Income Inequality Paper

Income Inequality Paper
Income inequality is assessed by using "Gini coefficient" (Gini, 1909) and it is one of the commonly
used measurement tools across the globe. The Gini coefficient is normally explained by using
Lorenz curve where the income of individuals are arranged from the lowest income level to the
highest income level (Lorenz, 1905). A Gini coefficient with zero means perfect equality, whistle
one or 100 percent means maximum inequality (Rogerson, 2013) . Based on income inequality
measurement tool; Gini coefficient, Wilkins (2014a) suggests that there was a decline in Gini
coefficient between 1994 –1995 and 1996–1997 by showing an inequality in Australian household
income. On the other hand, between 2003–2004 and 2007–2008, the Gini coefficient increased
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Income Inequality
Income Inequality and Poverty
The U.S. is the land of opportunity, but why will so many not achieve the American Dream? There
is no doubt a difference exists between the rich and the poor. The most common words to describe
social class are the upper, the middle, and the lower class groups of people . U.S. News (Francis)
states 46.2 million people, approximately 15 percent of the U.S. population, currently live below the
poverty line (Francis). Unequal income distribution contributes tremendously to poverty by making
the rich, richer and keeping the poor, poorer. Inequality.org states that Income inequality is the
unequal distribution of a household or individual income across various participants in an economy.
It is the percentage of ... Show more content on Helpwriting.net ...
The cause relates to poverty and the higher unemployment rates making it difficult to find a job and
maintain it. The commonly low pay applied to entry level workers makes it makes it extremely
tough to survive or pursue a higher endeavor. Single parents, minorities, and undocumented
individuals are just a few of those who are at deep disadvantage, product of a low average income .
Many lack the opportunity derived from opening a successful door to better living. Wages, benefits,
and legal documents prohibit them from receiving the support they need. Their desire is huge, but
the reality they live in will only distance them from reaching their dream– the American Dream that
many others take for

Income Inequality
Introduction Inequality is one of the most debated topics in the society and since it is largely visible
in society and it has been described to be the most daunting challenges facing the society currently.
Various examples of inequality have come to the spotlight and have been attributed to a number of
social, economic and political factors. Under the UN Sustainable Development agenda for 2030
various approaches and techniques have been suggested which are inclusive of the development of
policies that are aimed at leveling up instead of leveling down, developing of suitable wage and
salary framework and improving the literacy levels (Friedtl et al, 2015). Developing Policies that
Aim to Level Up not Level Down It is important to understand ... Show more content on
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Income inequality can majorly be attributed to the wage and salaries frameworks that have a big
range between the lowest paid individual and the highest paid individual. The framework advocated
is the one that promotes increase of the minimum of wages and salaries so that it can support the
individuals in living well, some economists have argued that the low earning individuals should be
exempted from paying tax in attempts of increasing their available disposable income and taxing
more the individuals who earn more so as to facilitate effective redistribution of wealth. This can be
further reinforced by the government through the government subsidizing the cost of basic
commodities. However, this framework experiences a lot of objections especially from those
individuals that earn more who argue that it is not fair for them to be taxed more because they have
worked so hard to get to the positions that they are in and so the high income is just but a reward of
their hard work and this has indirectly affected the levels of individuals productivity because of fear
of being taxed more (Friedtl et al,

Income Inequality
The author touches on an important issue that affects the United States, which is income inequality
between different sexes and occupations. The researcher asks an interesting research question that
affects a high population in the United States. There have been several debates on income
inequality, and it is essential to know the contribution of government and state policies to this
problem. The increase in the disparity started in the mid–1970s. It is also important to know the
reason for the inequalities between different states. This makes it easier to identify and change
policies that contribute to income inequality. The research question is situated properly in the
literature. The literature first explains the problem of income inequality, ... Show more content on
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The fixed–effects model represents the quantities observed throughout those years as explanatory
variables. It helps in explaining the variation in income between the different states. The research
also uses factor analysis that combines variables that measure similar fundamental construct. Some
of the variables in the different states include taxes on the poor and wealthy, the spending habits of
the poor, and policies in the labor market and they all measure a similar construct that is income
inequality. The report uses data on income from the Internal Revenue Service that gives state level
estimates making it much easier to find the differences in income between states. Ensuring
redistribution measures that could be tracked annually for twenty–five years ensured consistency in
identifying policy changes within the years and their contribution to income inequality. The
empirical evidence in the literature is sufficient to disapprove or approve the hypotheses. There is
traceable evidence of twenty–five consecutive years that gives reliable information on income in
different states. The data of twenty–five years increases the accuracy of proving or disapproving the
hypotheses. It gives a trend of the operation of states for all those years making it possible to predict
future trends in making policy at state levels. The data also provided nine policy choices states

Income Inequality In America
Kyle Stickler
Susan Farley
English 103
31 August 2015
Equality for all
Income inequality in America has been a major issue for years. We can see the uneven distribution
by comparing one of the world's wealthiest man in Bill Gates to the average person. He has made
over 50 billion dollars in his lifetime. Comparing him to the average person who makes 37 thousand
dollars a year. Although, unemployment rate has decreased in the U.S, the gap between rich and
poor in this country has dramatically increased. There are many contributions to the gap, such as
different education levels among citizens, living conditions, taxes, difference between salaries, and
more. Income inequality in the U.S needs to be addressed. This horrible problem in our country ...
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Carnegie is a millionaire who wants to put an end to income inequality. He believes a person's
fortune should not be passed down because it will ruin their work ethic. He thinks the top one
percent of the economy should share their money. Although, he would never give to an
indiscriminate charity because he believes they are not worthy and lazy. He would give his money
away to high social purposes who need it. To him creating public endowments, culture, and higher
learning was for the best. The only problem I have with the rich giving out money is that they get to
put it where they want. Meaning in other words they are most likely not going to help get rid of
income inequality and most likely share it with people that will later benefit them. No one should
trust the top percent to circulate their money in a way to help the people. Some may inherit the
fortune and not be educated enough to put the money in the right hands. I see where Carnegie is
coming from but in no way is it logical. The answer to ending income inequality shouldn't solely be
given to the

