Answer:
In the United States, income inequality describes the disproportionate wealth of different households and individuals. Since the 1970s, income inequality in the United States has worsened, even though it has been a problem for decades. More than 20% of all income in the United States is currently earned by the top 1%, and over 50% is earned by the top 10%. (Denavas-Walt, Proctor, & Smith, 2014). Just a few decades ago, the top 1% earned roughly 10% of the entire income, while the top 10% earned roughly 33%. (Denavas-Walt et al., 2014).
Education is a major factor in this. In the United States, the difference between the wealthy and the poor is frequently used as a proxy for overall income inequality. Education levels are one of the main causes of this disparity. The gap between the rich and poor grows wider because those with more education are more likely to find better-paying jobs. The earnings of various categories of workers can be used as a proxy for the effect of education on income inequality. In 2016, for instance, a worker's earnings were around double for those with a bachelor's degree compared to those with a high school diploma. The chasm between them has been widening for decades. Earnings for people with a bachelor's degree were around 1.5 times higher than those for those with only a high school diploma in 1979.
Income inequality in the United States is largely attributable to the fact that the wealthy have more opportunities and resources available to them. It is estimated that the richest 1% of earners in the United States take home over 20% of all income, while the lowest 50% make less than 13%. The rich have more capital to invest, and as a result, they can generate more returns on their money than the poor. One of the main reasons the rich get richer, and the poor get poorer is because of this. How the tax system is set up is also a contributing factor to economic disparity in the United States. Because of tax loopholes and deductions, the wealthy have a lower effective tax rate than the poor. With more capital at their disposal, individuals are better able to invest and expand their fortunes, thus contributing to the problem.
Discrimination is a further factor. Discrimination against women and minorities is largely to blame for the widening gap in incomes in the United States. On average, women make barely 80% as much as men do, and minorities considerably less. This is largely attributable to wage discrimination, which results in women and people of color being paid significantly less than white men for equivalent work. Income inequality in the United States is exacerbated by the fact that discrimination keeps women and minorities from earning as much as males do. Income disparity in the United States is exacerbated by sex and racial discrimination for a number of reasons. It's important to note that, first, women and people of color are generally paid less than white men for equivalent labor. This implies they will have a harder time making ends meet, increasing the likelihood that they will be living in poverty. To make matters worse, women and people of color are more likely than men to be turned down for well-paying entry-level jobs. This is because they have to go through more trouble to get a job and are less likely to be offered good pay.
Capability is another factor. Differences in earnings between very successful actors or athletes and those who are not can be attributed to a variety of variables. One possible explanation is that the highest-paid professionals in these fields are the most well-known and experienced ones. As a result, people who possess the requisite abilities or talent may find themselves competing for a smaller pool of available jobs, which in turn may result in greater compensation for those who are successful in these fields. Lastly, the way the industry is set up may keep the income gap going, since a small number of people get most of the money made by the industry.
The income gap in the United States is attributed to monopoly power, which allows some groups of workers to demand higher wages due to a shortage of workers. Due to a severe shortage of competent individuals, medical professionals frequently enjoy monopoly power. It's because of this that they're able to increase their salary demands, which in turn exacerbates economic disparities. While not the sole cause of the economic gap in the United States, monopolistic power is undoubtedly a key contributor. Globalization, the loss of authority of unions, and more competition from developing countries are also factors.
Step-by-step explanation:
This is my take on the story, so feel free to alter it to fit your own perspective. Do not just copy and paste as teachers are smart. :)