25 May 2022

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Social Problem of Income Inequality and the Income Gap in the US

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Income inequality has been rising in many developed countries over the last decade, with the United States being the most affected country. Since the 1980s, income inequality has been rising among the developed countries with high income earning more than seven times of the least income earners. Over the last years, United States has struggled with the rising economic inequality and has become an issue of discussion in the last four presidential elections. Income inequality refers to the inequality gap between the money, wages, rent, earnings, real estate, and sales earned by the richest people compared to the poorest. Income inequality also arises from disparity in political power, wealth, social status, and others. Income is vital for every society since it determines most aspects of quality of life like access to quality health care, housing, education, etc. In the United States, income inequality persists among the minority races who are highly discriminated in most sectors of the economy. Whites continue to have more control and privilege over Blacks, Hispanics, and Asians, affecting equal access to quality education, home, healthcare, and employment.

Income Inequality among Races

The social problem of income inequality and the income gap in the US persists among races and ethnicities such as whites, blacks, Hispanics, and Asian Americans. There is a disparity in the way individuals from these races access high-quality education, adequate healthcare, and decent employments (Keeley, 2015). These rising inequalities prevent individuals from certain races and backgrounds, especially low-income, from moving up and maximize their potentials. I have grown up in America, seeing how the Blacks become discriminated in almost every sector in politics, social amenities, and economic sectors. Income inequality is the product of other disparities experienced between Whites and Blacks in American society. As the world becomes globalized and technology advances, individuals who fail to keep up with the changes continue to lag in economic development and employment since they lack the required skills. The skewness of wealth distribution contributes to rising problems as many Black families fail to afford life similar to that of a typical American, especially in purchasing homes. A survey conducted by the Survey of Consumer Finances (SCF) shows that Blacks and Hispanic families have less income and wealth while the whites continue to enjoy income advantage. Black families have less than 15% wealth than whites, while Hispanics report approximately 21% lower wealth than whites ( Aliprantis & Carroll, 2019 ). The median Black family has an income of $24,100 in wealth, representing only 12.7% of the wealth owned by a typical white family ( Aliprantis & Carroll, 2019 ). As for Latino Americans, the median family owns $36,050, representing 19.1% of the wealth owned by a typical white family. The data shows that minority races are discriminated against in income inequality and lack privileges enjoyed by minority whites. 

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The Issue of whiteness

The root of racial inequality among Black which has its roots from the slavery era is still embedded in America's structural racism. The problem of whiteness has led to injustice as White Americans continue to gain privilege over the Blacks. The white culture is slowly evolving the theory that "darkies" are born as beasts of burden to the whites (Bu Bois, 1910). The whites continue to treat Blacks as slaves by giving them manual jobs and poor payments compared to whites with similar education levels and experience. Blacks are viewed as dark in the mind and body, uncertain, imperfect, associated with cheap stuff, and cowards in expressing their feelings based on the whiteness theory (Du Bois,1910). This stereotype makes them victims of discrimination in the workplace. Through experience and reading, one can narrate injustices faced by Blacks as they try to survive in America. A riot of hateful colors the thin skin of European culture is normal in America today. "Everything great, good, efficient, fair, and honorable is "white"; everything mean, bad, blundering, cheating, and dishonorable is ''yellow"; a bad taste is "brown"; and the devil is "black" (Du Bois, 1910). Blacks continue to fight for economic injustices, which has denied them access to better education, healthcare, homes, and employment.

Oppressive Systems caused by Income Inequality

Housing

Ownership of wealth is heavily skewed towards White Americans, with Black being the highly affected racial group. Compared to other races, blacks face discrimination in the workplace in terms of wages and salaries and other benefits like promotions (Keeley, 2015). Most recruitments and hiring processes favor the whites who get collar jobs while Blacks with the same education are given low-paying manual jobs. This hinders them from getting affordable houses. A study conducted by the federal reserve shows inequality in the ownership of homes among different races due to income inequality. 72% of White families owned a home in 2016, while only 44% of Black families have a place to call home ( Bhutta et al., 2020) . The number of Latinos who own a home increased significantly to 45%. The statistics show that many Blacks live in poorly structured houses, which threatens their health due to overcrowding, poor drainages, and poor structures ( Wilson & Williams, 2019) . The number of homeless among Black remains very high, with many street families being Blacks. The current covid-19 pandemic has worsened the situation due to the high loss of jobs among Black Americans. Many Blacks have lost their homes since they can no longer pay their mortgage, which has affected their well-being.

Education Disparity

Persistent income inequality in the US is evidenced by disparity in education among different races. Education is a key element in achieving the American dream since it gives individuals access to a higher-paying job. Due to the high percentage of Americas from low-income families, the level of education among this race is very low compared to that of Whites ( Bhutta et al., 2020) . Most Black students go to public elementary schools characterized by poor structures, inadequate staff, and inadequate resources like computers, books, etc. On the other hand, over 89% of white children attend private schools where they enjoy modern structures, resources, and adequate teachers. Thus, the performance of these students from private schools remains high compared to those in public schools (Keeley, 2015). These white students attend better high schools and universities and later get the best highly paid jobs, while many students from poor backgrounds fail to finish their education. A study conducted by A National Center for Education Statistics shows that Black students have the highest college debts compared to whites. Black Bachelor's degree and Associate's degree graduates face 13 percent and 26 percent more student debt than whites ( Bhutta et al., 2020) . Black Bachelor's degree holders earn 27% lower than whites with similar education, while Associate degree holders earn 14% lower than the whites’ students. Due to this gap in salary and wages, income inequality persists among racial minorities. 