Income Inequality
Over centuries, the economy has been the major thing that has kept the world going receiving help
from the middle class society. However, there has been some downfalls over the years which have
made it difficult to get back up from. An income inequality is income distributed unevenly to the
population; the United States has the most unequal distribution of income and wealth today. In the
documentary Inequality for All by Robert Reich demonstrates in a graph how much an employee
from the top is receiving a 1 percent more than a typical worker during the 1970s. In these recent
years, the United States economy has been suffering with the slow growth being held down by job
creation and labor market. After Donald Trump being elected as president, there has been a
promised made with regulating taxes. Overall, to sustain a strong and vibrant middle class, workers
must join together for the purpose of improving their work pay, investing in education and also to be
able to fix the tax system; these actions will give strength to the communities' voice making a
possible change in the economy.
To begin with, the voice of workers are intended to be heard by politics to try and make a change in
each and one of their lifestyles. Unfortunately, during recent years there has been a downfall in
unions, "Smaller numbers in unionized workers mean less bargaining power, and less bargaining
power results in less wages" (Reich). At the present time, Americans no longer have enough power
to keep

Income Inequality
In "Inequality Has Been Going on Forever... but That Doesn't Mean It's Inevitable" by David
Leonhardt, he responds to the issue of income inequality between the wealthy and the poor. He
starts out with explaining that rising income inequality has been going on for so long that it is
starting to look inevitable. Leonhardt then states that Thomas Piketty had wrote that income
inequality has been a historical norm. Piketty also writes that the inequality has risen all throughout
modern history, with some exceptions including wars and depressions. Leonhardt then begins to
explain that even though something may seem natural or likely, it doesn't mean something is
inevitable. Leonhardt then states that the course of income inequality can be changed. He tells that
along with wars and depressions, education can disrupt income inequality. I agree with David
Leonhardt that income inequality is not an inevitability, and it is something that can be changed.
David Leonhardt agrees with Piketty that income inequality is likely and natural, but denies that it is
an inequality. He believes this because long ago, the rich owned a smaller share, and the income gap
has been rising far less rapidly. He also explains that wars or depressions can disrupt income
inequality. Another way Piketty claims income inequality can be disrupted is through education. I
agree with Leonhardt that income inequality is not inevitable, even though it is likely. I believe this
because there are many things the

Income Inequality
For the past 30 years the "gap" in income received by the rich and the lower class has continuously
continued to increase, showing no signs of decrease anytime soon. This gap has mostly affected the
middle class, which is made up of mostly African Americans and Hispanics, making America less
determined to correct such an issue. Given the circumstances African American's are the focus of
this issue due to the fact they make up majority of the middle class. It is known that modern racism
exist within today's society in various ways, one of which happen to be within the economy. For
decades the economy has had its downfalls, however, it's been facing an issue that it has been hiding
from the rest of the nation. The gap that everyone speaks has ... Show more content on
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According to table two (Reardon and Bischoff p. 25) black, families income segregation grew
rapidly within the 1970–1980's, at a rate that was three times faster than the corresponding growth
of white income segregation (Bischoff and Reardon p.26). On average black income segregation
was about ⅓ SD lower than white income segregation. Figure 4 (Reardon and Bischoff p. 27)
further proves that both blacks who had jobs ranging from working with manufacturing companies,
construction, financial aid, real estate and even managerial and professional jobs earned four times
less than whites who were within the same position. Only two percent of black families who had the
same jobs as whites were earning the same annual income. In addition, to the figure it is shown that
whites who have just high school diplomas earn twice as much as blacks who also have high school
diplomas. This discrimination many workplaces have set has limited blacks from getting jobs and
providing for their families. This is one of the many reasons as of to why many result of criminal
activities in order to support their families. Almost all whites are given that privilege that
opportunity no matter what their situation is, they are helped by society and taken in, neutered,
healthy and then placed back into society. While blacks on the other hand, are expected to figure
things out and

Income Inequality
Melissa Webb
Professor Rick Armstrong
English 12
1/April/2015
Topic: Income Inequality (Essay #1 / 2ndDraft)
The American Dream remains alive and well however due to income inequality it has failed to
become a reality for the overwhelming majority. The fact that all politicians today still agree that
income inequality is a major problem in the United States, shows that there persists an
overwhelming need for better methods than the ones that have been tried in the past. Politicians, in
their quest to win elections, emphasize the failure of our economic system to bridge and close the
gap between the rich and the poor masses. The implantation, by governments, of various economic
theories postulated by the great economic minds ... Show more content on Helpwriting.net ...
Increase productivity will lead to greater profitability for one's company in which workers are
investors. Profits will flow back to workers closing the wealth gap. According to Lawernce Mishel
in their article Even better than a Tax Cut "wage stagnation is a decades–long phenomenon where
hourly wages have straggled behind the economic productivity of most Americans". Wage
stagnation has taken place because the additional profits created by the increased productivity of
workers have been passed on to the shareholders and not to the workers. If workers were
automatically made shareholders as I have suggested above the problem of wage stagnation would
not

The Importance Of Income Inequality
Adrian Balinao
Dr. Tym
ENGL–101–E
Essay #3
November 29, 2017
Income Inequality
Former President Barack Obama has called economic inequality "the defining challenge of our
time." He states, "The combined trends of increased inequality and decreasing mobility posed a
fundamental threat to the American Dream, our way of life, and what we stand for around the
globe." Yet, income inequality is a topic of conversation most Americans avoid. People in the
United States, researchers have found, vastly underestimate the extent of our economic inequality.
Studies show that only 5% of Americans think that inequality is a major problem in need of
attention. Paul Krugman in "Confronting Inequality" explains the significance of income inequality,
its impact on social equality, and why it is such a problem. Income inequality is the extent in which
income is distributed unevenly among a population. It is no secret that there is a separation between
lower, middle, and high–class families, but just how wide have the gaps between the top percenters
and everyone else grown?
Researchers found that the average American believes that the richest fifth own 59% of the wealth
and that the bottom 40% own 9%. But in reality, the top 20% of US households own more than 84%
of the wealth, and the bottom 40% combine for only a mere 0.3%. In the United States, the average
income of the richest 10% is 16 times as large as the poorest 10% in 2014. The difference in
incomes have become so strong that

