Title: Income Inequality in America - Definition, Causes & Statistics
Headings: Income Inequality in America – Definition, Causes & Statistics
Income Inequality in America – Definition, Causes & Statistics
The Great Divergence
A Belief in Fairness and Justice
Causes of Inequality
1. Technology
2. Globalization
3. Government Policy
4. Polarization and Political Dysfunction
Possible Actions to Reduce Income Disparity
Final Word

Content: By 2010, retailers such as Walmart, Target, and Kroger had replaced the manufacturing firms as employment leaders – Walmart alone employs as many Americans as the largest 20 manufacturers combined. The percentage of American workers engaged in manufacturing peaked in the mid-1940s and has steadily declined, while service industry employment has exploded. At the same time, there has been a consistent attack upon union membership, a major force for protecting and raising workers’ wages. This shift dramatically lowered personal incomes of workers and reduced employee tenure. According to a study by the University of Michigan Ross School of Business, the median average hourly wage for vehicle manufacturing in May 2008 was $27.14, while the median hourly wage for a retail position was $9.33. In short, more people are making less money. Percentage of U.S. Labor Force Employed in Manufacturing & Services, 1938-2008, Source: Ross School of Business
2. Globalization
Technology also spurred the export of jobs to other countries, as trade barriers dropped and the world became a general marketplace. The growth of multinational corporations with allegiance to no particular government and their transfer of intangible assets such as business knowledge, management practices, and training has resulted in hundreds of thousands of jobs moving from America to workers in lower-cost countries.