Monday, May 1, 2017

What Can be Done with Economic Disparity

Corey Davis
Ms. Lisa Crumit-Hancock
ENGL-125 H- Composition 1
3 May 2017
Rogerian Argument
Economic Disparity in Communities
After viewing and assessing several different forms of community in ENGL 125-H over the course of the spring semester, a common theme of unhealthy communities exists in any community has become clear. Unhealthy communities tend to add up quickly and are complex in nature. However, one cause that plays a direct effect on unhealthy communities is economic disparity. This phrase is sparingly used in day to day conversation. With this said, many individuals ask, "What does this phrase mean, why is this term important, and how is it evident in the world we live in?". Economic disparity is also expressed as income inequality or wealth gap. Throughout, this article each phrase will be used interchangeably.
This gap plays a direct role in the upbringing of many unhealthy communities since money makes the world go around. What is meant by this is a community’s worth/growth is relatable to its economic health. In addition, this inequality has led to an altercation between two groups in our society. One of these groups has been coined “the one percent,” while the other group is called “the 99 percent”.  These groups have often been at one another’s throats over income gap. In Ellen Waldman’s article, "Inequality in America and Spillover Effects on Mediation Practice: Disputing for the 1 Per Cent and the 99 Per Cent", she discusses how the rich and poor have different methods to solving economic disputes/case. In her conclusion she founded,
“In 1926, F Scott Fitzgerald wrote that the rich are ‘different from you and me’. The observation still holds. Both on subjective and objective measures, the upper class experience life differently than do middle class or lower class earners. This divergence continues when rich and poor enter into mediation.” (42)
With this difference, both groups have their own perspectives when it comes to what needs to be done about wealth inequality. The members of “the one percent” may see no harm in the inequality that has occurred in the world we live in them, while other members may see the harm with the issue. In contrast, the members of “the 99 percent” have a vastly different opinion wealth inequality. This group sees inequality as an unfair just in the world and see that this gap is becoming greater. “The 99 percent” is correct in stating this, Ellen Waldman’s research found, “Today, seven out of 10 people live in countries where inequality today is greater that it was 30 years ago.” (26) Overall, this issue affects both groups by altering how the world operates on a daily basis. Two examples of how economic inequality can affect how the world operates is with its economic growth and social relationship between countries. These two concepts can impact both the poor and rich’s lives.
Both the rich and the poor have a varied approach on what they believe are solutions to the income gap. Some from each group believe the answer to income inequality is the acquired level of education. The supporters of acquiring higher education to reverse the income gap often cite the increased income of those who have higher education in comparison to their lower educated peers, this viewpoint has some statistics in their corner. Mr. Kenworthy founded that,
“Explanations of rising income inequality often begin with education. In The Race between Education and Technology, Claudia Goldin and Lawrence Katz describe how educational attainment in the United States increased steadily from the late 1800s through the 1960s. But then the pace of advance slowed, and as it did, the ‘‘college pay premium’’—the ratio of the earnings of persons with a four-year college degree to the earnings of those without—began to rise.” (“Why the Surge...” 2)
Lane Kenworthy’s research into education showed that this group has a viable solution.  Others see the solution with the problem lays in with how tax protocol is established. Some say lower taxes for all, some say lower taxes for the poor/higher taxes for the rich, and some say higher taxes for all can help. Typically, poor and the rich both cite this solution since most individuals often see most of the money they acquire goes towards taxes. This group believes their income suffers from being taxed. There is a select few that have faith in raise taxes. This isolated group believes that the money collected in taxes, in the end, benefits everyone by use of the government provided services (country infrastructure, emergency responder, snow removal, etc.) This solution standpoint has some force behind it. Kenworthy’s research also found,
“In the United States, the top statutory federal income tax rate and the top 1 percent’s share of pretax income have indeed tended to move in opposite directions over time. In the 1920s the top tax rate decreased and the top 1 percent’s income share shot up. The top tax rate rose sharply between 1929 and 1945, and the top 1 percent’s income share fell sharply. From 1979 to 2007, the top tax rate decreased a good bit and the top 1 percent’s income share jumped. (“Why the Surge...” 7)
So, in theory, all of these possible solutions may be a valuable approach in some contexts.
A position that stands in align with the writer’s view point revolves around joint effort on two fronts. One involves addressing of forms of governmental policies while the other focuses on unions.  Governmental policy plays a huge role in how the economy works; this can include trade deals, mega governmental contracts, and a presidential economic plan. The same goes with income gap in many nations. Lane Kenworthy shreds some light on how the government can influence economic inequality,
“Where low-end incomes have increased, that typically has been a product of increases in net government transfers. Such increases are due to political choices, rather than to constraints or opportunities stemming from the share of income captured by those at the top… Still, it is noteworthy that some affluent countries have managed to engineer increasing incomes for low-end households despite a significant top-heavy rise in inequality. For American policymakers, that might serve as welcome inspiration.” (Rising Inequality... 108)
The other front revolves around the approach of how individuals use and see unions. Unions play an important method in how income gap can occur and increase. Additionally, unions have a direct impact on income levels for many. Labor unions that are often united can force employers to allocate more money into the workers’ benefits (insurance or wages). Any union can prevent/limit the influence left by the competitiveness of the work force with immigrants and technological innovations. However, individual's see labor unions as a place where they pay dues or fees to be apart of, and see no benefit in them. Lane Kenworthy demonstrates union effectiveness by showing the correlation between income inequality and unions,
“Cross-county comparison suggests that union strength has mattered for income inequality. The contrast between the United States and Canada is illustrative. Canada’s unionization rate has remained fairly constant over the past generation, and the top 1 percent’s income share in Canada has risen only half as much as in the U.S.” (“Why the Surge...” 7)
          The implications on any unhealthy community of finding and reversing the effects of economic disparity is a complicated and necessary process, however achieving this can be completed by a joint approach of altered governmental action and strengthened unions. With this said, this approach is quite similar to the position others have. The separate position of altering taxes and considering the importance of education for reverse and lessening the income gap between the rich and poor. These two situations are intertwined with governmental decision making. Taxes and post-secondary education financial aid are influence by federal governmental offices. Therefore, adoption of the position revolving around addressing government policy and altering how unions are used and viewed.