U.S. Income gap widest since 1928

“U.S. Income gap is widest since 1928”

– Austin American Statesman (B7), 9-11-13 

 

 

 

2.      Category: Economy

3.      Level: National

4.      Article is concerning an issues that both individuals and families face.

5.      This is important to individuals and families because it affects everyone’s on socio-economic status within this nation. Each person’s lives and benefits are decided primarily on their income and it is important that they know where they are within the spectrum.

6.      It is so ironic that this article came out the week after we watched the documentary about this same exact topic (Park Avenue: Money, Power, and the American Dream). Before watching the Park Avenue film, I was completely oblivious to the fact that a mere 400 people control more wealth than the bottom 50 percent of the population. I knew that the wealthier of the US citizens had a hand in how our government was being run, but not to this extent. The saying remains true: the rich are getting richer and the poor are getting poorer, but where does that put us, the middle class? To know that this is the widest gap that the U.S. income has since 1928 is a little astonishing, though. It is noted in the article, that the richest Americans were hurt the worst by the 2007-2009 recession. I honestly don’t feel any remorse for them. While a number of Americans suddenly fell under the poverty line because of the recession, these same wealthy people who were “affected the most” by the recession probably didn’t change their way of living (just the stocks they decided to invest in next). So why was the income gap narrower after the Great Depression and World War II? The article addresses this directly. Unions had negotiated better pay in addition to the government setting policies and enacting minimum wage. Makes perfect sense considering the lack of jobs available now. It seems that not only has low-wage labor and the lack of union power been a major cause but also the influential role that technology has played. As technology continues to advance, many jobs are becoming obsolete. Why pay a person minimum wage to do the same job a metal machine can do in half the time? Ms. Stone asked us after watching the Park Ave. documentary what we could do as American Citizens to help alleviate this economic problem. My answer: I do not have a clue! Like the “poor kid” playing monopoly, I honestly feel helpless.