Inequality Vs Income Inequality
America having redeemed its democracy after the conclusion of the civil wars, it becomes
regrettable that it betrayed that it was going to reveal the same with the concentration of wealth.
However, how much it is inevitable to avoid inequality of income and wealth, the level of wealth
among those at the high ranks of the economic status points a potential threat to equality among all
the citizens of a nation. The issue is not whether income inequality is bad or good, the question of
contention is, and at what point does this inequality start to pose a threat to the equality of
opportunity and above all the democracy of a nation. America had reached that tipping point of
inequality that had never been seen during the Gilded Age of the 19th century. With inequalities as a
result of income levels, it was complicated to correct the dysfunctions of an economy. The office of
the Congressional budget pointed out that between 1979 and 2007, during the beginning of great
recession the income gap after payment of the transfers and federal taxes tripled; there was an
increase in the after tax. While this was happening, the medium household income was continuously
falling.
At the beginning of the 19th century, wealth had become highly concentrated than income. The
modern trend of wealth concentration posed a threat to the pillars of the American society, the
economy, the ideal of equal opportunity and above all the democracy of the United States of
America. With the concentration of wealth, there was the likelihood of consumers having low
purchasing power thus many businesses were likely to lack incentives for hiring workers. The rich
were spending small proportions of their income than the average class and the poor; this led to the
concentration of wealth at the top of the economy. Through this concentration of wealth at the top,
there was hampering of the upward mobility (Mehrotra, 25–61). Generally, low upward mobility is
a correlation of high rates of inequality. With the decline in the middle class and the dropping of the
medium household incomes, there were very remote possibilities of upward mobility. The
relationship between democracy and the then widening inequality was totally over shown in the
United States.

Income Inequality
The growing inequalities in our society and individual's motivation to work can be explained
through different theoretical perspectives. This essay will provide examinations on two theories, the
functionalist perspective of social stratification and Max Weber's perspective of rationalisation and
life chances. In the first section of the paper, the differences and similarities of these theories'
understanding of people's motivation to work are discussed. This will be followed by the
comparison of how the two theories explain the general trend of the rise of income inequality.
Overall, the essay seeks to contend that the functionalist theory fits better in explaining the general
trend of rise of income inequalities as opposed to Weber's theories. ... Show more content on
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Past researches have indicated that at the very top earnings distributions, the highest 0.1%
experienced faster income growth than the next highest 1% and 9% (Piketty & Saez 2003, 2006
cited in Neckerman & Torche 2007, p. 337). According to the functionalist perspective, a person's
high income is measured from the functional importance of their position (Davis & Moore 1945, pp.
246–247), hence the differential in rewards can be associated with the uneven income distributions
of individuals. This perspective approaches this trend of inequalities as necessary for the operation
of society in order to promote participation in jobs of higher functional importance that require
further training of skills. Therefore, the increase in wage growth at the highest earners of society and
uneven distribution of income between jobs can be explained and justified through the functionalist
understanding of the rewards

Income Inequality In The Workplace
Throughout the history of the world, women have been discriminated against in all forms, especially
in the workplace; this includes unequal pay and much more. Even though America is advancing and
changing to provide equality to every individual, there are still many countries in which women are
still looked down upon simply because of their gender. Discrimination against women in the
workplace is not only taking place in America but also many parts of the world. Women who are
well educated and equally trained in their field are paid less than men who are sometimes not even
educated enough or well trained for the same job. There are many studies which show the difference
between the pay gap between men and women; these studies are sometimes done to show the
systemic discrimination that women face in the workforce. One of the main issue with income
inequality between men and women are simply because women are seen as the weaker sex when it
comes to working; because of this, woman earns less money at their jobs than men. The purpose of
this research is to provide insight into the income inequality between women and men. This research
will use many scholarly works to prove my hypothesis on the matter. In a way women being paid
less than men depend on their gender and any change in gender directly affect the way they are
being paid or their income.
In Miller article, she explains the most important reason why there is such a big income gap
between working women and men. One of

Widening Income Inequality
Inequality has increased within the most advanced and emerging markets and developing countries
(EMDCs), a phenomenon that has garnered considerable attention with President Obama calling
widening income inequality the "defining challenge of our time." Irrespective of culture, religion
and ideology, inequality concerns and affects everyone. Inequality can serve as an indication of the
shortage of income mobility and opportunity―a reflection of the perpetual disadvantage for certain
sectors of society. Increasing inequality also has serious implications for macroeconomic stability
and economic growth, it can concentrate political and decision making power in the hands of a few.
This in turn results in the inefficient allocation of human resources, ... Show more content on
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Inequality affects long term growth and cuts short the benefits such growth can bring about through
the multiplier effect. So, the need to reduce inequality is apparent. The more progressive the tax is,
the more effective it can be to reduce inequality. Progressivity could be strengthened by cutting back
on tax expenditures that benefit mostly top–income groups (e.g. tax relief on mortgage interest). In
addition, removing other tax reliefs would increase equity and allow a growth–enhancing cut in
marginal labour income tax rates. It would also decrease tax avoidance instruments available for
high–income earners. Moreover, we have concluded that inheritance tax is deduced to be much
more useful in reducing inequality. Therefore, rising inequality warrants the imposition of higher
income and inheritance taxes on the rich, with more of an emphasis on higher inheritance

Income Inequality Argument
There has been a debate about the income inequality. Some people stand by that the rich are richer
and the poor are poorer. As the evidence of it, the rich have large part of the social resource than
before, so that the poor have less and less part of community resources. On the other hand, the
opponents people argue that the poor are richer. Compared to previous, the society has much more
resources. Even the poor people have less part of resources then before, they actually have more.
The debate has been going on for years, and both side of the argument are justified. The fight will
continue, but both side of the debate believe that income inequality is exist. Most people don't like
the income inequality, and thinks it will hurts economic

Income Inequality In America
Jack Flanagan 12–15–14
Religion 3 Period A
Income Inequality The problem of income inequality is one that is very prevalent in this time in
America. The disparity of wealth in this country is very vast and a growing problem. These
problems of income inequality are taking away peoples aspect human dignity, this is a major moral
issue because everyone is entitled to human dignity and when it is taken away from them that is
moral wrong. Additionally this is an issue in which the Church is very involved in. Additionally
President Obama in his State of the Union Address back in January also made note of the problems
in the nation with regards to income inequality and the minimum wage. The United States Catholic
Conference ... Show more content on Helpwriting.net ...
They believe that all people were created and deserved to be treat as so also. In this the church
believes that all people deserve an equal chance to work and provide a living for not only
themselves but their families as well. According to the USCCB the bottom 50% controls just 4.5%
of the overall wealth in this country and that is not an even distribution of wealth. This means that
those people who are in the bottom 50% do not have the same opportunities as the others because
simply put they do not control nearly close to the same amount of money. Additionally the top 10%
of people's income has increased by over 200% since 1948 while the other 90% has increased by
only 100%. This shows that the top 10%'s wealth has increased by double the amount the rest of the
population has, meaning that the disparity of wealth in the nation is only begun to increase during
the last 66 years. This is one of the problems that the Church has addressed because if people are
living in poverty but still trying to work full time they are not being treated equally and to say that
this is okay is morally

