Economic inequality has been on the rise in the U.S. in the recent decades. Various factors have resulted to the richer getting richer while the middle, working, and lower classes are struggling with relatively flat incomes (Politizane, 2012) . Globalization and technology are among the first to blame for the economic inequality within the U.S. For instance, the emergence of India, China, and other big economies has permitted corporations to shift their production overseas, outsource service duties, offshore functions, and shift capital around freely. These trends have resulted to loss of jobs and reducing wages. Additionally, technology permits companies to automate diverse jobs both mental and physical, eradicating additional jobs. Technology is particularly good when it comes to performing repetitive and routine tasks, particularly one that relates to information processing. Millions of individuals within the U.S. operate in these fields. Automating these jobs leads to a decline in demand for middle skilled jobs. Furthermore, political forces, such as union weaknesses, failure of wages to keep track of living costs and the tax cuts that benefit individuals making money from investments as opposed to wages as well as the rich. Company owners are realizing most of the profits while they comprise of the rich in America (Politizane, 2012) .
In dealing with the issue, addressing the weakness in wage income would serve as one way of closing the inequality gap. This could be realized such as when the government embarks on efforts aimed at restoring the wages’ purchasing power, including revitalising the workers’ collective bargaining power, raising the rich’s taxes, and increasing minimum wages. Furthermore, in the event that technology serves as the cause, increasing equity in schools and colleges would allow people to acquire the needed skills have meaningful jobs. Overall, on the concept leading to a rise in inequality, institutional discrimination would serve as the cause. The reason for this is that corporations lay significant emphasis on skilled individuals while the unskilled people are subjected to low wages, hence leading to increased economic inequalities (Mini-Lecture 10) .
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References
Mini-Lecture 10. (n.d.). Social Class.
Politizane. (2012). Wealth inequality in America. Retrieved from https://www.youtube.com/watch?v=QPKKQnijnsM&feature=share
