Income Inequality
Storyboard Text
- Hello! Today you will learn about what Income Inequality is, and how it has affected the livelihoods of many individuals.
- So what is Income Inequality? To understand that, we need to travel back to the late 1800s to witness one of the earliest and most extreme cases of Income Inequality in U.S history: The Gilded Age
- But in reality, much of the working class could barely get by with their current income
- Angry workers formed labor union groups to advocate for better wages
- Let's Dive in!
- The Gilded Ages was a time of great prosperity for the American Tycoons
- "golden on the outside, but rotten on the inside"
- "We have always known that heedless self interest was bad morals, we now know that it is bad economics."
- Samuel Gompers fought on the side of American workers by leading the American Federation of Labor union group. He fought to increase wages and working conditions.
- As the gilded age came to a close, the incomes of working families started to increase. New inventions and technologies became available for people to enjoy. Higher paying jobs were created to meet the consumer demand. The average American was investing in stocks and enjoying their newfound economic prosperity.
- Then all of a sudden, in 1939, the New York Stock exchange collapsed. People immediately rushed to their banks to withdraw money, but all their savings were gone.This horririfc time was called the Great Depression.
- America's economic instability ripples to other countries, causing political turmoil...
- So what is causing this sudden rise in income inequality? And are people affected by it?
- WW2 begins, and the Americans start mobilizing for war. Women join armed forces, and others work in well-paying defense jobs.
- Trump's Tax cuts let me pay less taxes than my employees! This president really cares about his fellow billionaires.
- FDR passes progressive taxations (increased taxes based on income), enforces stronger unions, and reduces after-tax income on top earners.
- I cant believe I'm getting a promotion!
- I just couldn't keep up...
- The strict laws stop the rich from expanding while allowing the middle and low-income classes to grow. Since the Gilded age, income inequality has slowly decreased, but this has not been true for the last three decades...
- I almost got into a bad accident today trying to fix the crane. We NEED increased wage.
- Economists say that we are heading for a Gilded Age 2.0. Just look at this graph!
- My job was just given to someone in Asia. They were willing to sew the cotton kits for only $3. Who will hire me anymore?
- The Rich Vs. The Super Rich...Yes, Income Inequality exists at this level too.
- I earn 70k annually
- Even though I have the same skills as my partner, Jeff here, I only make 56k annually.
- listen to 5 individuals explain how income inequality has been affecting them in the 21st century
- The rich can benefit from tax loopholes: Just like Sam, others have taken advantage of the law's measures to wipe out their tax liabilities. Some billionaires have even set up offshore accounts to hide their money and pay less in income taxes.
- Skill-Based Technology Skills: Kathy has the education and skills needed to deal with technology changes, but people like James are left behind. So in a way, technology has become a compliment for many skilled workers and a replacement for many unskilled workers.
- The decline of union groups: The share of workers represented by labor unions has dropped, significantly shrinkng Ron and Lilly's power to bargain for higher wages and benefits.
- I just spoke with the boss today. He isn't budging.
- Globalization: Because global businesses have their labor done in developing countries where it's cheaper, lesser skilled Americans like Jackie to lose her job.
- Gender Inequality: Currently, women receive 80 centsfor every dollar men receive. This is why Sally gets significantly less than her male counterpart for doing the same job.
- Some people argue that an economic gap is needed between the rich and poor to maintain economic stability.
- if an entrepreneur creates a business he may become a millionaire, but he will also create jobs and provide incomes for other workers.
- There may be a gap between highest and lowest earners. But the lowest are still better off than without entrepreneur.
- Income Inequality has shaken our country, causing deep social and economic divides. We must come together and solve this problem to continue growing our economy and improve the livelihoods of working Americans.
- Image Attributions:354939 (https://www.pexels.com/photo/art-background-decoration-light-354939/) - 隔壁光头老王 WangMing'Photo - License: Free To Use / No Attribution Required / See https://www.pexels.com/license/ for what is not allowed
- Economists call this the "Trickle Down Effect."
- This economic concept is considered controversial by many; Even Hillary Clinton coined the term "Trumped-up trickle-down" economics to show how Trump's economic policies would only benefit the rich.
- Income inequality at the global level: All ten people represent everyone on the planet based on income. If we distributed $100 among the ten people, the wealthiest 20% (top 2 people) would get $83, while the poorest 20% (bottom two people) would get $1.
- This gap is increasing as poverty and unemployment increases during Covid-19 times.
- Here is something to think about: If workers increase their productivity but don't receive proportionate compensations, is the "Trickle Down effect" really working?
- The best way to reduce income inequality is to tax the rich (those making 500k or more annually) and spend more money tailoring our education system to fit the needs of a technology-driven workforce (adding more computer classes). I also think it's essential to increase spending on social programs to help decrease poverty in our inner cities.
Image Attributions
- 354939 - 隔壁光头老王 WangMing'Photo - (License Free To Use / No Attribution Required / See https://www.pexels.com/license/ for what is not allowed )
Over 30 Million Storyboards Created