Post on 30-Jan-2023
Copywrite 2014: Leonore
Soppet
Wealth Inequality
Abstract
This research paper asks: What is wealthy inequality and
what factor contribute to this sociological problem? After
evaluating expert’s research and looking at both qualitative and
quantitative information the finding support that diminished
labor forces, lack of education and lack of sustainability
contributes to wealth inequity. The sociological solution to this
issue may be is making changes to public policies. Free
education, a fair tax base and an improved labor rights can lead
the charge to reduce wealth inequality and make improvements in
our society
Introduction
There has been much concern over the national debt,
raising taxes particularly those of the wealthiest to balance
this debt and how the income distribution is ill affecting the
middle class. This research paper asks: What is wealthy
inequality and what factor contribute to this sociological
problem? The social stratification, ranks of people based on
their wealth, power and prestige (Carl, 2011) in our nation are
greatly in play here with the future outlook of our generation.
Many people are striving to obtain the American dream of having a
quality education, getting a good job when we out of college,
owning a car, a house, and supporting our families. However,
this social issue of wealth inequity now plagues those dreams, it
creates a huge social inequity on many levels and it interests me
to look at how this impacts the poorer middle class.
This social issue has already had some made media coverage
when it had consistent news coverage as a social revolt called
“The Occupy Movement” myself as well as others can relate too
many of the issues that were highlighted by those called the 99
percent. Like other students, many work a full time job at
minimum wage and scrape by to pay for greatly increased school
tuition and books. Our income levels do not afford car insurance
or healthcare. Healthcare options for students are difficult to
obtain, we make too much on minimum wage yet don’t make enough to
pay for it. In today’s labor market many college educated people
are not finding high paying careers and are in work without
benefits in jobs that exploited their talents because jobs are
hard to find. The employer attitudes of major corporations are
“take it or leave it” as they seek to increase revenues. This is
of concern. Many ask: Will our generation even be able to
support itself? The American dream seems to be unattainable.
Many others in our current generation share that shattered
dream. Instead a nightmare is present in that our generation
can’t afford basic living essentials such as healthcare, rent,
and food. Poverty levels have risen almost overnight. Labor
market prospects for college-educated Millennials have barely
improved since the fall of 2011 when Occupy first burst into
public view. The level of student debt continues to soar leaving
crippling debt to those newly entering the labor market.
(Milkman, 2013). This is a huge social issue of income
inequality. Instead of finding the kinds of professional
opportunities students aspired after graduating, many end up
working as unpaid or poorly paid interns or at best in
economically precarious jobs for which they are often
overqualified. The disparities are becoming increasingly larger
between the social classes, there are increased poverty levels,
and more unemployment and employment of those overqualified, and
more crime since people are not able to make ends meet.
Scholars in sociology may look at wealth inequity thru two
different lenses; this is depending on the theoretical views. A
sociologist with a fundamentalist viewpoint believes that our
social system has many different positions. The work force in
our society has to have many types of people from busboys to
scientists and these all need to be filled for a civilization to
have balance and work properly. However, symbolic
interactionists will dispute that ideal, the theory held by them
is that the wealthier have an inherent bias. Their wealth leads
to being less sensitive to social inequalities. The poor or lower
class become stigmatized and higher standards that is often for
affluent families seem harder to attain so eventually the bar is
just lowered (Carl, 2011). Scholars may look at this issue as
that of income inequality and it may also be underpinned by some
economics whatever the case, this social issue is strong because
they support both prejudices. First of all, a social system that
works for only the wealthiest is not equitable to those who are
the middle, working and lower class. The national moral is both
debilitating and failing the majority of the people. Secondly,
the people who represent the top, the 1 percent, have been the
gluttons that have filled their plates over the past few decades,
and now it seems everyone else has to pick up the bill.
Literature Review
Wealth and Income Inequity
The majority class, called the middle class, is outraged at
the huge disparities in wealth and incomes levels. Calling
attention to this economic situation has been the Occupy
Movement, also called “the 99 percent” due to a creative slogan.
The Occupy movement highlights huge salaries of Wall Street and
the big money giants that truly represent a small percentage, but
of those of the highest earnings and most influential power.(Car,
2011) The majority class, struggles as obtaining basic
necessities is becoming much harder on middle class America.
