Community Economic Development- Equality
Should income in America have a greater degree of equality compared to what we have at present?
Equality in the households and even individual income has been a topic of debate in the United States for the past decades. The disparity in individual income between the rich and the poor in the US has widened (Keany, 2014). Thus, income in American should have a greater degree of equality compared to what is available at present. Economic planner and developers need to initiate a program that can harmonize the incomes of all individuals across the United States. It should be the responsibility of the government to ensure that the income disparity between the rich and the poor is not as wider as it is presently.
There should be a more harmonized equality in income across the nation. There should be a balance between the incomes of the rich and poor, educated and uneducated so that the lives of both individuals can improve. The extent of income disparity should also increase among workers in blue and white collar occupations. Studies indicate that income is also varied based on the type of jobs that people are involved in and the quality of their education (Keany, 2014). Those who are involved in jobs that are much harder get less income compared to those in less involving occupations.
What are the advantages and disadvantages of greater equality?
Harmonized equality in income will enhance economic development in the United States. Economic development in the country will grow depending on the amount of incomes that the individuals earn and the taxes that they pay (Bernasek, 2006). Therefore, increased equality income will increase the amount of taxes collected by the state. Besides, it will also lead to enhanced living standards of the people. As a result of this also, people will be able to generate more income compared to what they are earning currently. An increase in income equality will also create more jobs to cater for the jobless.
Job creation for the unemployed in the country also has its merits. For instance, crime rates will go down in the United States since such individuals will acquire legitimate means of earning a living ((Bernasek, 2006). This will also ensure a reduction in the number of homeless people across the country. For income equality to be achieved effectively, the employers in the private sector should also harmonize the salaries of their workers.
How can we achieve greater income equality?
Greater income equality can be attained when the government creates avenues for economic development (Alexander, 2013). There are supposed to be laws in place that can push all employers to increase the remuneration for all their employees. Workers should be paid based on the amount of work that they do. The incomes and degree of ease or hardness of the work should match the remuneration package. Besides, the government also needs to cut down the taxes on certain services that are mostly used by the citizens. Reducing taxes will reflect less pending and ultimately improvement in living conditions.
The employers in the private sector must also have in place, policies that regulate the salaries awarded to workers to ensure proper incomes. Besides, they also need to harmonize and narrow down the wider gaps between educated workers and those with basic education. For this to be ensured, the government should have laws that enhance the operations of such organizations (Alexander, 2013). For instance, the payment that they remit to the government should be lower so that they can be profitable and ensure better payment for their employees.
Alexander, T. (2013). Strategies for greater income equality – it works. Retrieved from visar.csustan.edu/aaba/Alexander2013.doc
Bernasek, A. (2006). Income inequality ans its cost. Retrieved from http://www.nytimes.com/2006/06/25/business/yourmoney/25view.html?_r=0
Keany, M. (2014). Income inequality in the United States. Retrieved from http://www.brookings.edu/research/testimony/2014/01/16-income-inequality-in-the-united-states-kearney