Economic
As long as the capitalist economy dominates throughout the world, the debate on socioeconomic inequality will always be a heated one. Some economist debate that organized labor and the greed of corporations, especially CEO’s lead to a large inequality in America. Palo Alto, California is a good example where a strict contrast in socioeconomic conditions exists. On the other side of the debate are other economists, who say that Americans are wealthier now than they have ever been before and we will continue to get wealthier as a whole. Five points are used to further their case: progress of key economic sectors, progress of health—leading to increase in life span, shift of wealth to human capital, gains in women’s rights, and increase in more hours devoted to non-employment activities such as leisure and family activities. Some people believe that stratification has beneficial consequences. Of course, these people are on the higher end of the stratification hierarchy. They believe that the harder one works the more they will achieve, thus promoting production in society. However, individuals at the lower end of the stratification system disagree with that. Their social status prevents them from achieving their best
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. The change of nature of the domestic economy, from manufacturing to service jobs is a main reason for the growth of income disparities in the United States. Technological change is the main cause of domestic economy change. The new information technologies tilt the earnings distribution by rewarding skilled, highly educated labor while reducing the demand (and therefore, the wages) for the products of the uneducated and unskilled workers. As machines replace workers, consumers are buying relatively fewer goods and more services. California is one of the nine states where the average income of the richest fifth of families was more than eleven times as great as the average income of the bottom fifth of families, and California is also ranked as the second best performing state in the new economy among 50 states. In New York, the financial sector has had increased profits and income without much increased employment. Stock trading has been taken over by computers, so additional employment is not
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Approximate Word count = 1152
Approximate Pages = 5 (250 words per page double spaced)
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