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Income inequality research
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When speaking on inequality, both Stewart and Reich talk about it in terms of a problem that has been around for years, yet has been continuously ignored. Reich addresses the problem in the film by showing the origin of the current income disparities, while Stewart shows the problem specifically in offshore funds.
Early in the film, Reich shows a picture of a suspension bridge that is joined by two columns. Each column represents of the highest points in the economy: 1928 (right before the Great Depression) and 2006 (right before the Great Recession) (Reich, Inequality for All). The cords connecting the column represent the state of the overall state of the economy, starting with a quick fall during the depression, an increase from the 70s to the early 2000s, and then another sharp decline after the crash in 2007. Throughout the film, Reich mapped other trends onto this map, such as:
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The Schwartz article has an example of stagnant wages: a man who was working in KFC in the mid-90s was earning $5.50 an hour at KFC. This same man was working at another KFC 20 years later and earning $7.25 an hour. When adjusted for inflation, the man was earning $8.61an hour in the 90s, a full $1.31 more than he is currently earning (Schwartz, “Low-Income Workers See Biggest Drop in Paychecks”). The stagnation of wages doesn’t harm the wealthy, but it drastically affects the middle and lower classes. In fact, Reich also showed the pay increase of the highest paid CEOs compared to the average worker. The average worker’s annual pay has gone done about $5,000 since the 1980s, yet the average CEOs pay has almost tripled – well into 6-digit figures (Reich). Again, the person this affects the most is the lowest end of the spectrum. Reich showed how much it was affecting people by giving specific case studies – showing people who were making too little to live on, yet having to try to do it
Robert Reich's Vicious Cycle is a cycle that the American economy is currently stuck in. It refers to a series of variables that all feed into each other to increase economic inequality. It is possible to start anywhere in the cycle, but here wages stagnating will be first. When wages stagnant, workers can't buy as much. When workers can't buy as much, companies have to downsize because less people are buying their products. When companies downsize, their tax revenues decrease because the payroll amounts go down. The payroll tax is important in terms of generating revenue for the government. Because the government has less revenue, they have to cut programs. Cutting programs leads to rising costs in education, because education is less subsidized.
Inequality, itself, may seem like an aspect that is surrounding the academic subject of history. An American economist, Paul Krugman, substantiates that inequality exists within our society through connections to several important historical movements. “One of the best arguments I’ve ever seen for the social costs came from a movement [...].” (Page 562) He implies how inferior inequality could be, and discusses why he along with a wide array of an American audience, may give some attention to its rising. Krugman makes “Confronting Inequality,” interesting, challenging, and enjoyable. This author approaches the audience by giving a powerful inception, and appealing to the senses of ethos and pathos.
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
The article discusses the minimum wage has not kept up with the current cost of living, and that it is
Wilhelm, Heather “The Great Income Inequality Sham” Real Clear Politics. May 2013. Web. 29 Apr 2014.
In the United States there are four social classes : the upper class, the middle class, the working class, and the lower class. Of these four classes the most inequality exists between the upper class and the lower class. This inequality can be seen in the incomes that the two classes earn. During the period 1979 through the present , the growth in income has disproportionately grown.The bottom sixty percent of the US population actually saw their real income decrease in 1990 dollars. The next 20% saw medium gains. The top twenty percent saw their income increase 18%. The wealthiest one percent saw their incomes rise drastically over 80%. As reported in the 1997 Center on Budget's analysis , the wealthiest one percent of Americans ( 2.6 million people) received as much after-tax income in 1994 as the bottom 35 percent of the population combined (88 million people). But in 1977 the bottom 35 percent had about twice as much after tax income as the top one percent. These statistics further show the disproportional income growth among the social classes. The gr...
In the documentary “Fed Up,” sugar is responsible for Americas rising obesity rate, which is happening even with the great stress that is set on exercise and portion control for those who are overweight. Fed Up is a film directed by Stephanie Soechtig, with Executive Producers Katie Couric and Laurie David. The filmmaker’s intent is mainly to inform people of the dangers of too much sugar, but it also talks about the fat’s in our diets and the food corporation shadiness. The filmmaker wants to educate the country on the effects of a poor diet and to open eyes to the obesity catastrophe in the United States. The main debate used is that sugar is the direct matter of obesity. Overall, I don’t believe the filmmaker’s debate was successful.
Reich, Robert B. “Why the Rich Are Getting Richer and the Poor, Poorer.” A World of Ideas:
The observer can see this through the explicit cinematography of the movie and depiction of the Great Depression made by the director. However, the director left out a key aspect of the events of the depression, the stock market crash. Perhaps, this catastrophic event was irrelevant to the plot and message of the movie, but it is important to the actual Great Depression of the United States. Furthermore, the nation of 2010 is well on its way to repeating history. There are frightening similarities between that dreadful time of the 1930’s and the present that should not be overlooked, or the United States might condemn itself back into that horrific state it has so long tried to avoid.
She explains that the poverty level for any size family is figured by taking the cost of food and multiplying it by three (Ehrenreich, 2011, p. 200). When this figure was first introduced in the 1960s the percent of money spent on food and housing in a family’s budget were similar. Comparing it to the percent of money spent on food (24%) and housing (29%) in the 1999s you’ll see there’s a lot more money being spent on housing (37%) than food (16%) (Ehrenreich, 2011, p. 200). So on paper the poverty level seems to be decreasing and make it seem like most people in America are not living in poverty. This clearly is not the case, looking at the percentages given by Ehrenreich (2011), the cost of housing increased dramatically leaving many people still living in poverty. The way American is framing the poverty levels is very deceiving, many people are living in poverty, and finding it extremely hard to get out of poverty. Ehrenreich in her evaluation said, “the ‘working poor,’ as approvingly termed, are in fact the major philanthropist of our society” (Ehrenreich, 2011, p. 221). She says this because throughout every job she had and all the co-workers she encountered they all had families or personal concerns, but put those to the side for their shifts to make sure others were feed, had clean homes, clean fitting rooms and organized shopping centers (Ehrenreich, 2011,
Sutter, John. “What is income inequality, anyway?” CNN. 29 Oct. 2013. Web. 13 Feb. 2014.
There are frequent footnotes in the novel, many of them containing statistics about low-wage lifestyles. One claims that “In 1997, a living wage for a single parent supporting a single child in the Twin Cities metro area was $11.77 an hour” (Ehrenreich 127). Throughout the novel, Ehrenreich never gets paid this much in any of her jobs. In fact, she is amazed when a potential wage for a job is “not $8.50 but an incredible $10 an hour” (Ehrenreich 142). Even living on her own Ehrenreich could hardly pay for the basic necessities to live, it would have been impossible to do so with a child to care for as well. Another statistic stats that “Nearly one-fifth of all homeless people (in twenty-nine cities across the nation) are employed in full- or part- time jobs” (Ehrenreich 26). This fact shows the flaws in the low-wage workforce. After all, minimum wage is meant to be designed to be able to support people with necessities such as shelter and food, yet 20% of those without homes cannot afford shelter with these wages. Through these statistic, ehrenreich is able to establish that it is nearly impossible to live a decent lifestyle with just low-wage job
If I had to describe a moment from INEQUALITY FOR ALL that is really sticking with you – maybe you found it particularly inspiring or particularly troubling it would be the statement made by Robert Reich, “Of all developed nations the U.S. has the most unequal distribution of income.” What was it about that moment that is so memorable? He also states, “the richest 400 people in America have more wealth then the bottom 50 million of us put together.”
“Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor.
Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality.