What is income inequality? It is the study of the percentage of discrimination of a group and/or section of people based on their origin. First, statistics show that a person's average income generally depends on several factors. For example, in most industries, the average male worker would accumulate more than a female worker because most men work more than the average woman. In the 1900s, most women's roles were as housewives. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Additionally, income inequality would primarily start to change depending on the overall job type and skill level of an individual worker. Without a higher education level or a certain level, people aged 20 to 30 usually held a bachelor's degree and also obtained employment at university, although depending on their field of study their degree was determined for life. However, it would be difficult for a working person to obtain a stable income with a high school diploma, as it was the starting field for some areas of job requirements. In 2010, the employment rate was around 73%, given that these were people with a high school diploma. associate's degree, then in 2017, increased to about 78% for those with higher levels of education. Having a high level of education does NOT always guarantee an increase in income. In recent years, income inequality has become immense, generally based on individual background. For example, compare the average income of men and women. The average man accumulates more than the average woman; this is because there are a greater number of male workers in certain fields. For comparison, studies show that approximately 95% of jobs are held by men and that most fields of employment tend to be heavy construction, repair mechanics, and computer repair. Most of these jobs would typically be reserved for men, as they would be dangerous jobs aimed at the upper class. In fact, most typical jobs are usually held by male workers. More or less, the best paying jobs for women often revolve around being nurses and doctors, often through the study of health and medical sciences. Following the wage gap between male and female workers. A woman who still had an income would still be lower than the average income of men. For example, a woman who just graduated from college after 10 years will still accumulate less than a man who only completed six. In these circumstances, income inequality can lead to a decrease in the amount of income that can be distributed to a group. of people. Depending on the number of people or an entire family, it can be difficult to generate the maximum amount of income, especially if the family is not entirely employed but has a stable but fixed/shared income. The real major consequences of income inequality are usually the form of distribution of income to an individual. For example, if a family has a family income percentage of around 40,000, then they must accumulate 40,000 to achieve perfect equality. At any point, the family could then start to experience an increase in income from 40,000 to around 55,000, but then they could say their household would be 80,000. This is where the Lorenz curve and the ratioof Gini come into play: as the percentage of households increases, overall income must be maintained at a certain percentage in order to avoid hitting the Lorenz curve. Another major cause of income inequality is poverty, which occurs when an individual or family does not meet the general view of having sufficient funds for daily use. But what can cause poverty and income inequality? In most companies, workers tend to make huge profits by lowering their wages as much as possible, which can lead to foreclosure. For a perfect example, workers tend to stop working part-time at a local fast food restaurant after a while after their salary is reduced. The average salary a cashier can earn is $8-10. On February 22, 2019, 3 Sonic restaurants lost a large number of employees due to a massive reduction in the wage gap limited to around $4. If we refer to the Lorenz curve and the Gini ratio, the cashier should maintain his hourly wage to reach approximately $21,334.25. As wages fall, inequality begins to widen. Wage cuts can also lead to massive forms of poverty, as the income received would not be enough to provide resources for an individual. For example, a factory worker who has a fixed income and a budget of around $20 per week would not be able to purchase products when needed. In the workforce, most employees in some countries in the United States experienced discrimination among blacks. and white people. A stable black household has a growing income of about 42 percent, lower than that of the average white household. In 2000, blacks earned about $1,389 per week, while whites earned about $1,819. It is also very important to know that even though there was no equal pay between blacks and whites, gender discrimination nonetheless caused a huge wage gap between races, even with shared income and/or combined. Women still do not earn the same weekly salary as men. For every dollar a man earns, a woman would earn about 80 cents. Before the Civil Rights Act of 1964, people of color, like black people, could achieve little or no balance because they did not have as many rights as white people. They could not work or live the same way as white people. Immigration also plays a major role in income inequality, the reason being that most of those who were not born in the United States, in most cases, usually try to emigrate to the United States to earn a lot of money. benefits for their lives. However, this can lead to increased liabilities such as overpopulation and low wages for Americans. Over time, immigrants would begin to invest or receive massive social benefits and job opportunities for their daily lives. Jobs for those born in the United States would become poorly paid, increasing the chances of leading to poverty. Studies show that most foreigners, such as Asians and Hispanics, have one of the highest rates of migration to the United States in search of work. However, a company that hires an immigrant could potentially face legal risk, as most immigrants do not have proper identification when seeking employment. Another disadvantage, besides overpopulation and poverty, is that health care is still guaranteed to most immigrants and most would have to be educated to benefit from it. To explainIn more detail, immigrants settling here can be very beneficial to the daily American way of life, but it can also cause problems. One final good point to note is that the longer immigrants stay in the United States, the more a need would be created for things like food stamps and housing services. Before taxes came into play, the United States had most cases of income equality, but mostly became susceptible to inflation because there were cases where the rich took advantage of their savings. During 1977, the average household income from direct taxes fell from 21.4 to about 18.8. Overall, taxes can cause income inequality to decrease, and as direct taxes become more cohesive, this would begin to cause income equality to fall. Some very high incomes without appropriate taxation would lead to an increase in income inequality. To solve this problem, the government should start taxing the income of households with higher income rates and then start financing households at lower rates. Once this process is complete, the Lorenz curve would slowly begin to tighten, reaching the line of perfect equality. If the household income is mobile, then the government will need to get involved in order to obtain the necessary funds for the household move. Finally, wealth may differ depending on individual context. The rich would use and use their market power and invest more and more to gain production. Families who were not wealthy, but had very stable incomes, would not be exposed to the same number of opportunities. Aside from the richest 1% of households, the poorest 99% of households have begun to mitigate a significant decline in their wealth. During the 1990s, family wealth began to increase at a rapid but steady pace. In 1997, the wealth of the poorest 50% of households would increase by 85% due to low resource prices. The main goal of wealth was to calculate the amount that would result in an increase in profits but a decrease for non-profit organizations, such as educational institutions. The reason is that there is a huge wage gap when it comes to educational benefits. Research shows that about 50 to 55 percent of low-income people graduate, but only about 15 percent enter college right afterward. start to play a role in reducing income inequality. This occurs when an individual or group is less healthy than the income they maintain. In the 1960s, the wealthy had sufficient access to Medicare only because they had the funds to pay for it, while those who lacked funds eventually succumbed to health problems. A few years later, the poor, who still lacked adequate health care, would get only about 14 percent of what the rich had. The cause of health inequality was based on the amount of money an individual or family could accumulate. Unfortunately, due to poor management, 30% of Americans would experience death and/or illness because they did not receive the proper care necessary to survive. . Further analysis shows that the rich would mostly survive while the poor might live in poverty due to low wages. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay To summarize and conclude further Income inequality is a,2015.