Is Income Inequality Taking Over?

Currently, there is a growing discussion on income inequality in America. Income inequality refers to the uneven distribution of wealth in a population. This type of inequality has always been present in the American economy, but the wealth gap has recently been worsening, thus further separating the upper and lower classes. Ultimately, this uneven distribution has lead people to question whether true equality is still feasible in America.
Many people in our culture have adopted the idea that competition “brings out the best” in people. However, I believe that it brings out the worst. Competition is intimately linked to envy, jealousy, and paranoia in many cases. Competition and income equality are related concepts. For one to reach the top, they will have to compete against others. This emphasis on competition can lead to unsportsmanlike conduct between employees. In addition, success can prove to be addicting, causing people to be more and more competitive. Ultimately, income inequality can breed a society filled with corruption.
Some may say that income inequality is not as important of an issue as initially perceived. They may say, “Without this inequality, there would be little economic incentive to earn." They may also say that inequality helps the economy by spurring people to work harder. However, many economists say that income inequality has real consequences for everyone. Joseph Stiglitz, a Nobel Prize-winning economist and an ardent defender of capitalism, has urged that extreme inequality “stifles, restrains and holds back” economic growth as a whole.
Some people believe that increasing minimum wage will reduce income inequality. In America today, there are dramatically more low-income families in existence compared to ten years ago. There are 1.6 million workers who earn $7.25 per hour, and an estimated 17 million workers who make between $7.25 and $10.10 per hour. More and more people are taking minimum wage jobs just to get by. Raising minimum wage will help equalize some of the imbalance between the middle and lower class.This solution will allow us to bridge the gap and eliminate the need for some people to struggle to get by everyday. There are many people that insist that minimum wage remains at a low amount because they believe that teenagers do not deserve a higher pay for a part- time job. They do not support this raise in income because they do not want to help teenagers earn money so that they can spend it on food, games, and malls. There is one major idea that these people have not noticed and that is the fact that more than half the people in minimum wage jobs are adults trying to make a living for their families. The people who do not support the raise are blinded by teenage foolishness and do not see the many families who would be grateful for a higher pay. If these people learn to look past the thoughtlessness of teenagers, they will see that if the support the raise, we will be one step closer in shortening the gap between rich, middle, and lower class.
The economy and their actions take a huge toll on the creation of products. The basic premise of promotions and advancements should be based on performance. What many people do not notice is that, when people often feel discriminated against, they do not feel obligated to work or produce the same amount as their opposing. If you do not treat them in an appropriate manner, it actually affects their level of performance during the task at hand. When an African American sees that a White man is doing the same job and getting paid higher, he realizes that he does not want to do as much work as before because he is being paid lower so, that means a lower production on performance.
Although this unbalance in income has always been a part of the American economy, there are still ways to lower the gap between rich and poor and when that is achieved, we will become one step closer to lowering income inequality in American society. Some companies, if not all, now promotes hiring people based on performance reviews, salaries and compensation and not based on race, sexual orientation, gender, health conditions, or religion. This way, workers are not judged and segregated. This gives all workers a more fair and even ground to work on. With workers satisfied during their task, their performance level will improve because they are all on the same level and would not feel like their competing their way for their paycheck.