Separation of Income and the Cost of Living

 

          Throughout the last twenty years, the separation between the rich and poor has grown significantly.  The growth can be attributed to lower wages for the underprivileged and an increase in wages for the wealthy.  (1)  As a result, the rich will grow richer, and the poor will be poorer.   Within the last ten years, economic growth has been attributed to the wealthy five percent of families throughout the United States.  Income losses for lower-class citizens have resulted in an increase in poverty by nearly five percent between 1974 and 1993.  (2)  Although the United States has made an effort to create more jobs, the increasing class separation and low wages has prevented improvement.  By giving America’s lower-class citizens “a raise,” the result will be a “substantial income redistribution” from those who have succeeded and profited over the last two decades.
           Since the cost of living has increased while the minimum wage has not, more individuals are becoming closer to the line of poverty.  As a result, the income of the working class must be raised.  Citizens of Cincinnati will have a greater chance to succeed and prosper if Ohio and Cincinnati tax policies can be created to instill progressive tax cuts or relief for the lower economic classes.  As a result, citizens will be able to live in a society where the cost of living is within their grasp.  In addition, more workers unions should be created to “bargain with employers over pay.”  (3)  Through a “collective action by workers,” the employer or private sector will be prevented from “responding to inequality and falling wages.”  (4)  Although unions are not always successful, it offers a greater chance to workers to join together for their own benefit.
           The raise given to lower class citizens must initiate in our state and federal governments.  Within our federal government, we must raise the minimum wage and create legislation that requires every state to follow this guideline.  In the state of Ohio, the minimum wage is significantly lower than the federal minimum wage.  By first raising the federal minimum wage followed by the state minimum wages to meet this criteria, the income of lower-class citizens will also be raised.  As a result, they will be able to pay for basic necessities for their families, in addition to paying for things such as school supplies and books for their children.  This also increases the chance of Cincinnati public school levies passing, since there is more money being delivered into the citizen's pockets.  Small business owners argue that raising minimum wage will run them out of business; however, it should be considered that by raising minimum wage, then lower-class citizens will have a possibility of having a small disposable income, which could be used in their stores.  

1.)  Freeman 3
2.)  Freeman 7
3.)  Freeman 24
4.)  Freeman 25
 

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