Income Inequalities
You would think that when it comes to carrying your own weight that one would take pride in it and
get it done. Well that is simply not the case all the time. In the world of taxation, the people who are
getting affected the most are the more wealthy people. Most wealthy people carry their own weight
and also pick up the slack of most poor people. For example, taxes pay for government programs
like Food Stamps, WIC, Welfare; just to name a few. Not all poor people can help what their income
looks like and must play the hand they are dealt, but there are many poor people who just wants
things handed to them. Income inequalities are no stranger to the block and have been around for
ages. On one side you have the wealthy people who want their

Income Inequality
In–depth research on inequality highlights the problematic reality that the average American
employee has not seen increases in wage benefits from the U.S.'s productivity gains much like top
income earners have. Rising inequality in the United States has been noted as the growing
divergence between growing productivity and the flattening of average wages since the late 1970s
(Citation). The average worker's compensation only grew by 8% from 1979 to 2009 despite an 80%
increase in productivity (Sylla). Meanwhile, wages for top percent of income earners have been
growing at a disproportionally higher rate than productivity. C.E.O.s from big companies went from
earning about twenty times more than their average employee in 1965, to earning about ... Show
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Specifically, managerial power has used shifting corporate responsibility to its shareholders as a
justification for such undemocratic policies and business tactics. In the 1980s, there were clear
efforts for corporate management to hold priority of shareholder's interests over that of their
employees. Since the 1990s, C.E.O. pay drastically grew to be mostly comprised of capital gains
thus influencing management's own self–interest to be more aligned with that of the shareholders
(Frydman). As a result, corporate management practices were more willing to fire, outsource, and
underpay American workers for the sake of turning a profit (Miniter). Evidently, this shift in values
became reflective of the working class's deteriorating bargaining and political power. Over 30% of
the nation's private–sector workforce was unionized in 1950, today this number has dropped
considerably with the help of corporate managers discouraging unionization (Saving Capitalism, Ch
10–12, 144). In effect, laborers no longer had the bargaining power to demand higher wages or
advocate for policies that protected their incomes (Saving Capitalism, ch 18,

Income Inequality
In Income Inequality: Too Big to Ignore, Robert H. Frank paints a picture to the reader about the
struggles of pier pressure. For example: an upper–classmen chooses to buy a big house and fancy
clothing. This acts as a "frame of reference" to the changes and norms of the society. If he spends
money on something nice, a middle–classmen will then go and decide to do the same thing, and
then a lower–classmen...all the way down the social hierarchy. This is what he calls an "expenditure
cascade." Robert relates this with a person's downfalls, which can be traced due to lower income
inequality. Income inequality basically means that in a given quantity, the dispersion of income is
underlined by the gap between individuals and or households with ... Show more content on
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Is everybody supposed to be rich and wealthy? If so then nobody would be truly happy or rich. On
the one hand, nowadays there is at least opportunity for progression in life. There's something out
there to live and die for for each person. New people are stepping up to the batter's box with a
chance to hit the homerun to win the game. There's such a big amount of room of potential for
everyone to be the next millionaire, you never know who will make it big. On the other hand, there's
a very big tendency for people to get jealous of others for what they have. Whether it's the new hot
item, fancy clothing or whatever, individuals will always have that look of covetousness on their
faces because there will always be something that they must acquire to express to his friends. This
behavior causes many to stumble down the steps of success. Financial loss, divorce, long commute
times can befall a person because of the rapid growth of income inequality. But one mustn't look at
statistical analytics to see the reasons behind the falling outs but rather at what causes do these
people not have higher incomes, marriage and living problems. These persons undoubtedly make
bad decisions in their homes and work place–they may be very rude to clients, don't take their job
seriously, or are unorganized individuals–and therefore may be fired for their behavior and must
take on a reduced income at a measly job because nobody else will accept them. They carry all of
their problems

Income Inequality And Poverty
"Income inequality has no necessary connection with poverty, the lack of material resources for a
decent life, such as adequate food, shelter, and clothing. A society with great income inequality may
have no poor people, and a society with no income inequality may have nothing but poor people" –
Robert Higgs. When people think of income inequality they picture poverty and people not having
basic necessities. However income inequality is not just a connection to the poor. Income inequality
is strongly affected by education attainment, technology, and gender. One of the reasons for income
inequality is education. The more education you have, the higher chance one has to making more
money. Based on information provided by the U.S. Bureau ... Show more content on
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In addition, in Lab #2 titled "Education, Occupation, Race and Wages" the study focuses on
education and wages. The median annual wage for a person with a Bachelor's degree is $24,128
higher than a person with just a high school degree alone. To expand on that statistic, a person who
furthered their career and earned a Master's degree earns a median annual wage of $11,648 more
than a person with just a Bachelor's degree. Education is not the only leading factor to income
inequality –technology plays a key role also. Technology is vastly changing and advancing all
across America and in other countries. However, ever since technology has made up and coming
advancements, it as also been a factor in the income inequality gap. Ultimately, the advancement is
affecting both high and middle income countries. The advancements are replacing manual labor jobs
that pay well. For example, in large factories there are now robots that can assemble the company's
products. The machines and robots can perform the job faster and quicker; however, they are taking
overs people's jobs and forcing them to find lower paying jobs. In the article "Is Technological
Innovation Making Society More Unequal?" The author expresses if robots are to blame for income
inequality. It claims that "the robot named Baxter costs $4.32 per hour versus humans that were
earning $23.32 per hour" (Naudé,

