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Business and Finance

The Salary gap between Rich and Poor in USA Essay

America is a developed country and this growth in its productivity has increased drastically after 1995. The income of workers has increased by 30% per hour as compared to the decade before (The Economist, N.p). There are multiple reasons behind an increase in unequal income rates in the United States. The main reason is the top management making ten times more money as compared to the front line workers. Another reason includes the people who inherit money from generations and accumulate it in one single household. This has shaped the economic setup in a way that the rich remain rich while the poor are becoming poorer. This is also because the political system has shifted its focus from redistribution of income to largely economic growth.
Yes, the extreme inequality of income is unjust in many respects. Though it is true that inequality will always remain however measures should be taken to minimize this gap especially in the US which is a capitalist country. This is essentially needed when the corporations are paying less to their front line employees (Osberg and Smeeding). This is also not ethical because the pay structure should be based on the personal performance of an employee. Basing this on the position in the company will increase the gap in income redistribution. Fair ways should be used to measure the individual employee performance. This can help in making people work hard to decrease unequal distribution of income in the US.
Works Cited

“The Rich, The Poor And The Growing Gap Between Them.” The Economist. N. p., 2006. Web. 13 Mar. 2018.

Osberg, Lars and Timothy Smeeding. “Fair” Inequality? Attitudes toward Pay Differentials: The United States in Comparative Perspective.” American Sociological Review 71.3 (2006).



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