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Natalie Milline

Ms. Hardy

10th Grade Honors English

28 December 2016

Income, Pay, and Wealth Inequalities

It is well documented there are income, pay, and wealth gaps and inequalities in America

(U.S. Bureau of Labor Statistics). These gaps have persisted for years. Martin Luther King, Jr.

envisioned equality for all Americans. He envisioned all people having full rights to Life,

Liberty and the pursuit of Happiness (Martin Luther King). To obtain these unalienable Rights,

the people in America must be granted fair and equitable opportunities. Fifty years after Kings

I Have a Dream speech, the existence of inequality in income, wealth, opportunities,

education, and living conditions continues (Pew Research Center). This paper briefly

summarizes the income, pay, and wealth gaps or inequalities that exist in America today and why

it is important for America to close these gaps.

HOW IS INEQUALITY DEFINED?

Inequality is defined as the unfair difference between groups of people in society, when some

have more wealth, status, or opportunities than others (Oxford Learners Dictionaries).

Inequalities can exist in opportunities, income, wealth, economics, education, living conditions,

etc. In an article written by the Department of Economic and Social Affairs, inequality may also

exist in legal rights when people are not treated equally before the law (Department of Economic

and Social Affairs 1). For example, people who are hired over other qualified candidates because

of their race is discriminatory.

Income Inequality. Although race inequality exits, there are also inequalities in

economics. Equality Trust describes three types of economic inequalities. Income inequality is

the uneven distribution of wealth (The Equality Trust). According to Equality Trust, income is
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not limited to salary. It includes wages, salaries, benefits, investments, savings, profits, and

dividends. The data from various government statistical sources confirm that income inequality

has increased over the past ten years.

Pay Inequality. Pay is defined as the payment from employment. Pay inequality is the

difference in peoples pay (The Equality Trust). For example, full-time Black male employees

earn 72 percent of the average earning of comparable White men according to Rodgers (Williams

Rodgers).

Wealth Inequality. The total amount of individual or household assets such as ones home,

car, savings, retirement account, etc. minus debts is defined as wealth. Wealth offers privilege

and security that can last for generations. Wealth inequality is the unequal distribution of assets

in a group of people (The Equality Trust). In inflation-adjusted dollars, the median wealth of a

white family in 1989 was $130,102. In 2013, it was $134,008. For an Asian family, the two

medians were $64,165 and $91,440. For a Hispanic family, they were $9,229 and $13,900. For a

black family, they were $7,736 and $11,184 (Boshara, Emmons and Noeth) highlights the

wealth inequality among four main ethnic groups.

WHY ARE THERE PAY, INCOME, AND WEALTH INEQUALITIES?

Some theorized inequalities in income, pay and wealth is because of dysfunctional behaviors on

the part of blacks and other factors such as education, income, and household structures (Darrick

Hamilton and Darity 207). These inequalities can also be explained by differences in

opportunities, individual characteristics, discrimination, as well as the supply of education, and

marriage markets (Fisher and Housewort). Another explanation for inequalities is globalization.

Globalization which has linked the labor, product, and capital markets of economies around the

world and has made available a huge supply of unskilled and low wage workers for companies to

employ (Gupta, Clements and Gillingham). Gender differences is another reason for income

inequalities according to the National Bureau of Economic Research. The National Bureau of
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Economic Research stated that between 1979 and 2005, for example, the income gap between

women working for the median wage (the 50th percentile) and low-earning women (at the 10th

percentile) grew much more than it did for men at those income levels during the same period

(Gordon and Dew-Becker).

Although there are reasons that explain, describe, or support income, pay, and wealth

inequalities, these disparities too often result in many negative societal outcomes. The debate to

increase greater income equality for the sake of improving peoples lives is ongoing.

OUTCOMES OF INEQUALITY

To address equity issues is challenging. While the debate about income equality and equity is

continuing, many people live daily with the negative outcomes of pay, income, and wealth

disparities.

Pay Inequalities. Pay inequality is described by the difference in between peoples pay

(The Equality Trust), which can result in stress and status anxiety that could cause a lot of

damage. (The Equality trust)states In more equal societies people live longer, are less likely to

be mentally ill.

Income Inequalities. Income inequality is described as the uneven pay spread between a group of

people (The Equality Trust), which can result in shorter life expectancy (Why is Income

Inequality Bad?). Bary Burtless states that it seems logical to expect that a more egalitarian

income distribution would lift average life expectancy (Burtless).Obesity is another product of

income inequality. (THE EQUALITY TRUST)found that obesity among men and women as

well as calorie intake and deaths from diabetes, are related to income inequality.

Wealth Inequalities. Wealth inequality is described as the unequal resources between a

group of people (The Equality Trust), which can result in children doing poorly in school (Why

is Income Inequality Bad?). Social science research has found A childs income rankher
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familys income relative to the household income of other familiesmakes a difference for that

childs future adult-income rank as well (Benernstein and Spielberg).

Unfortunately, there are many other negative outcomes stemming from pay, income, and

wealth inequalities. Income and pay inequalities are bad; however, wealth inequality has been

reported as being the worst. The wealth share of the bottom 90% of United States families has

plummeted since the mid-1980s while that of the top 0.1% has soared (Saez and zucman)

FROM INEQUALITY TO EQUALITY

We must shift from pay, income, and wealth inequality to equality to make America great.

Moreover, to create an America where its people can successfully achieve Life, Liberty and the

pursuit of Happiness.

Economists, politicians, scientist, and theorists offer many suggestions on how to shift to

pay, income, and wealth equality. Bernie Sanders stated in a campaign speech how increasing the

federal minimum wage from $7.25 to $15 an hour by 2020 to ensure that people who work 40

hours a week should be living above poverty. (On the Issues: Income and wealth Inequality ). We

should also fully implement The Equal Pay Act of 1963 (U.S Equal Employment Opportunity

Commission) to make employers compensate men and women equally for the same work.

Moreover, America can redistribute income by implementing sound fiscal policy, and

focus on health and education because then expenditures have proven to reduce income

inequality over time (Gupta, Clements and Gillingham). Policies that increase graduation rates

from high school to college and promote equal access to education help reduce inequality

(Kearney).

We cannot ignore the disparities between Black and White families. Therefore, social

justice groups and Congress need to address policies, programs, and barriers that stifle the ability

for American families, especially Black families, to build wealth (NAACP Today Finance).

CONCLUSION
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The fight to end income, pay, and wealth inequalities is about increasing opportunities to earn

above poverty wages, pay fair wages, implement sound income distribution policies, close

income disparity gaps, create more high paying jobs and job opportunities, implement social

policies that improve peoples lives, to name a few. These opportunities are waiting for

Americas leaders to act and make America great for all its people. Perhaps within another fifty

years, America will be a county where there are no pay, income, and wealth inequalities.
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