Income Inequality
Over the last several decades, income inequality regarding wealth has grown substantially within the
United States. For example, the income share of just the top one half of the top 1 percent grew from
5.39 percent of the nation's income in 1979 to 13.37 in 2010. The reasons of increased inequality
across the nation can be blamed on numerous factors such as deteriorating institutions like unions,
employment protection regulations, decline in real value of the minimum wage, and globalization
have played some role. However, the major driving force behind the changes in the U.S. wage
structure is advances in technology. Technical change favors more educated workers, replaces tasks
previously performed by the unskilled, and increases the demand ... Show more content on
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Improving technology or technological advances are vital sources to create higher living standards
in any economy. It can be said that technology has produced more positive results than negatives,
and for a country like the United States is expected to experience faster technological progress.
However, inevitably new technological advances will inevitably leave some people behind.
Computerization is not necessary destroying jobs, but rather degrading the quality of jobs and
creating a substantial division of labor force. The demand for highly skilled employees who perform
well in intellectual tasks is strong, but the middle of the labor market, where the routine task–
intensive jobs lie, is sagging. The labor force without the technological training required therefore
concentrate in manual task–intensive jobs – like food services, cleaning and security – which are
numerous but offer low wages, precarious job security and few prospects for upward mobility. This
bifurcation of job opportunities has contributed to the historic rise in income inequality. (Autor,
Dorn) It's is becoming more difficult to overlook the fact that technology is widening the income
gap between the tech–savvy and everyone else. All this changes in the labor force market and
technology are signs that the economy is going through a period of transition, alike to those it's
experienced

Income Inequality
In recent years, a growing gap between the wealthy and the middle class has grown, as the wealth of
the world has increased significantly, yet only a minority of individuals get to enjoy it. Income
inequality has been proven to be detrimental to not only the economy, but to the overall well–being
of a nation as it leads to societal upset and can potentially prompt a decline in progression as a
nation. Over time, income inequality has led to negative results in the United States, as well as many
other nations including Greece. Consequently, the solution to prevent income inequality from
deteriorating a nation and prevent economic upset is to ultimately tax those who are wealthier at a
higher rate and put said money towards education and healthcare ... Show more content on
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politicians to put more emphasis on the power of education and support funding for it. By taxing the
wealthy at a higher, but still fair rate, and putting said money into funding for education and public
schooling, the U.S. will be able to enlighten more people in new fields of work, and this education
will create jobs for those who are typically used to labor demanding work. Public funding in these
programs will ensure education and healthcare to all, no matter how much money they make. Also,
in the case of the current day United States, it is a matter of ensuring that politicians make these
changes at federal levels, because essentially, that is the only way that a difference will be made.
The current U.S. political system is dominated by money and this just goes to show that income
inequality today has increased in ways that threaten economic growth, and even the health of U.S.
democracy (Tyson). If United States politicians fail to acknowledge the rising gap between the rich
and the poor, the inequality will ultimately keep rising, potentially leading the United States into a
recession. By simply ignoring its existence, U.S. leaders and policymakers are essentially allowing
the future of the nation to be jeopardized, with regards to social and economic

Income Inequality
Background of Income Inequality The history of income inequality in the United States has affected
the lives of many citizens. The problem with inequality has evolved over time and has influenced
previous public administration policies in the U.S. The problem can be traced back to the American
economic depressions; the latest being in 2009 in which many households were directly and
indirectly affected. Even though all economic classes were affected, the people which were most
affected was the middle class and the poor who had little or no savings (Saez, 2013). While it is
evident that the top income class has considerably recovered, the middle and low income class has
struggled the most due to the ever rising costs of healthcare and education. This issue has attracted
considerable attention of public administrators before, and has been the subject of several research
publications. According to the report of the Joint Economic Committee Democratic Staff, the
inequality level in terms of income that started almost three decades ago is still on the increase.
According to the report, this is despite a confirmed economic recovery – a fact that points to a more
serious problem which is the skewed wealth distribution in favor of the rich, (Forster, Llena,
Nafilyan, 2014), The problem has been exacerbated by the glaring inequality along the lines of race,
age, origin and gender in accessing opportunities, wealth and sustainable income. In fact, the OECD
report of 2014 notes

Inequality Of Income Inequalities
Executive Compensation. I'm in agreement with Thomas Piketty that the one cause of rising
inequality in the United States "the rise of supersalaries" for top executives (Piketty & Goldhammer,
2014, p. 298). The average American estimates CEO to worker pay ratio at about 30–to–1, which is
more than 4 times what they believe to be ideal. The career review site Glassdoor reported from
2014 data that the average pay ratio of CEO to median worker was 204–to–1 and that at the top of
the list, four CEOs earn more than 1,000 times the salary of their median worker with the very top
pay ratio of 1,951–to–1. In some cases a CEO makes in one–hour what it takes the average
employee six–months to earn. In comparison, the Washington Post reported for the ... Show more
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African American's have been on the bottom end of inequalities since their arrival United States,
although advances have been made African American men still fare badly. For Hispanics high
immigration numbers accounts for the inequality gap among them. The presence of women in the
work place has add little to the issue and the decline of trade unions has negative implications for all
workers. Advances in technology is part of the natural cycle of industry and while some jobs will
initially fall victim to it new skills and training will provide for new careers. Thomas Piketty and
Joseph Stiglitz shows that the overwhelming causes of the current cycle of economic inequalities to
be income and capital inequality that exist because of politics and government policies that benefit
the rich at a cost to the poor and

Income Inequality And The Distribution Of Wealth And Income
Income Inequality
Income inequality is the extent to which income is distributed unevenly in a country, it measures by
what extent is the distribution of income within a country deviating from perfect equality. It is an
important measure to determine the fairness in a country and the social outcome in a country such as
the level of corruption, crime rate and poverty. Countries make use of the Lorenz curve to help show
the graphical representation of the distribution of wealth and income. "Income inequality in Canada
has increased over the past 20 years. Canada reduced inequality in the 1980s, with the Gini
coefficient reaching a low of 0.281 in 1989" ("Income inequality", 2013, Is Canada becoming more
unequal?, para.1). Gini coefficient is a measure of statistical dispersion intended to represent the
income distribution of a nation 's residents, and is the most commonly used measure of inequality.
Income inequality rose in the 1990s, but has remained around 0.32 in the 2000s.
Income inequality is quite important when deciding the level of development of a country. As a
country becomes more developed, the income and wealth distribution of a country is questioned.
Income inequality shows that a country is becoming more developed but brings the issue of the
social issues (for example corruption). Government in Canada over the years have increased
personal income taxes and government transfers (such as social assistance, unemployment
insurance, old age security, and child