They middle class are outraged at the huge disparities in wealth
and incomes levels. The 99 percent or Occupy Movement looks at
income inequality in that biggest component of the increase in
after-tax income for the top one percent is "business income" as
opposed to income from labor or investments (Economist online,
2011) This is a system that works well for the very richest has
delivered returns on labor that are disappointing for everyone
else. Also, according to the Economist report, top rankers have
made out like robbers over the past few decades, and now everyone
else must pick up the bill. The taxpayers are being forced to
subsidize the excesses of the wealthy. Of course it is a little
more complicated than that. But this suggests the feelings in
America of the 99% towards the 1%. (Economist Online, 2011) Info
graphics on the distribution of wealth in America, which
highlighting both the inequality and the difference between our
perception of inequality and the actual numbers shows that the
gap and reality we assume is hugely unrealistic. “A huge share of
the nation's economic growth over the past 30 years has gone to
the top one-hundredth of one percent, who now makes an average of
$27 million per household. The average income for the bottom 90
percent of us is $31,244. Productivity has surged, but income
and wages have stagnated for most Americans. If the median
household income had kept pace with the economy since 1970, it
would now be nearly $92,000, not $50,000.” (Gilson and Perot,
2011) These bring us to income inequality and the lack of jobs in
the labor force.
Diminished Labor Force
Income Inequity is being exacerbated by the lack of jobs in
the in the labor force. According to Robert Reich, even if new
jobs were created at the high rate for the next decade, attaining
6 percent unemployment would not result until 2024. If job growth
stays stagnant we won’t crawl out of the job slump for another
generation. Why? Americans have priced themselves out of the
global high-tech labor force. (Reich, 2011) The labor force is
changing in America and our nation has people that outnumber
viable jobs. According to the Carl, nonviable jobs are within
our labor markets but these jobs would not be able to sustain the
cost of living day to day. The poorest of the poor have these
jobs in which the focus of main stream America is the middle
class. There are several factors that point to why our nation
has a decreased relative demand for unskilled labor within middle
class America.
Computer Era
Labor has diminished because of the spread of new
technologies that displace low-skilled workers and rewarded the
more highly trained. (Wilson, 1996) As America becomes more
industrialized, machines and computers have automated many jobs.
The need for people in positions where a machine can produce high
speed repetitious work is replaced. The computer era has come of
age eliminating some jobs.
Higher Education Requirements
Another factor is the rapid growth in college enrollment
increased the supply and reduced the relative cost of skilled
labor (Wilson, 2011) Kiester agrees with this concept in that
her insight into the process of social stratification suggests
that childhood experiences shape adult well-being, particularly
adult wealth ownership. Hence the generations that continue
upward trends of upper mobility, higher education, can attain it.
The findings contribute to understanding of social income
inequality by identifying processes that facilitate mobility.
(Keister, 2007) Carl states that while the upper class is able
to afford the luxury of higher education, thus keeping their next
generations at the same social class, those without college
educations remain at the poorer levels in our society. Upward
mobility among the social classes is far less attainable.
However, Wilson believes that social isolationism, "the lack
of contact or of sustained interaction with individuals and
institutions that represent mainstream society", is a result of
lack of employment. When unemployment becomes a norm within a
community then social isolation excludes them from networking the
system, thus a vicious cycle is perpetuated. Income inequality is
not problem of the underclass but one of isolation of necessary
resources. Necessary resources are higher education and training
programs. (Wilson, 2009) A culture of poverty implies that basic
values and attitudes of the lower subculture have been
internalized that the nature of this enhances the effects of
living to social structural constraints and opportunities.
(Wilson, 2009) Society begins to accept the social
stratification created by income inequities and decreased labor
markets. Higher education leading to class advancement is
limited.
