Many people are accurate when they say that the rich are becoming richer and the poor are becoming poorer. The income gap is at its peak in the United States today and it is the widest it has been since the Great Depression, according to Steve Tarlow at MoneyBlog. In September, the US Census Bureau reported that the income gap is the widest it ever has recorded. More and more Americans are living in extreme poverty and desperate circumstances. The US Census Bureau stated that in Washington D.C. the rate of extreme poverty is 10.7 percent, which is very high. Hardest hit are young adults between ages 18 through 34, especially the ones without college degrees, because they are having trouble finding jobs. Companies tend to hire older and more skilled workers. University of Wisconsin professor, Timothy Smeeding, said that “the declining economic fortunes have caused many unemployed young Americans to double-up in housing with parents, friends and loved ones, with potential problems for the labor market if they don't get needed training for future jobs.” Another effect the income gap is having is that approximately 12 million households in the United States are receiving food stamps, according to the World Socialist Website. Smeeding also said that “more than other countries, we have a very unequal income distribution where compensation goes to the top in a winner-takes-all economy." Those that made over $100,000 yearly, the top 20 percent of the population, received about half of the annual income in the country in 2009. Those in poverty only got 3.4 percent of the income. Although other countries also have income gaps, the United State's is the most dramatic. Is it fair that there is such a large income gap? Is the income gap a problem? If so, what could be done to fix it? How could the income gap potentially affect students like you?
Links:
http://personalmoneystore.com/moneyblog/2010/09/17/income-gap-great-divergence/
http://www.google.com/hostednews/ap/article/ALeqM5iCuYeWPyl7zqXPWi1Ck9mmYyAr7wD9IGP99G1?docId=D9IGP99G1
http://wsws.org/articles/2010/sep2010/cens-s29.shtml
http://www.usatoday.com/money/economy/2010-09-28-census-income-gap_N.htm
Links:
http://personalmoneystore.com/moneyblog/2010/09/17/income-gap-great-divergence/
http://www.google.com/hostednews/ap/article/ALeqM5iCuYeWPyl7zqXPWi1Ck9mmYyAr7wD9IGP99G1?docId=D9IGP99G1
http://wsws.org/articles/2010/sep2010/cens-s29.shtml
http://www.usatoday.com/money/economy/2010-09-28-census-income-gap_N.htm
I think the large income gap is a very big problem. Many wealthy people are wealthy because of their families are, and middle class is still working hard to make it to the top. In today's eocnomy though finding a job is more difficult than ever, and as a result it seems we are turning into two separate groups, the rich and the poor. We have seen products raise in price, for exmaple gasoline. For a long time the price of gas was a huge issue, causing Americans to spend most of their money on gas. Luckily, the prices of gas has declined, so hopefully we will see other sales prices decline in our society as well. We have learned about the poor and the rich in my Sociology class, and in 2007 37 million Americans fell below the poverty rate, and 50 million are near being below this poverty line. A reason for this is because the annual income for the top 5% of families is 174,012 while the annual income for the bottom 20% of families is 20,035 dollars. These two amounts are vastly different which explains why there is such a large income gap. I am not sure what could be done in order to fix this, because no matter what those with higher degree and better jobs will always be payed more compared to a garbage man for example, or a check out clerk. If this gap continues to increase, then that would mean for us students being wealthy would be harder to attain, and we will have to work harder than ever to make it financially.
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ReplyDeleteThis income gap is getting bigger and hopefully something will put an end to this process soon. Perhaps companies should reconsider how much they are paying their top employers, and instead hire more employees. Companies should also try to not send work over-seas so that Americans can instead make a living. Additionally, minimum wage should be increased to keep up with the rising cost of living. With the absence of enough middle class jobs, it is more and more difficult for lower class people to move up, making it extremely hard for people to move out of poverty. This trend of low mobility, seems to be making our country more like a class system instead of a country of equal opportunities.
ReplyDeleteI feel very fortunate to be able to attend college, and I hope to be able to get a job that fits my degree when I graduate. However, since companies are hiring more experienced workers, I feel that our chances of getting a job right out of college get slimmer and slimmer.
I think it is unbelievable that, as Laura mentioned, the average annual income for the top 5% of families is over $170,000 whereas the average annual income for the lower 20% of families is only about $20,000. Something needs to be done to make the gap between these incomes shrink drastically. Also, I was not surprised at the fact that the "hardest hit [by the struggling economy] are young adults between ages 18 through 34." I have heard before that if you grow up in a lower class or struggling family, it is very hard to get out of this situation yourself. I can see this because today, a vast majority of the best paying jobs require a college degree, but if you are in a struggling family, it can be extremely difficult to go to college. Some families rely on their sons and daughters to work and help provide for the family, and therefore they cannot afford the foregone income if their child pursues their education. Furthermore, they can struggle immensely with paying for college, but financial aid from the government can help with this situation. I am also not surprised by this because adults between 18-34 have recently gotten out of college and finding a job these days is very difficult.