The Problem With Income Inequality
We all have different opinions of what the American dream consists of. When the economy was
stable, most dreams consisted of having a great career, a big house with all the luxuries imaginable.
However, having a stable job, and saving for the future is simply what the American dream has
become. Some may argue that the American dream is no longer out there because of the income
inequality I assure to all those looking for the dream, inequality has always been there and we
should not allow anything to stop us from achieving what we want. Like many working Americans,
I never took the time to think about how income inequality affected us and how immense it has
become. The problem with income inequality is its rapid increase, and the lack of effort to close that
gap between the rich and the poor. According to Robert Franks in "Income Inequality: Too Big to
Ignore", income growth has always remained at the top 1 percent for instance, in 1976 it was 8.9
percent and by 2007 it rose to 23.5 percent (581). Low wages and high unemployment rates have
contributed to the income gap. The question is what can the government do to help reduce the
problem? If we think about it, there have always been plenty of obstacles, enabling us to achieve the
American dream but one should never give up hope. Undoing tax cut for the wealthy to reduce
income inequality is a recommendation given by Paul Krugman (595). Undoing tax cuts on the rich
would be very beneficial for low and middle class

Essay about income inequality
Professor Douglas
English 1–A
26 May 2013
Works Cited
Dobelstein, Andrew W. Moral Authority, Ideology, And The Future Of American Social Welfare.
[N.p.]: Westview Press, 1999. eBook Collection (EBSCOhost). Web. 15 May 2013.
Frank, Robert. "Income inequality: Too Big to Ignore". Graff, Gerald, Cathy Birkenstein, and Russel
Durst. "They Say, I Say": The Moves That Matter in Academic Writing : With Readings. New York:
Norton, 2012. 432–447 Print.
Murray, Harry. "Deniable Degradation: The Finger–Imaging Of Welfare Recipients." Sociological
Forum 15.1 (2000): 39. Academic Search Premier. Web. 28 May 2013.
Olsson, Karen. "Up Against WAl–Mart." Graff, Gerald, Cathy Birkenstein, and Russel Durst. "They
Say, I Say": The Moves That ... Show more content on Helpwriting.net ...
Web. 15 May 2013.
Norton, 2012. 432–447 Print.
Olsson, Karen. "Up Against WAl–Mart." Graff, Gerald, Cathy Birkenstein, and Russel Durst. "They
Say, I Say": The Moves That Matter in Academic Writing : With Readings. New York: Norton,
2012. 606–619 Print.
Frank, Robert"TaxTheRich2012.org Save the Middle Class – Home Page." TaxTheRich2012.org
Save the Middle Class. N.p., n.d. Web. 29 May 2013.
Professor Douglas
English 1–A
26 May 2013
Works Cited

Dobelstein, Andrew W. Moral Authority, Ideology, And The Future Of American Social Welfare.
[N.p.]: Westview Press, 1999. eBook Collection (EBSCOhost). Web. 15 May 2013.
Norton, 2012. 432–447 Print.
Olsson, Karen. "Up Against WAl–Mart." Graff, Gerald, Cathy Birkenstein, and Russel Durst.

Income Inequality
Income inequality Name Date Abstract In any given population, there is a difference between what
people within the population earn. The uneven distribution of income in any given population is
income inequality. In order for there to be income, there has to be several sources of income. These
sources of income may be combinational or independent per person receiving the income. Income
may result from wages, rent, bank account interests, salaries or even profits made in business
transactions ( Stiglitz, 2012). In his hypothesis, Karl Marx foresaw income inequality in a
capitalistic as a major problem that would lead to an economic evolution. The main reason he
foresaw an evolution was due to the recurrent nature of income ... Show more content on
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Classification of what causes inequality lies in two different classes in a broader sense, which are;
individual causes, or external conditions leading to income inequality ( Rousseau, 1992). In simpler
wording, the causes of inequality lie within endogenous causes and exogenous conditions.
Endogenous causes of income inequality Endogenous causes are those causes that are unique and
attached to an individual's characteristic. These characteristics lie in the ability of an individual to
produce more than other individuals hence earning more than other individuals in the same market.
These characteristics include better qualifications in carrying out a given job or other uncommon
attributes that make the individual more valuable in the market place. The most common
individualistic abilities sought after in the market include intelligence, charisma, personality and
physical agility. An example of an individualistic attribute in use is intelligence, in the modern
market, IQ tests used in measuring a person's intelligence directly reflects on the earning capability
of that person. A person with a very high intelligence quotient is likely to end up making more
money in the job market as opposed to a person with a poor intelligence quotient. Another
endogenous cause for income inequality is individualistic

Income Inequality In Canada
Most of us Canadians like to think of ourselves as a better version of our American
neighbours.Whether it be health care or ethics in politics .However,with the new trend and of course
a Harper government .We are mimicking our American cousins.This essay will highlight the
problem of inequality and its ability to change the governance of our country.Through facts and
statistics,this essay will argue that income inequality is a serious problem.However,Canada does
have other issues such as inequality faced by women and aboriginal people.Income inequality seems
to the root cause of other issues.The essay will first prove the existence of a growing inequality in
Canada.The basis of the argument will lie in the drastic changes that ... Show more content on
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Whether it is in Canada as a whole or within a city, the top 1 percent enjoy a sought of immunity to
economic slumps.According to CCPA ,over the course of 30 years from 1982 –2010 the richest 1
percent enjoyed an income increase of 71 percent.The richest 1 percent of Canadians made 15 times
more than the average Canadian income(CCPA) . Income inequality as earlier stated bring about
health inequalities within the spectrum of a country's populations. However, such income
inequalities and wealth inequalities are all signs of an existing class inequality. Chrystia Freeland
speaks of the class that makes up one percent of the top one percent i.e. 0.01 percent, the super–rich
or ultra–elites as plutocrats. The amount of wealth concentrated in hands of such a small percentage
is a worrying situation. It is common human nature to try and keep what one has achieved. But with
this much at stake, is it petty to think of the lengths this minority will go to maintain their status
(Freeland). It is to no doubt that that members of this group also influence government policy.Most
political parties need huge financial support in order to sustain their campaigns.With large sums of
wealth that corporations possess,they invest in political party campaigns.The irony lies in the fact
that they are called donations.With financial

Definition Of Income Inequality
In my opinion, one of the most controversial topic in the recent election was Income Inequality. The
real reason people are unable to talk others into believing them when they argue on the Income
Equality is because not everyone knows the correct definition of Income Inequality. Income
inequality means "unequal distribution of household and income in the economy. Income inequality
is also presented as the percentage of income to a percentage of the population" ( "Income
Inequality") which means the difference between the amounts of money each family spend on
themselves. On the other hand, economic inequality is measured among groups in the population or
between countries. (Wikipedia, "Economic inequality") In my opinion, income inequality is a
problem that is faced by every country, but it is not a problem that should be tackled immediately.
"The rich are money–making machines. Today, the top mega wealthy the top 1% earn an average of
$1.3 million a year. It's more than three times as much as the 1980s, when the rich "only" made
$428,000; on average... Meanwhile, the bottom 50% of the American population earned an average
of $16,000 in pre–tax income in 1980. That hasn't changed in over three decades" (Long, Inequality
in America is getting worse); state that the way the United States economy has been it is a home of
many rich people. One of the downsides of living in US that top 1% earning are increasing
dramatically every year, whereas the bottom 50% of the population

