Thesis statement: In order to understand the effects of income inequality on average Americans, it is vital to know the factors that contribute to it and how they relate to Americans. Income inequality in the US results from the following factors: Levels of education, discrimination in favor of or against workers’ and workers’ ability, and monopoly power on income. Income inequality was a huge problem in the US in the past years but is currently being phased out.
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Impact of education and wealth on income inequality. Education has proven to be the gateway to most high paying jobs in the US. Employers tend to believe that educated guys have adequate knowledge of the field and can be more productive than their less-educated fellows. Also, wealthy corporations tend to pay their employees more since their returns are much higher, meaning employees have a more significant input. Moreover, most employees prefer college degree graduates to college diplomas and certificate holders to fill in vacancy slots since they are believed to be more skilled and well fit the job. For a very long time, this dogma has proven right since most Degree-Graduate employees always meet their employer’s expectations.
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Impact of discrimination on income inequality. Previously, income was majorly based on race and gender. The patriarchal society viewed males as superior to their female counterparts, and therefore they got higher pay and senior roles in whichever organizations they were based. Also, whites were regarded as superior to people of color, and consequently, they were paid higher. This inconsiderate approach to income distribution brought about many issues such as workers’ strikes and therefore had to be changed. In the modern world, income inequality based on gender and race is an illusion since income pay is directly proportional to the level of an employee’s experience, ability, and training. Moreover, in the modern US, a commission has been established which investigates workers’ discrimination alias Equal Employment Opportunity Commission (EEOC).
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Impact of workers’ ability and monopoly power on income. More skilled employees get to take home a higher income in the modern US than a less skilled employee. This is because more skilled workers contribute more to produce than a less skilled fellow. Monopoly makes corporations exploit workers by paying them less since they cannot apply their skills elsewhere. Employees can also use employers by demanding more significant pay since they know that they are desperate for their services. Therefore monopoly aggravates inequalities.
Conclusion
Income inequality is dependent on many factors, such as education, wealth discrimination, ability monopoly power.
Thesis statement; In order to understand the effects of income inequality on average Americans, it is vital to know the factors that contribute to it and how they relate to Americans.
Works cited:
Impact of education on income inequality https://doi.org/10.1016/j.chieco.2015.12.009
Impact of discrimination on income inequality https://www.hrw.org/news/2013/01/11/discrimination-inequality-and-poverty-human-rights-perspective
Impact of workers ability and monopoly in income inequality https://www.vox.com/the-big-idea/2018/4/6/17204808/wages-employers-workers-monopsony-growth-stagnation-inequality