ReplyDeleteOverall, I think the growing gap is sad in our country and something needs to be done. I think it is now more of a 'norm' to, after college, to go live back with your parents for a few years or with other people, to offset some of the living costs, because prices for everyday goods have increased and even finding a solid job at all is very difficult in todays economy.
The income gap is definitely a major problem in our country. Although many people try to deny it, I think that these facts and statistics show that not everyone receives the same opportunities in life. It is true that some people work very hard to gain the wealth and income that they have, but for others this seems to be an impossible feat based on the circumstances they grew up in. A child from a wealthy and affluent family has all the opportunities and resources to do well in school, to get into to a good college and to get a good job that pays well. On the other hand a student from a poorer family has to work extremely hard to maintain good grades in hopes that he or she will receive enough financial aid and scholarships to be able to afford college. I think that this income gap needs to be decreased greatly. This maybe will be able to be accomplished through some government reform on the distribution of wealth in this country. I believe that people who make more money should have to pay more taxes than those who don’t make a lot of money. I can also see this income gap affecting many students like myself. Since the job market is so tough at the present time there is really no guarantee that a person can find a job even with a college degree.
ReplyDeleteThis is a huge and growing problem in our society. So many people are considered in or near poverty circumstances. This poverty line creates a vicious cycle of being poor and struggling to even get food or keep a roof over you and your family’s heads. It’s hard to imagine for many of us what this would be like. People are stuck in this circumstance. They start off poor and cannot keep an education or gain one because they have so many other responsibilities like keeping a job or many jobs. The only way to get an education it seems is to pay large sums of money that these people just don’t have. So how are they supposed to get a better job if they can’t afford the education or afford to take that time away from earning money that they need to survive? Something needs to be done to help people in these situations. They are stuck and the government needs to find ways to help them out. They need to provide some sort of higher education which is low cost and give these people the ability to not go broke while spending time in school rather than at another job. It is hard to see them stuck and having little to no options of getting out of this situation.
ReplyDeleteDuring the recession, the US economy was in a declining and worrisome state. This issue has affected many Americans, especially those regarded within the “middle-class” and “poverty level.” With the crash of the financial market and huge bailouts from the federal government, it was almost certain that economic landscape was beginning to alter in a negative way. The parity between the rich and the poor was almost unobtainable. Our economy was dictating people’s lives and forcing them to hold more weight in making financial decisions. During the recession, the unemployment rate was just around ten percent. Meaning finding jobs presented new obstacles. Even college graduates where having difficulties finding jobs that where suitable to their major. Jobs were a scarcity. So if the middle-class and college graduates are having issues finding jobs one can only imagine how this affected Americans in the poverty level. Furthermore, the fall of the economy is expressed by many different theories. Such being, bailouts for banks, the decline of the housing market, the failures of small businesses, issues within the healthcare system, and the growing costs of education in correlation with more need for financial aid. In essence the economy made the rich prosper and made the middle class and poor go looking for answers. The government along with President Obama has acted urgently to get our economy back on the right track. The income gap is a negative implication as a result of the economy. What is truly astonishing is how the richest country in the world is having trouble in creating balance and stability within the economy. We can only hope that moving forward will be one of positive reinforcement and give each American equal opportunity in finding prosperity.
ReplyDeleteThe income gap is a much larger issue than a majority of people realize. If it continues, the U.S. has a high chance of yet another financial crisis. Before reading Tilly's blog, I was uninformed about the income gap and how harmful it is to the economy. It does appear that the wealthy are becoming wealthier and the poor are becoming poorer, which is not fair especially in the United States' current state of economy. There are many possibilities to fix the problem, but it requires a lot of time, attention, and money. Also, if the U.S. Government does plan on narrowing the income gap, it would be more beneficial to look into long-term effective and sustainable ideas instead of a "quick fix." For example, more jobs are currently seeking college degree holders. It is a known fact that people with college degrees earn more money in their lifetime than those without degrees. Therefore, the U.S. government should invest more money in the school systems to prepare the upcoming generations for the work force. Usually, the first thing cut in tough financial times is educational funding. Even though it has become increasingly harder for college graduates to find jobs, a strong educational background will open more doors for them. I am hoping that by the time I graduate from Merrimack, the job market will be more stable, and finding a job will not be as difficult for me as it would be now.
ReplyDeleteI agree with Fiona. If companies could somehow cut back its salaries amongst its top, high-paid employers and hire more employees within the company the income gap would be decreased. The statistic that surprised me was Americans who had an income over $100,000 yearly received about half of the annual income in the country in 2009. This income gap places a strain on middle and lower classes to “make ends meet.” Oftentimes, members of middle and lower class families have to work two or three jobs to support their family. In today’s economy, it is even harder for Americans to be able to afford a home and support their family. I don’t think that it is fair that there is such a large income gap. Every American should be able to live in this country and work hard to earn a living. I agree with the statistic of Americans (between 18-34 years old) finding difficulty in securing a steady job. Even with a college degree, many Americans still find themselves settling for “blue collar” jobs. Although President Obama addressed the rise in unemployment and created more jobs, Americans are still struggling to “make ends meet.” Looking ahead to the future, I hope earning a teaching degree at Merrimack will enable me to find a job in such rough economic times.
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