Los Angeles is just one of many American cities using a rise in the minimum wage to try to address poverty and inequality. State and local governments are acting where the federal government has not. Just over half of American states have legal minimum wage rates above the federal minimum, which has stood at $7.25 an hour since 2009 (The Data Team, 2015). The big question with minimum wage is what should it be raised to?
When you become in the top two percent you stay there. The people at the very bottom of the wealth spectrum, which will make-up at least half of the United States population, will share ten to fifteen percent of the total wealth. Let me repeat that, ten to fifteen percent of the total wealth of the United States is split up in-between fifty percent of the United States population. People on average don’t realize what little money they have. There are people mistakenly thought of as wealthy, but don’t even come close to comparing to those who are actually in the highest class of
While describing the World Food Bank, he mentions that between 1960 and 1970 the US alone spent $7.9 billion through taxes to help other countries have food. He later mentions the speed of the poor population multiplying versus the wealthy. Noticing that the rich only increase by 0.8% every year and the poor increase by 3.3% every year, can create a concern. Hardin says that “the doubling time for this aggregate population is twenty-one years, compared to eighty-seven years for the US” (Hardin 735). This shows that the poor population would have doubled four times before the US doubled once.
Now that the positive effects have been discussed there is still an entirely different set of outcomes that have to be looked at and considered. How could this potentially hurt the economy? What types of effects will this have on small businesses and their employees? What do these changes look like for individual families making minimum wage and individual middle class families? It is clear that there is a universal goal to better America, reduce poverty, and maximize social equality.
A prominent social issue that is occurring in Canada today that is creating a massive divide among Canadians is the rich versus the poor. Canada has become a place where economic inequality has created a huge divide between the rich and the poor creating disparity in the distribution of wealth and income. For example, the top ten per cent of Canadian own almost half of all the assets in the county. This gap between the rich and poor continues to increase annually each year. It has come to the point where only top ten percent of Canadians see their wealth increase while the bottom ninety percent of the population wealth decreases each year.
This creates problems because it adds to the eminence amount of tax dollars spent every year. In the article “The high price of incarceration in America” by Aimee shows that the average American taxpayer spends about $260 a year that is almost 80 billion dollars a year for incarceration (1). There have been many voters who have been trying to reduce the amount of mass incarcerations that have been going on since the 1980’s. The majority of prisoners who were released between 2014-2015 returned to crime but the rate that they were committing the crime and returning was dropped at an astonishing degree. In the article “Prosecutors Fight to Plan to Lower Drug Sentencing “ by Sari, Horwitz (1) shows how government officials are trying to cut back on the amount of long term sentencing for first time offenders.
Mills making this statement in 1956 shows just how long the United States has had to change its economy and society. President Obama’s chairman of Council of Economic Advisers (Professor Alan Krueger) “Has shown how the size of the American middle class (households with annual incomes within 50 percent of the midpoint of the income distribution) has been heading backwards from a peak of more than a half in the late 1970s to 40 percent now”. This decrease makes the American Dream look more like a myth, than a possibility for the American citizens living under the poverty
Also the Statistical Institute of Jamaica (2012), published in a survey that based on living conditions more than 500,000 Jamaicans or one out of every five, live below the poverty line. (W. Campbell, 2015). According to the World Bank, in 2011, 17% of the people in the developing world lived on or below a minimal amount of US$1.25 a day. This means that 1.4 billion people or 21% of the world 's population live in extreme poverty.
This is just the official statistics and the actual remittances that take place through both official and unofficial channels are much higher than the official remittances. Remittances through informal channels could add at least 590 % to the globally recorded flows ( World Bank). There is growing evidence that there exists a link between remittances sent to home countries by migrants and child labor. According to the United Nations Population Division’s estimation, in 2010 3 about 214 million people, or roughly 3.1 percent of the world’s population, lived outside their country of birth of citizenship. Neoclassical theory states that people migrate because of poor governance and limited job opportunity in their country and for the search of better job opportunities.
Illegal immigrants are a major part of the US labor force and have been an important source of low-skilled labor supply to the US economy for many decades. The Pew Hispanic Center estimates that the number of unauthorized immigrants in the US labor force was 8.3 million in 2008, up from 6.3 million in 2003 but down slightly from the 2007 peak of 8.5 million. And there are currently 11.9 million unauthorized immigrants living in the United States, with an average of 500,000 new entrants arriving annually over the last decade. (Passel and Cohn, A Portrait of Unauthorized Immigrants in the United States, 2009).
Many call a solution to this socialism but without a problem there would be no need for a solution. Tax cuts have enables the richest people to keep almost 99% of their annual income. This has weakened our social security and created an income gap while they pay for almost 50% of the tax revenues in the United States. They have not paid their fair share is almost twenty years. Showing a fundamental problem.
Reasons to Raise the Minimum Wage According to John Schmitt while the productivity of the average American worker increased about 85 percent and the inflation-adjusted wage for the median worker rose only 6 percent the minimum wage fell 21 percent between 1979 and 2012. His article titled Minimum Wage: Catching up to Productivity was seen in Democracy a Journal of Ideas NO.29 in Summer of 2013. John Schmitt points out that even though the country got richer, middle class saw little gain and bottom workers actually fell behind. Cap. Action with Cap.
Inequality, by definition is the difference in size, degree, circumstances and lack of one. Income and wealth inequality is currently a major phenomenon affecting the lives of many, including Australians. We aussies love to relish on our beliefs, specifically by perceiving our nation as egalitarian. We’ve deemed our country as an income and wealth friendly country, in which everyone receives suitable amounts of income/wealth depending on their occupations. However, all of these remarks are not necessarily correct and in this feature article I will aim to identify, illuminate and discover the current issues of inequality in income and wealth within Australia.
Socioeconomic Inequality Poverty is becoming increasingly more prevalent due to the growing divide between the upper and lower classes in the United States. Because of the divide, economic burdens are developing and becoming a tag to social statuses. Lower social classes are undeveloped in comparison to the financially stable classes. The widening inequality between social classes in America is damaging the social and financial aspects of the nation, leading to an increase in poverty. Education is harder to obtain in classes that are economically unstable.