World Trade Markets
Lastly, the growing internationalization of economic
activity, including trade liberalization policies which reduced
the price of imports and raised the output of export industries
(Wilson, 2009, Schwartzman 1997; Krueger 1997) Our society is not
sustainable economically. With income inequity at this pace,
society won't be able to buy what the economy could otherwise
produce. This continues a cycle to higher unemployment and lower
wages. Hence, Reich makes a point that this is “not sustainable
politically because Americans won't stand for it and demand
change.” Here we have the Occupy Movement that has surfaced as a
result of the Income Inequity. Our global community has now been
affected by the wealth and income inequalities that our nation
reeks of. As these issues drive deeper into our society it
festers, we lose the power structures even among other countries.
This reflection begins to show signs of wear on our society. Our
society in turn begins to decay with social issues created by
income inequality.
Social Problem Associated with Income Inequality
According to Wilkinson and Picket, population health tends
to be better in societies where income is more equally
distributed. The Income Inequality creates a gamut of problems
in society. Data suggests that social problems including mental
illness, crime, imprisonment, lack of trust, teenage births,
obesity, drug abuse, and poor educational performance of school
children, are also more common in more unequal societies.
(Wilkinson and Picket, 2009) Social problems between more and
less equal societies seem to be large and to extend to the vast
majority of the population. Our local media, Channel 2 News,
currently reports an increase in welfare recipients, more people
needing healthcare services and higher unemployment numbers.
Income inequality has become problematic in our society.
The trend has been a higher correlation of crime in areas with
lower socio economics. Carl agrees that poverty is an indicator
which correlates to higher crime rates. People depleting the
social welfare assistance programs to get healthcare and housing
as the income inequalities continue to worsen. These
relationships are likely to reflect sensitivity of health
concerns and of the many social problems to the ranks of social
stratification and to status competition. This is underpinned by
societal differences in income and material inequality. (Wilkinson
and Picket, 2009) Income Inequality is a social problem that
needs change. Our social structures need to level the playing
field so it is not grossly disproportioned. It would be highly
beneficial to create some social reforms to alleviate the problems
and work toward a balanced solution.
Social Solution
Changes in Public Policy
Something must be done to reduce the income inequality
present in our society. Some of the solutions which can be
considered are changes to our public policies such as free public
education, equitable taxes proportionate to wealth and
strengthening employment opportunities for the middle class and
welfare recipients. Those who reach the time limit for the
receipt of welfare, if the economy slows down, will flood a pool
that will be already filled with low-skilled jobless workers.
According to Holzer, 5 to 10 percent of the jobs in central-city
areas for workers who are non-college graduates require very few
work credentials or cognitive skills. This means that most inner-
city workers today only need to have the basic skills of reading,
writing, and performing arithmetic calculations, but need to know
how to operate a computer as well. Most employers require a high
school degree, particular kinds of previous work experience, and
job references. Because of the large oversupply of low-skilled
workers relative to the number of low-skilled jobs, many low-
educated and poorly trained individuals have difficulty finding
jobs even when the local labor market is strong. (Holzer, 1996)
To preserve our future, we must significantly raise the level of
education among the lower wealth classes, equalizing educational
opportunities which will in turn increase our diminished labor
forces.
Free Education
As a main proposed solution, every American should have an
equal right to the same high-quality education no matter where he
or she lives and how rich their families are. The degree of
wealth should be inversely proportional to the ability to get
into the better universities. This solution would propose a set
of laws, to be enacted by Congress and enforced by all schools
and universities. It should stipulate that the poor have the
greater chance at better education than the already rich. This
free education should include training for vocational careers and
higher technology which can make us more sustainable as a nation
and in global markets. It addresses a problem critical to the
future of the United States as a country and as a free society.
In addition, the purpose here is not only to increase the
proportion of the poor in the better universities, but also to
balance the ratio of the poor to the rich in controlling power.
It was said that “those who hold the gold, make the rules”
(unknown) but with more education, balanced leadership will take
place and the middleclass will be a voice in that power.
Educated and diverse voices will balance positions in the three
branches of the government and to heal the fissure that is
dividing the country. (Amer, 2013) Fully-funded higher education
would allow students to graduate without carrying crippling debt,
ensuring that society would realize full and immediate economic
and social returns of a highly educated society. A better
educated society will realize more efficiency when human capital
is realized because then our economies thrive and grow. (Amer,
2013) Society will be a healthier and safer since educated people
make better choices. As the quality of life increases our social
welfare systems are less burdened. . Lastly, the overall
increased prosperity is a boom to the human race because everyone
can collectively help one another.
