Inequality In US Income Is Increasing At A Faster Rate

Business

When it comes to America, everyone thinks about getting rich and living their life lavishly. However, that’s not true at some point because the middle class and poor people have to suffer from lots of things in here. A new report released by the US Census Bureau shows that the country is facing a problem of the enormous gap between rich and poor. The federal report says that income inequality was higher in 2018 than in 2017 and it’s happening from last many years.

Not all states witnessed an income inequality problem, but few are suffering from these economic problems. Nine states in which the income gap between rich and poor increasing are Alabama, Arkansas, California, Kansas, Nebraska, New Hampshire, New Mexico, Texas, and Virginia. The income gap has increased even after achieving a reasonable GDP rate and a low percentage of unemployment from the last ten years. Now some experts are stating that this report shows the failure of current economic policies which can’t solve issues of income disparity.

One of the key reasons behind such a massive gap in between income of people is the decline of organized labor and the increase of foreign workers. Foreigners are continuously enjoying the country’s employment hence getting more perks than ordinary people. On the other hand, local laborers unions are not getting that much organized, which is on a critical issue for people. Government is giving lots of tax exemptions to rich people which is creating such sort of income gap. The Gini index measures income inequality, and that index was moved from 0.482 in 2017 to 0.485 in 2018. However, another critical problem which is causing the income gap to get spread is the median income of Americans has gotten small.

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