Summary Of Income Inequality
In the article where Michael Shermer has his commentary, the skeptical side of income inequality is
discussed. The article is very unique because it is a bunch of critics that respond to Michael
Shermer's claim "that the U.S. is still the land of equal opportunity." Many scholars criticize
Shermer's skepticism that the income inequality is not as large as people perceive it to be in the
United States. In one case, Shermer responds to a critic and he highlights how the rich and poor are
not that far apart, emphasizing how many economists believe that poverty can be reduced to 0% by
2100, some believing even by 2050. Shermer concludes his response to the critic by signing off
saying that the Bill and Melinda Gates Foundation predicted poverty ... Show more content on
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The significance of income inequality has a major effect on the wellbeing of the social and
economic makeup of the United States. It is not just an impulse, but a civic duty for every citizen of
the country to partake in enacting their opinion. As Jean–Jacques Rousseau, the renowned French
philosopher whose enlightened thinking influenced many of the Founding Fathers of the United
States put it, "The very right to vote imposes on me the duty to instruct myself in public affair,
however little influence my voice may have in them." The uniqueness of the extraordinary
government of the United States resides in the fact that its citizens partake in having an impact that
best suits their interests. After considering the facts and numerous perspectives on whether a large
income inequality distribution is positive or negative, you think back on your construction
experience. Was what you witnessed that one day at your construction job in the nearby building an
actual fact or was what you witnessed a hallucination of an oasis in your mind from the deprivation
of

Income Inequality
Inequality is not favorable in society. There is inequality in many aspects of our society, such as
race, and gender. The main inequality we look at is income inequality in the United States. The one
percent of the population control a vast majority of the United States currency. The Gini coefficient
has been increasing ever since the Industrial Revolution, a period where education, manufacturing,
and economics has shown growth. However, income inequality has increased in the Industrial
Revolution. There are many events, and causes that have led to the rise of income equality in the
United States.
According to Hernaes (2017), technology in the United States has been growing. With the growth of
technology, more "blue–collar" jobs are being replaced. Inequality is increasing because the jobs
being replaced are lower wage jobs. The reason for inequality is that those in the lower class, and
even the middle class are losing their jobs. Those in the upper class mostly retain their jobs because
their labor requires more skilled labor. The income gap increases because the wealthy can allocate
their spendings on other resources, or cheaper resources that will replace labor. The loss of these
jobs would cause the poor to become poorer, and the rich become richer. The supply of labor
demanded would decrease, resulting in fewer workers. The growth of technology began as a "slow
train since the 1980s." Technology has been growing "exponential[ly]" ever since (Jones, 1998).
Jobs are

The Ambiguity Of Income Inequality
The Ambiguity of Income Inequality Pundits say that income inequality has been one of the greatest
downturns of our country's growth and development, however a puzzle exists where economics and
politics meet that does not make the solution to income inequality easy to find. Political leaders,
economists, and bankers all agree that policies have appealed more to the interests of the governing
class than those of the ordinary people. The comments surrounding this topic mostly stem from the
strong shift of wealth distribution over the last few decades. Figures from the Economic Policy
Institute demonstrate that the share of income accumulating by the top 1 percent of the United States
increased from 9 percent in 1978 to 26 percent in 2011. ... Show more content on Helpwriting.net ...
The closer to 1 a country is the more unevenly the income is distributed in that country. According
to the CIA's public database, the Gini coefficient of the U.S. was .40 in 1997. This number was not
too bad compared to Brazil's .59 at the time (the world's highest). By way of contrast, a decade later
Brazil experienced high economic growth and managed to cut its Gini coefficient by nearly a tenth
while the U.S. increased to .45 during the 2007 year. The trend continued to rise with the U.S.
reaching new heights of .48 in 2014 according to the U.S. Census Bureau. However, the Gini is only
a snapshot of a single aspect of an economy. like any measuring index the Gini coefficient has its
flaws. Absolute and relative levels of inequality are tough to measure, which is why income
inequality is a convoluted topic. For instance, a hypothetical country with three people of yearly
incomes of $650, $1500 and $10000 would be counted as having the same level of inequality with a
three person country with incomes of $65,000, $150,000 and $1,000,000. The oversimplification of
measuring income inequality is one of the biggest drawbacks of the Gini coefficient. Numbers can
create a hyperbolic perception. My dollar may stretch further in mainland China in terms of
purchasing power but that alone is not indicative of a better economy. While I may be able to rent a
decent hostel for a weekend stay in Beijing, catch a bus to the

Income Inequalities In America
In the United States, income inequality is obvious and widespread. Presidential candidates realize
income inequality will be a major point of any presidential campaign. The major civil rights issue of
today is income inequality. Such a large misdistribution of wealth has likened modern economics to
slavery. Lower–income workers are forced to work longer hours at a stagnant wage to maintain
consumption. On the other hand, to say that the super–rich are beyond fairly compensated is an
understatement. The top 10 percent of wage earners received 48.2 percent of total earnings in 2012.
The super–rich make the rules of the game (laws) favor the rich. Those with large wealth control the
decisions that affect employment, wages, and benefits through ... Show more content on
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Advances in technology has resulted in the best competitors being overly compensated in
comparison to their competition. Financial markets are more efficient than ever with the help of
advanced computing technology. Capital flows unapologetically from the hands of the semi–
successful to the very successful. The rapid pace of progress in information technology has
increased the demand for the highly skilled and educated. This is due to the complexity of
information technology jobs. Technology continues to replace workers. Low–skilled job
opportunities such as cashiers are being replaced by self–check–outs and bank tellers are being
replaced by ATMs. Other jobs that required multiple humans now require a few machines and a
single person to maintain them. As a result, income distribution favored the highly educated. Due to
rising tuition costs, only families that could afford to send their children to college did so. High pay
leads affordable college for kids, which leads to high pay. This cycle likely exacerbates the income
inequality problem, as it stretches privilege among

