Reference no: EM133265081
According to Volti (Chapter 10):
The income differential that separates professional practitioners from most other workers is only one aspect of a larger phenomenon: the large and growing income gap that separates a relatively small number of income earners from the rest of the working population. This situation can be demonstrated by dividing households into quintiles (i.e., the bottom 20 percent, the next 20 percent, and so on) and noting the share of income that goes to each quintile. An analysis of this sort shows substantial inequality in the distribution of income in the United States. In 2009, only 3.4 percent of the nation's income went to the bottom quintile of American households. Families in the second, third, and fourth quintiles received 8.6, 14.6, and 23.2 percent, respectively, while those in the top quintile took in 50.3 percent of the nation's income. Translated into dollars, this means that in 2009, the mean household income for the bottom quintile was $11,552, while the equivalent figures for the second, third, and fourth quintiles were $29,257, $49,534, and $78,694, respectively. The mean household income for the top quintile came in at $170,844.
The gap between the incomes of the top quintile and those of everyone else has grown with few interruptions over the past three decades. In 1975, the top 20 percent of American households accounted for 43.6 percent of the nation's income. By 1985, the figure was 45.6 percent, and in 2009, as just noted, it had climbed to 50.3 percent. During this period, the share of household income going to all but the top quintile declined or stayed the same, while the portion accrued by the top 5 percent of families increased almost without interruption from 16.5 percent in 1975 to 21.7 percent in 2009.
In this week's Discussion forum, there are two (2) components.
- The first component of this week's assignment is to create the pie chart which represents the income gap as summarized in the data in the first paragraph from 2009. For an extra credit point, create three (3) pie charts which show the income gap in 2009 plus the income gap in 1975 and 1985. Attach this in a document or cut/paste a screen shot of your pie chart directly into your Blackboard posting. Here is a link to show you what a pie-chart is and how to create it. (You needn't be as fancy in your pie-chart as is possible with all the features covered in the video...just the basics)
- The second component of this week's assignment is to reflect on the data in the pie charts and respond to the following questions:
- Summarize what the pie chart/s tell us about income inequality in the U.S.?
- Discuss a few of the factors that explain why income inequality exists and persists.
- To what extent do you believe that unequal incomes reflect greater contributions of high-income earners? In other words, based on effort, sacrifice, and benefit to society, do people earn what they deserve? Why? Why not?