Length:  4 pages (1608 words) | Sources:  2  | Citation Style:  MLA | Subject:  Business  (general) | Type: Term Paper | Paper: #58855630 | Author:  

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...? (Larden and Collins, 2007)

Unemployment rates

The unemployment rate is also another important factor which affects income inequality and the desire is to maintain a low level of unemployment. "When the unemployment rate is too high, the fruits of economic growth tend to be distributed much less evenly throughout the workforce and tend to be distributed upward....? (Bernstein, 2003)

Trade policies

Market liberalization brought to America similar products but at lower prices which only emphasized the uneven distribution of income. US factories were forced to reduce their prices (and consequently the personnel expenditures), therefore widening the income gap. Government policies to make the US currency a strong one on the international market only increased the prices of the national products, leading to uncompetitive prices within international trades. (Bernstein, 2003)

Shift from manufacturing to services

Directly linked to trade policies and globalization, manufacturing facilities in US began to be closed down. In exchange, services occupied a large portion of working activities. The service sector "includes professional people earning lots of money and people earning very little, so it is a sector that inherently has more inequality built into it. If the economy grows and there's more employment in that sector and less employment in a sector where blue collar workers were making relatively high wages, you're definitely going to have more inequality....? (Bernstein, 2003)

Black and white

However the American nation is not proud of it, nor does it openly admit it, income inequality is quite strong between white and black workers. The difference has always been present and the attempts to eliminate it have yet to retrieve the desired results. The only thing achieved was a reduction of the gap, but even this present reduction is quite insignificant and extremely close to the gap of thirty years ago. "For every dollar of per capita income among white Americans, the average African-American had made about 55 cents in 1968; more than thirty years later, it was 57 cents! At that rate, it would take another 581 years to achieve income equality....? (Larden and Collins, 2007)


The role education plays…[continue]

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"Entrepreneurship" (2007, December 10) Retrieved March 27, 2015, from http://www.paperdue.com/essay/entrepreneurship-33443

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