One example of inequality in the US is black-white income inequality which still exists in the US. The income difference between median households of white and black has increased from $19,000 in 1967 to $27,000 in 2011. The average black household income composed 59% of average white household income in 2011, these percentage was equal to 55% and 63% in 1967 and 2007, respectively (Desilver, 2014). If discrimination because of skin color will be continued they will harm economy in some way because if these people will not have jobs they will increase the proportion of unemployed people in the country. The unemployment rate of black is two times greater than unemployment rate of white (Fields and Weller, 2011).
Inequality of wealth and income is an important and controversial microeconomic issue. The issue has become prevalent in the recent years because the prominence of the issue has gradually increased over time. Social media, urban life and proximity to one another can now see how much other people make or have. According to Wolf 2010 the bottom, 40% of the population has 0.3% of wealth while the top 20% possess 84% of the wealth. Economic efficiency can be attained by determining the desirable level of wealth inequality that will motive people to be more productive.
Social class is difficult to grasp but being able to look at two different theorist’s views, narrows down the outlook of the stratification within societies. Through the exploration of Max Weber, a prominent theorist in the 19th century and another prominent theorist in Karl Marx, we see their varying views on social class within society. It is interesting to see the way these two theorists see society in similar lights but they view the nature of class very differently. This essay will look into an outline of both Weber and Marx’s conceptions and examine the manner of these views of social class in the society. With this knowledge, there will be a conclusion drawn about how there may be similarities but there are differences in their final
• Measuring the Degree of Inequality in Society: The Power Distance Index - The PDI is used to measure the social inequality over states. - The way that each nation deals with inequality is different. - High PDI is showed mostly in of countries Asia, Eastern Europe, Latin, Arab speaking, and Africa. - Low PDI views in German-speaking countries, Israel, Nordic countries, USA, Great Britain, and Netherland. • Power Distance Defined - Power distance reveals the point that the
During the mid-1970 's the Red Scare began to slowly move past us and home life settled; there was a new problem dawning, economic inequality. During the 70 's the income gap widened as lower/middle-class American 's income growth slowed down, while the high-class continued to see marginal gain. According to the Congressional Budget Office, the top 1% of earners have experienced a 200% annual income increase from 1980—2010. During his January 28 'th 2014 State of the Union address, President Obama claimed "America does not stand still - and neither will I, so wherever and whenever I can take steps without legislation to expand opportunity for more American families, that 's what I 'm going to do." Despite the promises, hope, and trust that is created when a President addresses the people, it’s always brought to an end by the realization of perpetuating
There are a lot of drawbacks to those who have low-income such as housing stability and economic development. Even with economic development, working conditions are harder due to Global income. When comparing the Gross Domestic Product, comparisons show the richest nations in the United States are thousands of times more productive than the poor
This factor has not only economic drawbacks but social problems are increasing at the same time (Kennickel, 2003). It leads to crimes and unsafety. Wealth inequality in America is increasing specially after the Great Recession of 2008 (Kenworthy & Smeeding, 2013; Allegretto, 2011). “The wealthiest 1% of U.S. households had net worth that was 225 times greater than the median or typical household’s net worth in 2009” (Allegretto, 2011). John Slater (2015) suggests that top 1% will gain more wealth than bottom 99% in 2016 if the government doesn’t take any measures to prevent it.
For example, during this period, U.S. households became increasingly indebted, as J.D.Wisman stated “the ratio of disposable-personal-income to debt rose from 77% in 1990 to 127% at the end of 2007”(P.923, 2010). The majority of this increase was fuelled by mortgage-related consumption, through which low-income and middle-class households tried to keep up with the expenditure of high-income households something called “keeping up with the Joneses effect” (Thomas Goda, P.26, 2013) , although the former group increased their debt much more than the latter group. “Many low and middle-income consumers reduced their saving and increased debt since income inequality started to soar in the United States in the early 1980s” (Rajan, 2010). This is why income inequality highly contributed to the credit bubble in the U.S in 2007, as arguably was the main trigger
As the years fly by, it seems as if a push towards gender equality grows larger and larger. This can be thanks to the active members of society, but capitalism as well should get a pat on the shoulder. More and more companies attempt to hire female workers so they don’t seem so male oriented. And this effort in fact works. According to Reihan Salam, an author for Forbes, one consequence of the high demand of female labor is “that male wage growth has been relatively restrained since the 1970s just as women’s wages have increased dramatically from a low starting point” (Salam).
The three major dimensions of Horizontal Inequality are, as discussed before, Economic, Social, Political. Economic HI would include inequalities regarding distribution of economic resources and inequalities in terms of income. Another aspect of Economic HI is imbalance of employment opportunities. The social dimension of HI would include various social outcomes such as life expectancy, infant and child mortality, educational attainment and access to various services such as Health services, formal education, water supply, sanitation, housing etc. Political HI can be defined in terms of the group members’ political participation in electoral as well as non-electoral politics.
Today the middle class has an income that is around $41,869 to $125,608. While the expenses continue to rise sharply the salary to support a middle class family has not increased at this rate. The increase of the middle class income from the 1920’s to today is due to the increase in living expenses. During the Great Depression President Herbert Hoover enacted many new laws to aid Americans and help them overcome the difficulties they were encountering. Today the American government must do the same and create new laws focused on the declining middle class.