Economic Problem

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Essay Paper on Economics

Essay Paper on Economics
Social polarization grows as the poor become worse off, but as the wealthy become better off. One of the reasons for that is the shocking fact that the poor often pay more taxes, relatively, than do the rich. In Britain, for example, “the tax burden of the top fifth of earners has fallen from 37 percent to 35 percent in the last twenty years. In contrast, the tax burden of the bottom fifth has risen from 31 percent to 38 percent.”
The other reason for social inequality nationally is imperfect income distribution. Thus, whereas 23.5 percent of all American workers received only poverty level wages in 1973, this had risen to 28.6 percent by 1997. Looked at another way, real wages for relatively low-paid workers fell by 22 percent between 1973 and 1995, and 10 percent for middle-range workers. Low-paid jobs grew by 22 percent in New York City between 1993 and 2000—four times as fast as jobs paying at least $25,000. From 1979 to 1995, 80 percent of jobs created were low-wage and/or part-time.
Among men who had less than twelve years of education in 1968, the average weekly wage level was $488 for those who worked full-time year-round. By 1994, this had fallen to $400 (adjusted for inflation). In 1993 high school dropouts earned 22 percent less than…...

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