6-2 Activity: Reflection: Society

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2-2 Activity: Topic Introduction

Cole Staats

Southern New Hampshire University

IDS-401 Global Society

March 10, 2023

2-2 Activity: Topic Introduction

Income Inequality

Globalization is a new phenomenon that describes how nations can relate to one another. By definition, globalization is the increasing interconnection of populations, cultures, and economies across the world. It occurs through the movement of goods and services, technology, ideas, and information across national borders. Globalization provides access to new cultures. It also facilitates the spread of innovation and technology. Furthermore, globalization provides access to new markets and talent. Although globalization has facilitated free trade and made countries more interdependent, it has promoted income inequality among racial minority groups.

Inequality is a critical social issue in most societies. It is associated with various social and health problems today. Income inequality is the common form of inequality, which describes how income is unevenly distributed in a given society. Income inequality has risen since the seventies (Tica et al., 2022). In the past few decades, income inequality has increased in almost all nations, but its speed is dependent on economic policy and institutions. Income inequality is caused by different factors, including technological progress, racial segregation, government policies, and, most importantly, trade globalization. Trade has facilitated growth in most countries by enhancing efficiency and competitiveness. However, increased trade between countries, as well as increased financial flows, partly facilitated by advancements in technology, are often driving income inequality (Dabla-Norris et al., 2015). Offshoring and the ability of companies to use labor-saving technologies in advanced countries have been associated with increasing skill premiums and a decline in manufacturing. Increasing skill premium is linked to the widening income inequality in advanced countries.

In the United States, racial minority groups are directly affected by income inequality. The income disparity between African Americans and their white counterparts has been persistent and extreme for decades. But currently, income inequality is rising rapidly among American Asians. Reports show that labor income among lower-income Asians is trailing behind income earnings generated by their counterparts in other racial groups (Kochhar & Cilluffo, 2018). Increasing income inequality is a significant issue because of its economic and social effects. Individuals at the bottom rungs of the income ladder have fewer economic opportunities. Several research studies also reveal that rising income inequality can severely affect economic growth by decreasing consumption spending and increasing borrowing among lower- and middle-income individuals.

Society has significantly influenced income inequality. Most societies are organized by hierarchies of race, gender, and class. The social organization signals that resources and wealth are unjustly or unevenly distributed among individuals in modern society. This contributes to inequalities between genders, racial groups, and social classes in terms of income, wealth, and other factors.

There are four general education lenses: the humanities, history, the natural and applied sciences, and the social sciences. I will analyze my topic through the social science lens. Social science looks at the relationship between individuals in societies. It defines inequality as something not equal, particularly in opportunities, rights, and status. Social science research can play a critical part in identifying the origin, extent, and effect of inequalities, such as income inequality.

References

Dabla-Norris, E., Kochhar, K., Suphaphiphat, N., Ricka, F., & Tsounta, E. (2015). Causes and Consequences of Income Inequality: A Global Perspective (1st ed.). International Monetary Fund. https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2016/12/31/Causes-and-Consequences-of-Income-Inequality-A-Global-Perspective-42986

Kochhar, R., & Cilluffo, A. (2018, July 12). Income Inequality in the U.S. Is Rising Most Rapidly Among Asians. Pew Research Center. Retrieved March 10, 2023, from https://www.pewresearch.org/social-trends/2018/07/12/income-inequality-in-the-u-s-is-rising-most-rapidly-among-asians/

Tica , J., Globan , T., & Arčabić, V. (2022). Managing the impact of globalization and technology on inequality. Economic Research-Ekonomska IstražIvanja, 35(1), 1035-1060. https://doi.org/10.1080/1331677X.2021.1952466