Unequal income distribution in USA essays

Unequal income distribution in USA essays Unequal Income Distribution in the U.S.A. In recent years, increasing inequality in the distribution of income has been a subject of considerable public concern, political attention, and academic research. Income inequality is a measure of how equally the income pie is divided among all members of society. The relative income, or gauge, can be defined how well the poor are doing economically compared to the rich. In other words inequality is a measure of how equally the income pie is divided among all members of society. According to Paul Ryscavage in Income Inequality in America, income is influenced by several social, economic, and demographic factors. Occupation, industry of employment and source of income represent the economic factors. The main social factors are household composition, education level, and education quality. Finally, age, sex, and race compose the demographic factors (15). Socio-economic diversity can be a clean representation of how well income is distributed among social groups. In an ideal society the majority of households should have incomes above the cost of basic needs to create a well-balanced economy. Therefore, the foundation of economic success is based largely on this distribution providing a strong middle class that can support the economy and no extreme income gap between rich and poor guarantees economic stability. On the other hand inequitable income distribution may not only lead to economic problems, but also social problems. In Created Unequal, Peter Galbraith believes that income distribution analysis shows that the gap widens more and more between social groups and creates problems (3). These problems can damage the developing process of a society, thus finding solutions to create a well-balanced income distribution is essential for present governments. Through the historical review of the background of the issue of income distribution one can present possible solution...