Case 2: Income Inequality
BADM 742: Business Ethics
July 7, 2015
“Income inequality refers to the extent to which income is distributed in an uneven manner among a population. In the United States income inequality is the gap between the rich and everyone else which has been growing markedly by every major statistical measure for approximately 30 years” (Aguiar 2013). Wealth inequality has a close relationship with income inequality due to the nature of not needing a sizeable income because of wealth that was handed down for generations. The supposed problem doesn’t originate from the slogan, “The rich is getting richer and the poorer are getting poorer” but can be best categorized by the slogan, “The rich are getting richer and poor are getting richer but just not as quickly.” The recession officially ended in the US in June of 2009 however many Americans were deeply dissatisfied with the state of the economy. The recession officially ending was more of a political move that did not try to address the economic issues and the income disparity.
In 2013, the medium average American family’s annual income was about $46,700 which is down from $53,100 in 2007. The story is the same for net worth with the median family’s net worth being $81,200 in 2013 down 40 percent from before the recession began. After the recession hit a majority of the toll was taken out on non-affluent Americans so despite what most people think the increase in margins of wealth and income was partially due to the loss of the middle class and the poor and not just from the affluent American gains.
“In 2010 the top 10 percent of earners made about 4.5 times as much as the...
... middle of paper ...
...l Bureau of Economic Research.
Hargreaves, S. (2015). How Income Inequality Hurts America. Retrieved July 5, 2015 from http://money.cnn.com/2013/09/25/news/economy/income-inequality/
Rooney, B. (2014). Income Inequality Hurts Economic Growth. Retrieved July 5, 2015 from http://money.cnn.com/2014/12/08/news/economy/income-inequality-oecd/
Sanger-Katz, M. (2015). Income Inequality: It’s Also Bad for Your Health. Retrieved July 5, 2015 from http://www.nytimes.com/2015/03/31/upshot/income-inequality-its-also-bad-for-your-health.html
Schnurer, E. (2014). Why Inequality is Bad for Economic Growth. Retrieved July 5, 2015 from http://www.usnews.com/opinion/blogs/eric-schnurer/2014/03/14/why-inequality-is-bad-for-economic-growth
Shaw, W., & Barry, V. (2013). Justice and Economic Distribution. In Moral issues in business (12th ed.). Belmont, CA: Wadsworth Cengage Learning.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Wilkinson’s Income Inequality Hypothesis Analysis Richard Wilkinson opened his Ted talk with the chilling statement, “I think the intuition that inequality is divisive and socially corrosive has been around since before the French Revolution” (Wilkinson). With this opening, he states that his Income Inequality Hypothesis is not new, but the way we can evaluate the evidence has changed. Now, we can look at the evidence behind this hypothesis and directly see what inequality does to our society. Wilkinson explains these dangers in his Income Inequality Hypothesis.... [tags: Sociology, United States, Infant mortality]
1345 words (3.8 pages)
- Data Selection & Preliminary Analysis This section outlines the data used in the study and the affiliation between the independent variables and the dependent variable in the model. To analyse the determinants of income inequality, data was collected for 15 developed countries and 15 developing countries covering a time range of 1996-2010. The World databank has been predominately used to obtain the data for the variables, however the Eurostat Statistics Database and the UNU Wider Database has also been used on two occasions.... [tags: capita, education, economy]
1201 words (3.4 pages)
- The term “social justice” has existed since the 1840s and has continued to transform over the years. “Global justice” is simply another in a long line of interchangeable prefixes such as “national justice”, “economic justice” etc that precede the word justice. A plethora of policies are advocated under the name of “global justice”. This paper will consider the more popular proposal of income redistribution and consider its intellectual foundation and how it relates to justice, as well as its real world implications.... [tags: Global Justice, Economic Justice]
2017 words (5.8 pages)
- Distribution of income in any given economy is known as how the income is allocated between households. This phenomenon is not to be confused with distribution of wealth which looks at the ownership of assets in an economy, as opposed to the income. The topic of income distribution is a very hot subject due to the perceived income inequality in the United States. It is talked about on a daily basis on almost every political talk show, news program, business news show, and the list goes on. The reason for it being such a controversial subject is because the income distribution in an economy affects every single person in that economy.... [tags: Lorenz Curve, Gini Coefficient]
2563 words (7.3 pages)
- Cumulative European Union (EU) enlargements to include relatively less developed countries such as Bulgaria and Romania, along with the possibility of future EU status being granted to Turkey and Albania (EC, 2011), raises further questions about inequality in the European Union. The global recession has bought the issue of labour market models and resulting inequities back into the forefront political discourse, as government cutbacks necessitate the reappraisal of welfare states and labour market policy.... [tags: European Union Essays]
1956 words (5.6 pages)
- America was once known as the land of opportunity. However, that is no longer the case. Americans are still suffering from a depression that began three years ago in 2008. According to the Bureau of Labor Statistics, in 2007, the United States unemployment rates were 4.6 percent. In 2009, one year after the depression began, the unemployment rate rose to 7.6 percent. Millions of Americans are living in poverty, unable to afford the basic necessities. On the other hand, there is a minuscule percent of the population that are billionaires.... [tags: Economics]
1700 words (4.9 pages)
- ... A fifth category of outcastes, referred to as the untouchables, represents 16 percent of the population; its members are considered as lowly and unclean as to have no place within this stratification system. The term caste can also be applied in recent historical contexts outside India. For example, the system of stratification that characterized the southern United States from the end of the Civil War through the 1960s resembled a caste system. These social stratifications create different situations where people of different race, gender, age and ethnic groups interact with one another.... [tags: oppressive systems, unequal economic reward]
980 words (2.8 pages)
- When the average person thinks of a 'class system', the first things that spring to mind are the British system of nobles and commoners, and the Indian caste system. In both systems, it can be difficult to rise above the station that an individual is born to. Some societies have loosened the strict codes they once held to. One very good example is the recent marriage of future king of England, William, and his commoner bride, Kate Middleton. William is not held to the same strict standards as his own father was.... [tags: Class System, Society Structures, Nobles, Peasants]
1758 words (5 pages)
- The global income inequality and the Marxist International Theory Introduction A study reported in the World Institute for Development Economics Research at United Nations University , 40% of global wealth were held by 1 %of of adult in 2000, and the richest 10% of adults accounted for 85% of the world total. The lower half of the world's adult population has almost 1% of global wealth. These number income inequality. Income inequality can be divided into two kinds: within country inequality and between country inequality.... [tags: tool, tradition, market, theory]
2683 words (7.7 pages)
- Stakeholder Analysis Naturally there are several stakeholders involved in this debate. This section of this study will seek to identify the various stakeholders involved and to evaluate their stakes. The two biggest stakeholders in this debate are the government and taxpayers. An analysis of the government’s right to claim a stake in this debate arises from their need for revenue from its citizens. As previously mentioned the government needs these revenues to support itself, finance its debt, support those in need and to pay for the various social projects it creates for the citizens benefit or pleasure.... [tags: Tax, Progressive tax, Income tax, Value added tax]
1712 words (4.9 pages)