Taxes Proportionate to Wealth
Taxes are levied directly on personal or corporate business
to finance government expenditures. They finance public goods and
services such as safety and sanitation. Another large part of
government expenditures are to protect wealth. This includes
part of what we pay for law enforcement, diplomacy and the
military. Those with the most to protect should pay their fair
share for the protection. This is a simple fairness argument for
taxing wealth. Jamie Johnson, the heir to the Johnson and
Johnson pharmaceutical empire, pointed his documentary lens in
the direction of the privileged. He stated that he does not see
why increased tax based on wealth can’t be paid by those who can
pay more. Often the financial revenues are stable and renewable
each year for the wealthiest. The mind boggling financial income
is so high, that it could be a solution to improving government
programs and reducing national debt.
Further income tax that takes a larger percentage from
higher incomes and a smaller percentage from lower incomes,
meaning that the poor keep a larger percentage of their income
than the rich do, can be justified if the government uses the tax
money to fund different programs, including some that target
poverty and inequality.(Sparksnote, 2013) If most people had
significant accumulated assets, the economy would be more stable
and people would be in a better position to find the jobs that
suit them and bargain for higher wages. Essentially, taxing
capital gains as ordinary income would make the playing field
fairer, and over time reduce income inequality.
Improve Earnings and Strengthen Labor
Society needs to improve the earnings and working conditions
of low-wage workers. Minimum wages should be indexed to
inflation. Wages should be set at a level so that no full-time,
full-year worker lives in poverty. Despite minimum wage increases
across the country, this is not happening and people are living
at poverty level unable to meet housing and food needs. Housing
Supplements and in kind services (food stamps and welfare) alone
do not make a significant difference if income earnings do not
allow the lower class to ever rise above and be financially
independent. Wage level must be sufficient to elevate above
poverty levels and proper checks should be in place with labor
standards.
Enforcing labor standards and implementing a broad agenda
of education and advocacy on workplace rights, including the
rights of workers to collectively bargain will also assist in
reducing income inequality. Rising inequality is rooted in the
loss of good, middle-class jobs. Stronger unions will raise the
wages of the lower-paid, and also narrow the large and growing
income gap between ordinary workers and the top 1 per cent made
up of the corporate and financial elites, not just in the
workplace, but in the wider society by advancing a progressive
political agenda of fair taxes, income security, and quality
public services for all citizens. (Hickey, 2013) However, the
political arena for unions, which are complicated, often can
advocate agendas of their own and some caution would have to be
made with progressive political agendas.
Sociological Conclusion
Collectively, all the information which has been absorbed
through this literature review has led to my increased
understanding of wealth inequity. As a social problem, it has
many different facets in which it affects society. The issues of
poverty, politics, social welfare programs, unemployment, crime
and health were all embedded within wealth inequity. This
research explored a portion of the causes which contribute to
wealth inequity, such as diminished labor forces, poor education
and training and our society’s lack of maintaining
sustainability. The population has numerous problems that are
underpinned with the differences in income and materials
inequality. If our society can find a way to level the playing
fields, the social reforms can alleviate the problems and work
toward a more balanced society.
The research question was able to be addressed. But it is
complicated and has huge political and economic arenas. Free
education is a solution that would elevate society and perhaps
find some brilliant minds among classes of people that would be
otherwise not seen. Although embracing free education is
desirable, I don’t see that society is ready to allow this since
many groups are still very classist. Obtaining a fair tax base
would seem reasonable. However, with the top percent still
making decisions in their own best interest it may be difficult
to maneuver this reform, as witnessed in congress with different
political parties. Middle class America needs to strengthen
labor and begin to level earnings. As our labor force is trained,
the work conditions can improve, and then wages can be increase
to sustain people. This all trickles down to help everyone
flourish. Our society will improve as a whole.
I believe that our society has a future direction. It will
take our generation and those ahead of us to make this happen.
As we realize that the American dream is not attainable there
will be a search to make wealth more equitable, as the 99 percent
movement is already drawing attention to this social issue. Our
generation will begin to make the changes which improve our era.
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