2007-11-14 21:53:07 · 3 answers · asked by Anonymous in Social Science ➔ Economics
The stagnation of wages is the result of increasing trade with cheap labor countries, and increasing supply of labor in the US as a result of women entering the work force and immigration. At the same time globalization has created opportunities for successful super stars to earn very high incomes and corporations to become very profitable. We are now at inequality level that existed in the era of the robber Barron's, and if it continues it will eventually provoke a political turn to the left and the creation of a social welfare state.
2007-11-14 22:23:47 · answer #1 · answered by meg 7 · 0⤊ 0⤋
Personally i think it has to do with the school systems not teaching kids how to better function in society. Kids of wealther parents tend to have more money because their parents teach them about their success. The poor aren't taught how to spend their money different and other tricks that can help them become more financially stable. So unless they work extra hard to break the cycle they end up were their parents where. Schools should be teaching more of these tricks to kids so that they can help thenselves before its to late for them too.
2007-11-14 22:06:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
More people are switching into upper income catagories. And the poor are procreating.
2007-11-14 21:57:25 · answer #3 · answered by flesh 3 · 0⤊ 1⤋