The Inequality Of Income Inequality
Income Inequality Income inequality has been a major concern around the world, and it mainly links
to how economic metrics are distributed among individuals in a country. Economists generally
categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed
in their studies that inequality has drawbacks that lead to social problems. This is because income
inequality and wealth concentration can hinder or delay long term growth. In 2011, International
Monetary Fund economists showed that less income inequality increased the duration of countries'
economic growth spells more than free trade, low government corruption, foreign investment or low
foreign debt (Berg and Ostry, 2011). This essay will be structured as follow: 1– Theoretical
Analysis: showing reasons that cause income inequality. 2– Empirical evidence. 3– Possible policies
to solve the inequality problems. 4– Conclusion. 1. Theoretical Analysis An important factor in the
creation of inequality is variation in individuals' access to education (Becker, et. Al, 2007).
According to Bosworth et. Al, (1999) education in a field that requires or demand a high number of
workers, creates high wages for those with advance education. As a result, those who are unable to
afford good quality education or choose not to participate in schools or colleges, generally receive
much lower wages and thus it lowers aggregate savings and investment. In particular, the increase in
family income and wealth

Income Inequality In The United States
What is Income Inequality? Well "Income Inequality is the unequal distribution" of family or
individual wage over the different individuals in an economy. Income inequality is often showen up
"as the percentage of income to a percentage of population" (Staff.) Income inequality creates and
impacts the U.S. in different aspects, whether it is distinguished by "region, gender, education and
social status" (Staff), as well as there are certain causes and potential solutions to resolve the
problems that Income Inequality creates. What are the results (the impacts) of Income Inequality in
the U.S.? Some of the impacts that Income Inequality has created in the U.S., as well as in other
societies that have and are impacted by Income Inequality ... Show more content on Helpwriting.net
...
A potential solution that could perhaps help to reduce poverty and inequality could be to increase
the minimum wage as well as to raising the overtime salary and index it to inflation, maintain and
provide safety net programs such as SNAP, and other programs, create more jobs, provide Medicaid
as well as making sure that people can afford health coverage, making sure people/ young teens with
children can afford and access a child care, helping low income individuals better their education
and provide "fully fund Pell Grants" (10 Solutions to Fight Economy Inequality), having the
government spend less money on prisons and instead invest the money into more schools, programs,
etc. There are many more potential solutions and things that could be done to either minimize, better
or maybe even get rid of Income Inequality, it's all just up to whoever is willing to make a change
and then people will be able to start having and receive a much better

Income Inequality Essay
Without doubts, income inequality influence on wellbeing of individuals and standards of living.
The problem of economic inequality has been the spotlight for long decades. It is believed that study
of income inequality is very important because it may significantly affect on human's welfare but
also at some degree it can touch economic issues. To begin with, this essay will explain the meaning
of income inequality in society. After that, different ways of measurement, such as Lorenz curve and
Gini coefficient, will be pointed out in this project. Moreover, the statistics of income inequality in
the developed country, as UK, was included. In the second part of this coursework, the possible
economic consequences of an increase in income inequality ... Show more content on
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In other words, it refers to a gap between rich and everyone else. The lead economist Branko
Milanovic stated, that income inequality has risen over the last 25 years instead of declining as it
expected. (Milanovic, Branko, 2005). Income inequality can be measured in various ways: using
Lorenz curve and by identifying Gini coefficient. First of all, the Lorenz curve shows "the
relationship between the cumulative percentage of households and the cumulative percentage of
income". This type of measurement gives an opportunity to imply how income is distributed in the
economy. Lorenz curve is plotted, as a linear curve and all the points is the 45–degree line with
perfect equality. The more curve is bowed, the greater income inequality exists in the country.
(Mankiw, Taylor, 2014). Another way of measurement is Gini coefficient. It can be defined as the
measure of the degree of income inequality within the country. It is a number between 0 and 1.
Perfect equality exists when a Gini coefficient is zero. It means that every person earns the same
income. A coefficient of one represents perfect inequality. In this instance, single individual has all
the wealth while others have zero. The Gini coefficient is used to illustrate the ratio of the area
between the Lorenz curve and perfect income inequality curve. (Mankiw, 2014). Due to Gini
coefficient, people have an ability to compare the income distribution of a nation's

The Importance Of Income Inequality
Nelson Mandela once said, "We must work together to ensure the equitable distribution of wealth,
opportunity, and power in our society," (Inequality.org). People must become aware of income
inequality to promote change, and ultimately have a more equitable society. This inequality relates
to other injustices in multiple ways, which influences people in their everyday lives. The U.S. has
the highest income inequality out of any major country; the gap between the most and least wealthy
being the one of the largest since the 1920s. Starting to bring consciousness to social inequities,
such as income inequality, and raising awareness at a local level can become global and change the
world because it can adjust minimum wage, wealth gaps, and income tax.
One impact which may come from the awareness of income inequality is an increase in the
minimum wage. If income inequality is recognized more, people will notice the gap between the
lower and upper income earners, and may realize how an increase in the minimum wage could
balance out the income. The top one percent's incomes increased by over 256% between 1979 and
2007, which went from $269,438 to $690,232; the bottom ninety percent's incomes increased very
little, only 21%, between 1979 and 2015, going from $28,559 to $34,481. The U.S. wages have
developed less since 1979, and the average and lowest–wage workers have seen little to no growth
in their weekly wages. In addition, the bottom ten percent's average weekly wages have

Inequality And Inequality Of Income Distribution
Inequality of Income Distribution in the United States Today, the average income of the richest 10%
is 14 times that of the poorest 10% in the United States. Famous economist Milton Friedman argues
that this inequality gap would eventually spur people to work harder and boost productivity. Others,
who are not that optimistic, argue that the income inequality leads to a growing level of inequality
of opportunity. For that reason, six in 10 Americans now say that only a few people at the top have
an opportunity to advance. Looking at both of the perspectives, we see that different people's
attitudes towards fairness and equality are different. However, it still does not change the fact that
income inequality is not at the desired range to have positive consequences, which makes it a huge
problem. A recent study points out that different economic systems function best with different
levels of inequality and under current circumstances, the inequality range that will lead to positive
consequences for the U.S. economy is between the Gini coefficients of 0.25 and 0.35. This is an
efficient range, because it addresses notions of fairness that have been supported by each side.
Throughout the history, major events and technological shifts have been the greatest drivers of
income inequality. During the times of wars and disasters, people demanded less inequality to be
able to support themselves. On the other hand, use of fossil fuels further expanded the inequality
gap. Today, these

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