Income Inequality

The gap between the poor and the rich has increased continuously over the years. As the gap increases, the tensions between the upper, middle, and lower class also increase. Income inequality consists of the differences in the income and wealth distribution. The gap between the poor and the rich refers to inequality among groups and individuals in the society, but can also pertain to the gap in wealth between countries. There are several reasons for the ever growing gap between the poor and the rich. These reasons normally are interrelated. The major factors that are cause this difference include culture, education, globalization, labor markets, policy, taxes, technological changes, racism, gender, and unequal pay. A major cause of the growing gap between lies within the wages. Wages are based on the current demand for the operation of that job in a market. For example, when there are a substantial amount of workers trying to work in a similar field, then the supply for that job will be high. If only a few people are willing or looking to do a certain job, then the supply for that job will be low. With an high supply of workers and a low demand for the task, the workers are easily replaceable and the wage will be low.

People from low income families and low income communities are usually less educated, or received a poor education due to their geographical location. This makes unskilled crafts such as a cashier or fast food employee with a high supply of workers. On the other hand, places with a lot of money to spend on education produce intelligent people who usually work in the jobs of low demand, such as an engineer or a science/math professor. The high supply employee is making a mere $24,000 a year, while the low demand employee can make upward to six