United States labor market
According to the article, the typical man earns 42,261 dollars an increase of 2. 7% form the 1996 salary while the typical women earns 32,515 dollars which is a 7. 1% increase from the 1996 salary and the increase is due to inflation. The difference for the two is : 42,261- 32,515= 9,746 dollars.
It is clear from the calculations that those who have more are earning and doing better than those who are earning less in the economy. It is therefore clear that the government needs to implement policies which will ensure that the income and wealth distribution is fair and therefore close the gap by increasing the incomes of the poor and reducing that of the rich.
The government should not just stand back and let the market forces take course, this is because the number of the middle and the lower class is high and will continue being high and this will continue to impact negatively on the country’s economy. The higher class should not be favored as it shows that their incomes increase at a faster rate than that for the middle and lower class rather the increase should be adjusted and be equal for all.
Further more, it is not the fault of women that they do not have college degrees, this is because their pay off for the diploma has always been greater since the men were always the ones with the better blue collar jobs and this is the case even today, therefore their low salary due to lack of education is because their education is more expensive as they have less and therefore the wealth should be equally shared because if they were well paid from the start, their wages would also be greater and they would be more educated.
I do not think that the United States labor market will provide a greater prosperity for the entire population but the smaller segment for those in the upper class will still be the ones getting the fair share if the national income.
There is also a likelihood of raise in crime and more social unrest between different classes because as the wealth continues to be concentrated at those at the top, the middle class and lower class will continue increasing in number and their income will no longer be enough therefore being forced to turn to criminal acts and social unrest. The wealth will continue tickling up because if the Reagan administration ideas were put in place, things would be much better but this will not be the case any time soon.
The trend which is continuing now should be stopped, policies should be enacted and there should be introduction of universal health insurance and medicare, the wealth should not be concentrated at the top but should be distributed to all in equal portions regardless of education because the middle and low class have been having low salaries all along while the upper getting better salaries therefore they can always afford and therefore all should be given equal opportunities.
In conclusion, it is clear that the gap of the income between those with the college degree and those without is continuing to increase and also the women who have education are closing up the men. It is also clear that the growth in productivity taking place in U. S. is going to the few rich leaving the middle and lower class with little and therefore this means that the gap between the poor and the rich will continue to widen up and so will the economy go down as those in the lower gap are more.
Russel David, one pay gap shrinks, another grows, wall street journal, 2008.