The financial gap between the rich and poor is continuing to grow, and has no evidence of stopping any time soon.
According to United States Census Bureau 45.3 million people in the US were officially considered in the poverty level in the year 2013. Even though it was a decrease nationally from 2012 rates, regional poverty rates were not different than those in 2012.
On the other hand, Forbes released the top 400 wealthiest people in America (as of September 29th 2014) and combined had a total net worth of an impressive 2.29 trillion dollars, even after having a minimum price entry of 1.55 billion dollars.
And yes, both scenarios are on the extreme opposite sides of the spectrum, but the problem remains the same: the rich are getting richer and the poor are getting poorer.
There are many things that factor into the widening gap between the two groups, technology being a major one. The advancements in technology have improved companies’ productivity, rendering many jobs that once required a person unnecessary. And because of that many people were left jobless. However, technology has helped a lot of people in the job industry as well, specifically those who own businesses. Owners no longer have to pay as many workers, and as a result they save money.
Minimum wage in California was raised to $9 an hour on July 1st 2014. Many people thought it was a much needed raise for the many hard working people living off those low wage jobs.
But let’s do the math. Though raising the minimum wage was needed, it doesn’t provide much security for those surviving off of low wage jobs. The average work week is 47 hours according to the Washington Post. If a person works 47 hours earning 9 dollars an hour, they will have a yearly salary of about $22,000, not including taxes, bills etc. So basically the person needs to live accident, luxury and children free in order to live somewhat comfortably off this salary, and that is not realistic.
And this isn’t just a problem in America, it is a worldwide problem. GlobalIssues.org found that the poorest 40% of the world’s population makes up about 5% of global income, while the wealthiest 20% makes up three-quarters of the world’s income. The gap is continuing to grow so quick that Oxfam.org predicted that the top one percent will own at least 50% of the world’s wealth by 2016.
Fixing the Problem
The solution isn’t going to happen overnight and it certainly isn’t going to be an easy fix. We can start by providing easier access to higher levels of education for those who can’t necessarily afford going to school. Advanced education would allow more people to apply for higher paying jobs.
CNN stated that increasing the minimum wage to $10.10 would lift 5 million people out of poverty, and though it’s a small step, it’s a step in the right direction.