Why has Income Inequality been rising since the 1970’s?

 David H. has analyzed a number of possible reasons that may have an effect on the distribution of income among the citizens in the United States.  Among them includes the skills premium, the drastic decline in the real value of wages, little opportunities for the unlearned citizens and the steep and instant rise of international competition from the developing countries. The difference is also contributed by the decline of the bargaining power of the American markets as well as difference in skills and education levels (David, 2014).

Among all these factors, difference and level of skills is the actual factor that is contributing to the rising inequality of income distribution. The workers earning is directly proportional to the level of education which of course determined the level of skills on has. College graduates are more productive than high school leavers since they have the required capabilities and concrete skills that are required in the competitive job market. In addition, the ever evolving technology advancements requires trained and skilled workforce which most of the poor citizens lack (David, 2014).

 In this context of argument, the second preposition rhymes with the David’s analysis. Making of tax, education-based and the minimum wages policies is in the hands of the government. When the public schools for the common citizens are not offering required skills that fit the job market, the rich are capable of taking their students to better institutions while the poor will not manage. The rich will get employed as a result while the poor and unlearned will remain at “home”. In conclusion, the policies concerning the education sector carry the heaviest weigh as much as other factors are considered in bridging the gap between the rich and the poor in the United States income wise.  

Reference

David H. A., (2014). Skills, Education, and the rise of Earnings Inequality among the “other 99 percent” Science 344, 843