Why Income Inequality Will Get Worse Before It Gets Better and What You Can Do About It

Written by on June 28, 2016 in Economy with 4 Comments
image_pdfimage_print

Income inequality word cloud concept-compressed

By Odysseas Papadimitriou | AlterNet

We’ve all heard about rising income inequality, and for good reason: It’s a huge problem. Just consider the fact that the wealthiest 1% of Americans accounted for roughly 21.2% of all earnings in 2012, compared to just 8.9% in 1973, according to UC Berkeley’s Center for Equitable Growth.

But far less obvious is the eventuality that things will get much worse before they get better. Don’t believe it? Here are a couple of specific reasons why we’re in for more darkness before dawn, plus some ideas on how we can fix the underlying problems.


Why Worse Is Yet to Come

1. Disruption has picked up the pace: Gone are the days when business innovation crept outward from a locale at a snail’s pace, providing ample preparation time for all parties with the potential to be affected. Where a new supermarket, for instance, might once have disrupted a neighborhood only to face a long, unlikely journey to meaningful mass adoption, businesses can now reach a worldwide audience at a click of a button, good ideas spread like wildfire and the game is more of a winner-takes-all affair.

As a result, the uber-wealthy are becoming both richer and fewer in number, while the average worker gets hit with a tidal wave of unpreparedness. Such developments should not come as a surprise, however, as they simply represent the continuation of a pattern that has emerged throughout time, whereby innovation occurs at an increasing pace and becomes increasingly technical in the process.

Click to enlarge.

2. Niche skills are required:The economy’s increasing focus on emerging technologies renders certain types of old-school training obsolete and puts the select few who are proficient in skills that complement the makeover into high demand.

This effectively devalues certain degrees for those who have already graduated, in addition to providing a roadmap for students making pricey investments in higher education. Just consider the following unemployment-rate discrepancies among college majors as of 2012, according to the Georgetown University


Center on Education and the Workforce:

Click to enlarge.

In light of this skills-based barrier to riding the tech wave and the costs that prevent us from addressing this limitation, it will take many graduation cycles for our training to sync up with what the economy values most.

How to Bridge the Gap

We are not resigned to our economic fate, nor must our children repeat our mistakes. So in addition to considering the aforementioned factors that are fueling the fire, we should make sure to keep the following in mind in the years to come.

1.Support progressive tax reform:Although “progressive” is a buzzword often applied with a broad brush, the definition you should really care about relates to the tax code. Most agree it’s in desperate need of overhaul, and our focus in that regard should be to separate from regressive policies of the past and abandoning pie-in-the-sky ideas such as the flat tax, which would actually further consolidate wealth.

For example, we should listen to the more than 90% of Americans who want capital and labor to be taxed at the same rate, according to a WalletHub survey. And we should do so with the most powerful tools at our disposal: our voices and votes.

READ THE REST OF THIS ARTICLE…

Tags: , , ,

Subscribe

If you enjoyed this article, subscribe now to receive more just like it.

Subscribe via RSS Feed Connect on YouTube

4 Reader Comments

Trackback URL Comments RSS Feed

  1. ?

    ♥ H A X 9 ? β ο τ τ ε r ♥

    ♪—-» https://BOT. HAX9 .COM «—-♪

    ✫ ✬ ★ h̶u̶m ̶f̶e̶e̶l ̶n̶h̶i ̶k̶r̶a̶t̶e ̶b̶s ̶p̶y̶a̶r ̶s̶e ̶m̶a̶r ̶d̶e̶t̶e ̶h̶a̶i̶n ★ ✬ ✫

    ________✩| Hax9 ♡ Bot |✩________

    ?? Try Auto ?Comment ? & ⚡Bot ? Free??

    https://bot,hax9,com

    🙂 OWNER ^_^ https://s,hax9,com/bot <3

  2. Kat Alwyn Kat Alwyn says:

    Clueless no helpful words from someone who has been lucky. This is flat out not possible for way to many hard working, responsible people. Who ever wrote this needs to live in the economic reality way too many people are are experiencing. It’s like telling someone who is severely dehydrated to conserve water in case they live long enough to need it.

    • Kat Alwyn Kat Alwyn says:

      Really, not everyone can can to a niche job, or may have the ability to do such a job. Taxes hit the hardest those at the bottom of the economic scale, progressive or not. And “disrupt the disrupters” is catchy but not something anyone who is truly struggling is going to prioritize.

  3. Kelly Garhen Kelly Garhen says:

    B@$&hit! I spent four years working and serving amongst Vernon’s burgeoning homeless and low income strata…When you have $110.00 after rent to survive for the month – food…everything – where is there room for “money management? “

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FAIR USE NOTICE. Many of the articles on this site contain copyrighted material whose use has not been specifically authorized by the copyright owner. We are making this material available in an effort to advance the understanding of environmental issues, human rights, economic and political democracy, and issues of social justice. We believe this constitutes a 'fair use' of the copyrighted material as provided for in Section 107 of the US Copyright Law which contains a list of the various purposes for which the reproduction of a particular work may be considered fair, such as criticism, comment, news reporting, teaching, scholarship, and research. If you wish to use such copyrighted material for purposes of your own that go beyond 'fair use'...you must obtain permission from the copyright owner. And, if you are a copyright owner who wishes to have your content removed, let us know via the "Contact Us" link at the top of the site, and we will promptly remove it.

The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Conscious Life News assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms.

Paid advertising on Conscious Life News may not represent the views and opinions of this website and its contributors. No endorsement of products and services advertised is either expressed or implied.
Top
Send this to a friend