In fact, even educated Americans have begun to give up on the idea of achieving prosperity. For instance, 24 percent of young college graduates define the “American Dream” as “not being in debt” (McClelland 553). To further illustrate the decline of the “American Dream,” McClelland observes that “between 1970 and today, the share of the nation’s income that went to the middle class—households earning two-thirds to double the national median—fell from 62 percent to 35 percent” (551). In addition to the falling levels of middle class income since the 1970s, the minimum wage has also remained stagnant, and very low. Author Paul Krugman goes on to report that despite worker productivity doubling, “for about four decades, increases in the minimum wage have consistently fallen behind inflation, so that in real terms the minimum wage is substantially lower than it was in the 1960s” (Krugman).
Kodak’s debt ratio has been improving since 2012 when it was considerably above 1. Their 2014 debt ratio is 0.89, which is very close to Hewlett-Packard and Sony. The debt-to-equity ratio of Kodak is the first signal within the ratios that the company is not performing well. Generally, this ratio should be below 1 and for Kodak in 2014 it was 8.83. Their equity is almost non-existent and this is signaling very weak balance sheet strength.
Throughout the decade, a continuous firing debate still remains, whether to raise the minimum wage or keep as it is. People believe that raising the minimum wage can hurt the economy. More will lose jobs than gain. Though all are true, the amount of poverty shown throughout the decades are jaw dropping. That is in fact one of the leading factors.
The same scenario would reoccur just as it did when the minimum wage was raised before: jobs would be lost. Prices would rise greatly, citizens would lose jobs, and more people will become reliant upon the government if the minimum wage is increased. None of these things are good for an economy, especially one that is already struggling. The consequences of raising the minimum wage rate are very severe.
(See Figure 1) Losing jobs is a serious issue because the unemployment rate would rise. This makes it harder to lower an unemployment rate because you have just raised it. Less people would be able to find jobs as well. When it cost more money to hire low-skill workers, businesses suffer. For example, fast-food chains rely mainly on low-skill workers.
After dropping out of high school, most dropouts do not go into the workforce. A high school dropout will make $260,000 less in a lifetime than a high school graduate. You’re also contributing $60,000 less in federal and state income taxes(Monrad). If you drop out, your plain of careers will shrink tremendously. This is proven by the fact that 90 percent of jobs require you to have graduated from high school (Education Week).
Most college students are left with substantial amounts of debt restricting them from further advancing in their careers after they graduate and the average family can not keep up with the rising costs of education and have to resort to finding other ways to get the desperately needed money. College Tuition--tripling in 40 years, leaving students with large amounts of debt, accounting for 3.3% of the total U.S. gdp-- should be lowered. To start with, the price of tuition in about 40 years has roughly tripled while average family income has only increased by about 11% leaving families to pay money that they do not have. (Shierholz). During the 1973-1974 school year at a public four-year school, the tuition was $2,710 but in the 2013-2014 school year, the price went up to $8,893.
Youth unemployment is everywhere in Canada. Research demonstrates that the unemployment rate is much lower than it was in the year 2008, but still rising steadily (Yalnizyan, 2014; Kolm, 2013). Chart of the week: Lost youth (2013) reports Canada created 574,000 jobs after the recession happened but, just not for the young; the job market is stagnant for university grads aged 20 to 24. When youth have degrees under their belt and cannot obtain a job, this can result in underemployment, discrimination, and marginalization of youth (Ali, 2014). In essence, even after completing six plus years of post-secondary schooling, unfortunately there is still a shortage of employment.
This data shows us that those in the poor of our country are increasingly less likely to get an education that would get them into the middle class or above. The brunt of this downturn can be blamed on the ever increasing price of a college tuition and the perceived lack of social mobility in America. The costs of a college education would be impossible to pay for most Americans without getting into student load debt that averaged $37,000 for the graduating class of 2016 and is only increasing (cite 8). As inequality grows there are more and more Americans for whom these staggering costs keep them from pursuing a degree. Furthermore, research by
One year at the prestigious Yale University will cost an average of $38,300 (collegeboard.com). Many students who deserve to go to this school may miss out because of the cost and lack of financial aid. The rising cost of college may put higher education out of reach for the average American. This paper will look into the reasons behind the steady rise in prices, the legitimacy of a college education, and why recent graduates are struggling to find jobs in this tough economy. A college education is now as necessary for success as a high school education was in the 1970’s according to the job industry.