Income Inequality
Income inequality: Causes and Trends The distribution of wealth is extremely unequal in America and the whole world. This paper documents the growing inequality, and examines three reasons for its increase. The income growth for top earners is faster than income growth for the poor. This accelerated income growth for top earners would increase the income gap between top earners and the poor. In addition, income inequality between the poor and top earners in the US is becoming greater than in other countries. There are three reasons for this increasing inequality. First, top earners usually have more education than the poor. Making college more affordable leads to higher income inequality. Wage and income inequality is rising among the college-educated.
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The within countries income inequality is a small part of the world income inequality. If the Africa still not starts growing in the future and countries like China and India still develop fast, income inequality between counties, however, will become greater. World income inequality only can be reducing through Africa starts growing in the …show more content…
Education is the biggest factor that causes income inequality. Top earners most get more education than the poor. Making college affordable also could cause higher income inequality because more high-ability workers choose to leave uneducated pool and lower the unskilled workers’ wages. More than half of Americans have taken some college, income inequality is increased between high quality educated workers and low quality workers. More students from low-income family might not consider attending a college.
Furthermore, taxation on the top earners is decreased recent years, so income inequality could be greater through this way. Because of decreasing taxation on the top earners, they might consider not avoiding tax but their total income can remain more. Income gap between top earners and the poor would become greater.
In addition, globalization makes income inequality greater. Countries like America that are intensive on the highly skilled workers will export more products from highly skilled labor. This will leave highly skilled labor in America better off but the lower skilled workers worse. Meanwhile, more highly skilled workers consider immigrating to the United States for highly skilled labor. World income inequality only can be reducing through Africa starts growing in the
The within countries income inequality is a small part of the world income inequality. If the Africa still not starts growing in the future and countries like China and India still develop fast, income inequality between counties, however, will become greater. World income inequality only can be reducing through Africa starts growing in the …show more content…
Education is the biggest factor that causes income inequality. Top earners most get more education than the poor. Making college affordable also could cause higher income inequality because more high-ability workers choose to leave uneducated pool and lower the unskilled workers’ wages. More than half of Americans have taken some college, income inequality is increased between high quality educated workers and low quality workers. More students from low-income family might not consider attending a college.
Furthermore, taxation on the top earners is decreased recent years, so income inequality could be greater through this way. Because of decreasing taxation on the top earners, they might consider not avoiding tax but their total income can remain more. Income gap between top earners and the poor would become greater.
In addition, globalization makes income inequality greater. Countries like America that are intensive on the highly skilled workers will export more products from highly skilled labor. This will leave highly skilled labor in America better off but the lower skilled workers worse. Meanwhile, more highly skilled workers consider immigrating to the United States for highly skilled labor. World income inequality only can be reducing through Africa starts growing in the