Mass Incarceration and Employment

Whiteness is also evidenced in the US Criminal Justice System, where Blacks make the highest percentage of mass incarceration. A study conducted by Wagner & Kopf (2015) shows that African Americans are five times likely to get incarcerated compared to Whites. Archival footage with testimony from various scholars and activists shows that the high percentage of Blacks in orisons resemble the history of racial inequality in America (Netflix, 2020). Discrimination in stops, searches, and police encounters in the streets and neighborhoods is the major cause of the high incarceration of Blacks. An unwarranted level of imprisonment deteriorates racial disparities as it weakens the justice system and undermines the public's perception of justice. Black is made worse by existing stereotypes as a deviant culture of crime, thus making them vulnerable to search and arrests. Across 12 states of Alabama, Delaware, Georgia, Illinois, Louisiana, Maryland, Michigan, Mississippi, New Jersey, North Carolina, South Carolina, and Virginia, more than 50% of prisoners are Blacks (Nellis, 2016). In Maryland, Black Americans make up 72% of incarcerated individuals. After being released from prisons, Blacks are less likely to get employment due to their criminal records. Those who get privileged are given low-paying jobs which cannot cater to all their needs. The labor for these individuals is kept cheap as the whites generate abundant profit (Du Bois,1910). Denial of these privileges and the high-income inequality gap between the Whites and Blacks thus continue to widen due to denial of equal opportunities.

Health Problems and Access to Health Care

Income inequality is linked to medical problems. As stated by British epidemiologists Kate Pickett and Richard Wilkinson, inequality leads to social ills, including high crime rates, high infant mortality, obesity and overweight, teenage pregnancies, short lifespan, and other forms of health discrimination among women from minority races (Keeley, 2015). Also, social inequality elevates health conditions like blood pressure, blood sugar levels, and psychological conditions due to the release of the hormone cortisol. Other health problems associated with income inequality include cholera and infectious diseases caused by poor sanitation and overcrowding. Despite these many health issues among the low-income neighborhoods, access to quality healthcare services is still a problem. The white continues to benefit from better medical insurance and treatment at the expense of the minority races. The cost of healthcare in the US remains very high, making it challenging for the minority to access these services. Structural racism also presents in the healthcare system hinders the equal provision of services to Blacks, Hispanics and Asians compared to services offered to White patients.

Solution

The poorest members of society suffer immediately from income inequality; however, the entire economy gets damaged in the longer term. There is a need for American society to address this problem before it gets out of control. The problem of income inequality and other oppressive problems like discrimination in accessing good homes, better education, healthcare, and employment can be solved by regulating government policies. The government needs to regulate taxes and transfers to reduce the income inequality gap. Low-income earners should be taxed little to ensure they are left with some money to invest after spending on their families (Keeley, 2015). Low-incomers should also receive more support from the states to enable them to access good education, healthcare, and housings, which will eventually narrow the income gap. Through these supports, Blacks will have equal access to education and other skills required in the competitive economy. Also, the government needs to control the labor market by regulating the minimum and maximum wages received by individuals to reduce the gap between the rich and the poor (Keeley, 2015). Strong employment laws will prevent Blacks from manipulation by White supremacists in salary, wages, and allowances. Also, this regulation should address equal employment opportunities to individuals after incarceration. Through this, the problems of social unrest and re-incarceration will be reduced.

Conclusion

In summary, income inequality leads to other oppressive systems like education, healthcare, access to affordable homes, and employment. The root of racial inequality among Black which has its roots from the slavery era is still embedded in America in structural racism. Income inequality among Blacks extends to oppressive systems like the education system, healthcare, housing, and employment. Most Blacks attend poor public schools that perform lower than private schools, mainly for Whites. Inadequate education and experience further deny Blacks access to better and well-paying jobs. Due to low income, most Blacks cannot afford better houses and quality healthcare systems similar to the whites. Blacks who get released from prisons are highly affected since society fails to absorb them and give and are less likely to be offered a job. As these problems caused by income inequality increase, there is a need for American society to implement better policies and regulations to counter racial discrimination. Reversing the existing racial oppression will deliver economic parity for Americans and create a peaceful and just society.

References

Aliprantis, D., & Carroll, D. R. (2019). What Is Behind the Persistence of the Racial Wealth Gap?.  Economic Commentary , (2019-03). DOI: 10.26509/frbc-ec-201903

Bhutta, N., Chang, A. C., Dettling, L. J., Hsu, J. W., & Hewitt, J. (2020). Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances.  FEDS Notes , (2020-09), 28-2. https://www.federalreserve.gov/econres/notes/feds-notes/disparities-in-wealth-by-race-and-ethnicity-in-the-2019-survey-of-consumer-finances-20200928.htm

Du Bois, W. E. B. (1910).  The souls of white folk . The Independent.

Keeley, B. (2015), Income Inequality: The Gap between Rich and Poor, OECD Insights, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264246010-en

Nellis, A. (2016). The color of justice: Racial and ethnic disparity in state prisons. https://www.sentencingproject.org/publications/color-of-justice-racial-and-ethnic-disparity-in-state-prisons/

Netflix. (2020).  13TH | FULL FEATURE  [Film]. Netflix. https://www.youtube.com/watch?v=krfcq5pF8u8

Wagner, P., & Kopf, D. (2015). The racial geography of mass incarceration.

Wilson, V., & Williams, J. (2019). Racial and ethnic income gaps persist amid uneven growth in household incomes| Economic Policy Institute.

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