Title: Income Inequality Definition, Facts, and History of Income Inequality in the US - 2021 - MasterClass
Headings: Income Inequality Definition, Facts, and History of Income Inequality in the US
Income Inequality Definition, Facts, and History of Income Inequality in the US
What Is Income Inequality?
What Is the Difference Between Income Inequality and Wealth Inequality?
7 Factors That Lead to Income Inequality
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7 Factors That Lead to Income Inequality
Income disparity is driven by a number of economic, structural, and demographic forces. Economists are still working to figure out exactly why inequality rose in over the last half century. That said, seven primary factors that contribute to income inequality are: Tax policy: One of the most important variables is a country’s tax policy, with tax structures that raise economic growth in the short-term while supporting increased government revenue in the long-term connected to the lowest instances of income inequality. Unemployment: Unemployment is a major variable which greatly increases the likelihood of income inequality, as does lower overall participation of the labor force. Some economists also argue that inequality actually stems from the rise in housing prices and the inability of workers to afford to move to cities with high job growth. Globalization: In recent decades, corporations in the United States have steadily increased their outsourcing of jobs overseas as a means of reducing bottom-line costs, in turn eliminating jobs for working- and middle-class Americans.