Although the income distribution pattern in the United States is very different from that of a third world country -- where a small number of families may be very wealthy while a majority of families are very poor -- the change in income distribution is, nonetheless, disturbing. The poor in our society are not benefiting from the increased wealth in the country. The income gap between low-income families and high-income families is widened. At the same time, the share of households in the mid-income range has fallen to less than half. In 18 states high-income families got richer while the poor got poorer. In 31 states the incomes of high-income families grew faster than the incomes of low-income families (Bernstein, McNichol, Mishel and Zahradnik).
estic economy, from manufacturing to service jobs is a main reason for the growth of income disparities in the United States.
The increased incorporation of the American economy into the global markets through trade, immigration and investment is another major cause of income inequality in United States.
Increased U.S. imports have contributed to the decline in manufacturing, the sector that helped to restrain earnings inequalities by paying higher-than-average wages. The import surplus into the U.S. is significantly composed of products made by low-skilled and modestly skilled labor in Asia and Latin America, depressing the relative wages of U.S. workers at the bottom of the skills distribution.
Immigration contributed to rising income inequality in United States as the ma
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