Distribution of Income and Poverty

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Distribution of Income and Poverty

Introduction

           There is an uneven distribution of both income and poverty within the United States of America. Some regions have individuals who earn a better income, while others tend to have people who earn a low income. On the other hand, some areas can be characterized by poverty. Some ethnic groups within the United States of America are usually considered poor, while others are regarded as having financially stable individuals. Income levels in recent years have significantly increased within the US. There are various causes of both increased income and poverty.

           In recent years, the United States of America has had a significant increase in various people’s income levels. In 2008, there was a financial crisis within the US. The government and various organizations have been working smart to restore the loss that was incurred during 2008. This resulted in a scenario whereby the wealthy individuals improved their state with time and became richer. One of the significant factors that have made the rich more prosperous is the fact that they invested in the right industries (Amadeo, 2018). Since 1993, there has been a significant improvement in the family income, which was recorded as 25%. The income level within the United States of America has been changing recently because of various factors.

Causes of Poverty and Reduction of Income   

           One of the significant causes of income imbalance within the United States of America is cheap labor availability, which comes from China (Amadeo, 2018). There are other ideas, such as job outsourcing. Companies that utilize cheap Chinese labor and those that originate from India tend to offer competition to industries using American labor for several decades.    

           Individuals who are educated up to the college level earn better wages than those who never made it past high school. Uneducated individuals are some of the individuals who have been held responsible for improving the United States of America (Amadeo, 2018). This is because there are multiple job opportunities which are available for individuals who have college degrees. Educated individuals also specialize in particular fields compared to individuals who never made it past high school. Uneducated individuals tend to have a limited range of job opportunities.

           One of the primary characteristics of this modern era is the availability of technology that can solve almost every problem that has been presented to man. This means that several individuals lost their jobs with the introduction of machines and technological advancements, leading to an imbalance within various individuals’ income levels (Amadeo, 2018). There are several disputes which occur within precise organizations that offer job opportunities to individuals. Some organizations barely solve those problems using the appropriate method, thus leading to an imbalance in income.

           In recent years, the United States of America has had a significant population increase, thus leading to poverty (Miller, 2018). An increase in population also led to unemployment. The jobs that exist tend to favor precise individuals, such as the ones who are college graduates. The other group of individuals sometimes opt for the option of crime within their areas.

           Ten percent of the individuals within the United States of America are disabled. This means that they cannot perform specific tasks with ease like ordinary people. Several categories of disabled people range from difficulty in walking up to mental retardation, amongst others (Miller, 2018). Such individuals bare compete within the education system and job opportunities within their regions. Individuals who have jobs that they use as a source of income tend to earn low wages since they are not competitive as ordinary citizens.

Distribution of Income and Poverty

White Americans have better income levels compared to other ethnic groups. Blacks, on the other hand, are the ones who are runners up when it comes to comparing the ethnic groups with better income within the United States of America (Wilson, 2020). Hispanic tend to be at the bottom of the list when it comes to income distribution.

           Regions within South America tend to be poor compared to North America. Several regions within the United States of America are considered poor compared to others. Selma, located in Alabama, tends to be the most impoverished region within the United States of America. The region has a 41% poverty rate (Comen, 2020). Ordinary households earn up to twenty-four thousand dollars yearly. This is an area that is inhabited by Blacks compared to White.

           Groton, which is located in Connecticut, is a region with a poverty rate of 13.7%. Ordinary people earn a total of $53,750. Connecticut itself has individuals who earn a better income, but the situation is different when it comes to Groton. A region such as New Castle, which is located in Delaware, is one of the poor areas within the United States of America (Comen, 2020). The poverty rate at New Castle is at 6.5%, and ordinary people earn up to $63,573.

Management of Distribution of Income and Poverty

           There are multiple ways in which high poverty rates can be managed and poor income to be improved. The government is supposed to create free colleges to learn necessary skills such as bridge and building repair (Thomas, 2018). The government is supposed to increase employment rates in various regions considered poor and offer all ethnic equal job opportunities. For the graduates who are graduates and lack jobs, the government is supposed to come up with appropriate intervention measures to employ the graduates.

           The minimum wage per person who works within the United States of America is supposed to be raised. This is because individuals have families that depend on them for everything, such as basic needs (Thomas, 2018). Some initiatives are in places such as cash assistance and food stamps, which Americans can benefit from with ease. The government is supposed to develop more initiative, which is essential to its citizens and other individuals within the United States of America.

           Childcare within the US is expensive. The government should invest in childcare because middle-class families cannot afford the existing appropriate child care. Ordinary families tend to struggle with early childhood education and thus opt for cheap childcare (Thomas, 2018). The same family also faces challenges when it comes to payment of taxes. The government is supposed to reduce the tax on individuals who come from a poor neighborhood.

Conclusion

           The distribution of poverty and income tend to affect various ethnic groups and regions within the United States of America. There are multiple causes of poverty, such as an increase in population amongst others. The government is supposed to create management measures that can curb poverty, such as creating more employment and increasing wages.

References

Amadeo, K. (2018, August 22). Income Inequality in America. The Balance; The Balance. https://www.thebalance.com/income-inequality-in-america-3306190

Comen, S. S. and E. (2020, June). Poverty rates: Some of poorest towns in the country are found across the southern US. USA TODAY. https://www.usatoday.com/story/money/2020/06/25/poverty-the-poorest-town-in-every-state/111979468/

Miller, R. (2018, October 28). What are the causes of poverty in America? The Independent | News Events Opinion More. https://suindependent.com/causes-poverty-america/

Thomas. (2018, October). Progress in fighting poverty in America has slowed despite recent economic recovery. USA TODAY; 24/7 Wall Street. https://www.usatoday.com/story/money/economy/2018/10/01/fighting-poverty-america-slowing-despite-recent-economic-recovery/1445296002/

Wilson, V. (2020). Racial disparities in income and poverty remain largely unchanged amid strong income growth in 2019. Economic Policy Institute. https://www.epi.org/blog/racial-disparities-in-income-and-poverty-remain-largely-unchanged-amid-strong-income-growth-in-2019/

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