The income gap between the richest and the poorest in the United States has been a long-standing issue. The income gap refers to the difference in income between the highest and lowest earners in society. According to the Pew Research Center, in 2018, the median income for households in the top 20% was $188,000, while the median income for households in the bottom 20% was $25,624. This means that the highest earners in society earn nearly eight times more than the lowest earners. The income gap has been growing in the United States since the 1970s, and there are several possible causes for this trend.
One possible cause of the income gap is the decline in union membership. Unions advocate for better wages and working conditions for their members, which can help to reduce income inequality. However, union membership has been declining in the United States for several decades. According to the Bureau of Labor Statistics, in 1983, 20.1% of wage and salary workers were members of a union, compared to just 10.8% in 2020. This decline in union membership has contributed to the rise in income inequality.
Another possible cause of the income gap is globalization. Globalization has led to increased competition for jobs, which has put downward pressure on wages for low-skilled workers. At the same time, globalization has increased demand for highly skilled workers, which has driven up wages for those workers. This has contributed to the growing income gap between high- and low-skilled workers.
To address the income gap in the United States, there are several possible policy solutions. One solution is to increase the minimum wage. According to the Economic Policy Institute, raising the federal minimum wage to $15 per hour by 2025 would lift wages for 32 million workers, or about 21% of the workforce. This would help to reduce income inequality by raising the wages of the lowest earners in society.
Another solution is to increase access to education and training programs. This would help to reduce the income gap by increasing the skills and earning potential of low-skilled workers. Additionally, policies that promote union membership, such as the Protecting the Right to Organize (PRO) Act, could help to reduce the income gap by advocating for better wages and working conditions for workers.
In conclusion, the income gap between the richest and poorest in the United States is a complex issue with several possible causes. The decline in union membership and globalization are two factors that have contributed to the income gap. To address this issue