it was $71,300” (“Inequality”). These kind of statistics show the unfair income rates of African Americans, and that does not just go for uneducated black people with a low income job. Among adults with a bachelor's degree, black households earned $82,300, compared with white households earning $106,600, a significantly higher amount for the same degree of education (“Inequality”). Along with the discrimination in income, “many blacks also report feeling like others have questioned their intelligence. Some 45% say that in the past 12 months people have treated them as if they were not smart because of their race or ethnicity” (“Inequality”).
In his article “Elitist Arrogance,” Walter Williams discusses the effects that setting the minimum wage at fifteen dollars an hour would have on African American and low-skill workers. He states that during the 40s and 50s, more African American teens were active in the labor market and employed than white teens. Today, however, more white teens are employed and active in the labor market than black teens, and Walter believes that this is because higher minimum wages have caused companies to discriminate against low-skill workers, which is largely represented by African American teens. Minimum wage is a good policy that the Department of Labor has every right to enforce in every state. Setting a minimum wage attempts to assure that citizens will not be totally taken advantage of in the workforce.
People will earn more money. It's no secret that college Graduates earn higher salaries than non-Graduates, and this increased likelihood of employment in better paying jobs, college Graduates are less likely to live in poverty (Hickey). A bachelor’s degree graduate earns $17,500 more per year than a high school graduate and $15,500 more than a student with any college or a two-year degree. The wage gap between college and high school graduates’ salaries is growing from previous generations. Despite the recent recession, college graduates are more likely to be employed than their less educated peers.
To become stronger, we must work together, which is difficult to do when racism is in the way. We must learn to work together no matter what our differences are. It http://www.huffingtonpost.com/ stated that “White Americans held more than 88 percent of the country’s wealth in 2010, according to a Demos analysis of Federal Reserve data, though they made up 64 percent of the population. Black Americans held 2.7 percent of the country’s wealth, though they made up 13 percent of the population.” Huffington Post also stated that, “A 10 percentage-point increase in the share of nonwhite students in a school is associated with a $75 decrease in per student spending,” a 2012 analysis of Department Education data by The Center For American Progress found.” Yet another statistic found on Huffington Post stated “White Americans use drugs more than black Americans, but black people are arrested for drug possession more than three times as often as whites.” These statistics show that inequality between races is still present and
Income inequality is an ongoing issue in the world and race plays a major factor with this discrimination. The racial wage gap between black and white women has grown substantially since the 1980s (Pettit and Ewert 2009). Racial and ethnic wage gaps are significantly larger for men than for women. Based on the 1981 CPS date, black-white earnings are 0.67 for men vs. 0.97 for women, while Hispanic-white earnings are 0.72 for men and 0.90 for women (Bayard, Hellerstein, Neumark, and Troske 1999). I am going to explain two factors that contribute to income inequality, race and ethnicity, and gender.
The impact of Black entrepreneurship on the wealth disparities that exist between African Americans and White Americans, and examine ways that we can narrow the racial wealth gap. This report uses IRS Department of Statistics of Income Tax Stats to calculate figures based on the Personal Wealth of Top Wealth holders with Net Worth of $1 Million or More in 2001 by state, to test the relationship between wealth and average income. When using the Empirical Limit Profit Model of Wealth, the findings concluded that there is a significant relationship between wealth and income. Therefore, African American entrepreneurs have higher levels of income which builds higher wealth accumulation in comparison to the working class, which is consistent with
In Source C it states, “Among millennials ages 25 to 32, median annual earnings for full-time working college-degree holders are $17,500 greater than for those with high school diplomas only. That gap steadily widened for each successive generation in the latter half of the 20th century.”. This shows that people who went to college and got an education earn a lot more money than those who only have a high school diploma. When people are focused on their education and go to college they will be more successful, but focusing on college as a “country club” won’t get people successful. Continuously, in Source D it states, “High school graduates earn about 62% of what those with four-year degrees earn, according to a Pew Research Center study.
Since the end of the Civil War, whites have economically oppressed blacks through “Government programs that gave white families a leg us…either exclud[ing] or shortchang[ing] African Americans” (Starkman 32). While conventional wisdom suggests that peoples’ wealth should be based on their income, Starkman suggests otherwise. Incomes fluctuate, while assets, which are a more net yield of wealth from even past generations, stay relatively stable. When comparing assets instead of income as wealth, there is a jarring disparity; whites have a $236,000 advantage over blacks, even when adjusted for income levels, and still growing. In essence, assets are the key to wealth in America, as the Shapiro study at the University of Michigan found.
Student loans is the second highest source of debt of $2.1 trillion dollars in the U.S. economy right now. This student loan debt is not only affecting the entire economy as a whole. In America, people believe that earning at Bachelor’s degree is the key to success in order to be financially secure be set in life. However at the same time, the cost of tuition has skyrocketed, and the borrowing of loans rise with it. The rising of student loan and debt will reduce consumption, lower investing, lower the rate of home ownership, and overall make it difficult to sustain financial stability.