The Income Inequality Gap

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Recently, studies have shown that income inequality has many connections that have caused the gap in the United States. According to the research I found, income inequality is connected to corruption, trade, wages of workers, and education. The world income inequality had declined since the twentieth century according to the studies found (Clark). Corruption falls increasing on low income individuals more than higher income individuals. Additionally, the trade theory suggests that the free trade might have level up the income inequality higher within countries by the different patterns of wages and demand for workers who are skilled and unskilled (Silva and Leichenko). Moreover, the education of wealthier people has it easier because the learning efforts of education are unbalanced. Besides, income inequality in the United States is hurting our economy due to the all the issues of corruption, trade, wages, and education. Suggested by Robert H. Frank article called “Income Inequality: Too Big to Ignore,” the income inequality is bad for our economy (Frank). To illustrate the gap of income inequality we can begin with corruption. The effects of corruption not only affects the growth rate, but it also affect the income inequality too (Dincer and Gunlap). Nevertheless, corruption falls more on low income individuals. Why? According to Dincer and Gunlap, “Individuals who belong to low income groups pay a higher proportion of their income as bribes than the individuals who belong to high income groups,” (Dincer and Gunlap). In other words, people who have a lower income pay more money than higher income people in the social class. To go in deeper analysis, corruption has a tax system which favors the higher income individuals more t... ... middle of paper ... ...., and Burak Gunalp. “Corruption And Income Inequality In The United States.”Contemporary Economic Policy 30.2 (2012): 283-292. Business Source Elite. Web. 2 Dec. 2012. Frank, Robert H. “Income Inequality: Too Big to Ignore.” They Say, I Say: The Moves That Matter in Academic Writing. Ed. Gerald Graff, Cathy Birkenstein, Russel Durst. 2nd ed. New York: W.W. Norton & Co., 2010. 580-585. Print. Kawamoto, Koichi. “Status-Seeking Behavior, the Evolution of Income Inequality, and Growth.” Economic Theory. Vol. 39. Springer, 2009. 269-289. Print. 20 Nov. 2013 Olsson, Karen. “Up Against Wal-Mart.” They Say, I Say: The Moves That Matter in Academic Writing. Ed. Gerald Graff, Cathy Birkenstein, Russel Durst. 2nd ed. New York: W.W. Norton & Co., 2010. 606-619. Print. Silva, Julie A. and Robin M. Leichenko. Economic Geography. Vol. 80, No. 3 (Jul., 2004), pp. 261- 286

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