How to write an income inequality essay?
The topic of the essay is a topic that, for the first time, arose in the scholarly sphere. And it is not surprising. After all, the cycle of capitalism in the United States is legendary. The historic American Dream is the basis for the formation of a personality in the most diverse areas – in business, social life and education. This phenomenon exists inside the framework of the American Dream, which makes it possible to talk about the changes that have occurred in it in the course of the last 100 years.
Let’s consider the history of this problem in more detail. The period of the first urban industrial revolution in the United States is called the “Decade of Prosperity” in the literature. The quality of industrial enterprise has undergone a significant transformation in the course of the last 40 years. The forces of production have been transformed, and the opportunities of economic growth have increased. In the process of economic development, the character of many aspects of the population has changed. The result of this change is the transformation of the individual and the mass consciousness of the worker.
In the process of the industrial revolution, the population was divided into two main categories: the industrial and agrarian. The latter group included 45 million Americans and was formed from the mass of the population (1.5 million) in the process of industrialization. The industrial population was fairly high at the beginning of the 20th century (about 3.5 million). And the highest indicator was the absolute growth in employment rates during the period under consideration (7.5% of people attained the top of the labor force).
The percentage of people employed in industry was around 3.5 times higher than the number agricultural workers. Non-agricultural industries gave 3.4 times more job positions than agricultural ones. Because of all these changes, the wage of industrial employees was almost equal with the incomes of agricultural workers.
The dynamics of economic growth was also somewhat more gradual, although, in comparison with the image of the economy as a “free gift” which explains income inequality. In the 1960-1970s, the real wages declined by almost 20% for the average family, but continued to grow. In 1977, the growth stopped and even slight decrease occurred.
The trends of economic inequality in the 1980s were weaker than in the previous decades. But the wedge between the middle class and the lower class was widened considerably, the gap in wages between the two groups increased. The earnings of the middle class were virtually equal with the incomes of the lowest class.
The lower (or poor) class included 20 million Americans, and the average – 70 million. These differences in income and position were preserved for several decades.
As a result, from 6 to 12 million people were added to the labor force of the middle class during these years. And the number of they was not only gradually increased, but also continuously gained strength.
The process of social mobility has decreased. The question of whether the United States is ready to transform the world landscape and improve the quality of education, health, and social life on the basis of universal, mostly free access to the social service system.
There is a challenge in the sphere of social and economic relations: the middle class, having consolidated its financial position in the 1930s and especially in a number of ways, including the elimination of inequality, social insecurity and excess leverage, the strengthening of the middle class as a solid “The risk of seeing the decline in the living standards of the middle class increases.”
In the period of working over the last 30 years, the real wages have consistently strengthened. The increase in the real income of the middle class and the decrease in its influence on the socio-political situation was mainly due to the dynamic of the economy. In the 1960s, the real wages declined by almost 20% for professionals, entrepreneurs and partners of entrepreneurs. This trend did not change in the 1970s. In the early 1990s, the middle class was able to earn a decent wage only for a part of the workers (about 5.5 million people) in the northern states and mainly for the employees of the education system. The opposite trend was observed in the southern states. The lower class included 20 million people, and the average income of a middle class was almost 20 times higher than the incomes of other groups.
There were several trends in the labor market. The marginal interests of the middle class began to be represented. The increase in the minimum wage was followed by a gradual rise in the average income of employees. The activity of intermediaries was more or less stabilized. Finance began to play the role of the main regulator of economic activity.
Increasing the importance of the middle class was reflected in the perception of economic inequality, which, in turn, increased the hopes for certain positive changes in the coming years.
It’s worth mentioning in wealth inequality essay that the distribution of incomes was more uneven in the that era.