Income Inequality: The Unequal Gap Between Races - Essay Sample

Introduction

Income inequality analysis is a measure of the economic gap that exists between people of different levels. The recent dramatic increase in the U.S income level on inequality has prompted research on the trends in variation in family income and overall family income. However, the rise in income inequality among ethnic and racial communities varies at a lot from one group to the other. There has been a persistence and wide median family income gap that exist between the whites, blacks, and Hispanic people. The family income level gap measure shows that the gap continues to widen. This race data presents a mixed feeling as the economic gap that has existed since the year 1947 has not decreased or disappeared. This essay will, however, analyze the family income level of various ethnic groups in America that includes Hispanic, whites, and blacks and their percentage income growth over different periods. The analysis will evaluate the extent to which racial gaps in family income for Hispanics, whites, and blacks family exists and varies from the year 1947 to 2009.

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Analysis

Option 4 data analysis investigates the percentage of income gains or loss, which have occurred to various income distributions between the whites, blacks, and Hispanic from the year 1947 to 2009. The analysis shows that the income growth of both Hispanics and blacks slowed after the year 1973. During the 1980 and 1990s, the income growth of Hispanic people became flat. However, in the year 1995 to 1999, the income of Hispanic people rebounded quickly, where it grew at 4.2% a year. The data analysis provides evidence that throughout 1960s, black families' median income increased relative to those of white families where the ratio peaked in the mid-'70s. There is a notable income level gain that emerged in year 1989 to 1999 where there was a relative gain by blacks who experienced faster income growth than whites and Hispanic groups. At the end of the '80s, black families lost some ground relatives to the white people; however, this trend was then reversed in the '90s as, by the year 1999, blacks returned to the relative level of the 1960s. Although Hispanic people's income level gained relative to whites in 90's the relative income has thus trended down. Moreover, by the year 1999, their level of income, relative to that of whites, was at the same level as that of black families. Although the black people's income levels remain to be well below that of whites, the pattern, however, raised the income level ratio of black and white.

The data analysis shows that blacks and Hispanics earn low income as compared to whites. The data shows that as of 2009, the incarceration family income level of whites is more than doubles that of blacks and Hispanic people. The difference in whites to black income levels in the year 2009 was $ 24136. Comparing this gap, in the year 1947, the income level of whites was $26519, and that of black was $13558; this shows that there is a gap difference of $12,961, then it is evident that the gap continues has increased. The figure 1 below shows the variation that exists between the whites, blacks, and Hispanic families.

Figure 1.Income growth

The median family income level of whites, blacks, and Hispanic people made a sizeable gain from year1947 to 1979. However, since the year 1989, there has been a slow income growth from all the groups, and there was a wide income inequality gap between the whites and the two groups in the year 1995. Since the beginning of the global economic recession, there has developed a renewed focus in the economic and sociological works of literature on the income inequalities where there has been a particular attention that has been paid to family income over time and income sources distribution. From the data analysis, it is evident that white families have maintained a stable and remarkable income advantage over the Hispanic and black families over the past five decades. The statistics also indicate that there has been a slight narrow racial income gap between blacks and Hispanic families. Education and economic differences between whites and blacks have narrowed with time. While blacks are said to be poorer twice than whites, this reflects a remarkable improvement since 1947when the Hispanic and blacks were more than half.

Type of Data and the Importance of this Analysis

Option 4 table analysis is a median family income data that seek to study the recent and ongoing inequality gap that exists among the white, black, and Hispanic groups. This income inequality analysis measures the gaps across racial and ethnic groups. The analyses reflect that, on average, blacks and Hispanic are at least twice likely to be poor or unemployed. A family headed by a black or Hispanic person earns an average of little more than a half of what a white person may earn. This gap is seen to have grown wider since the beginning of the great recession

Discussion

Taking a closer look at the data offers less reason to celebrate. One of the biggest drivers in the rising income inequality is the difference that exists between the whites and the minority groups of rich and super-rich. Moreover, the racial income inequalities persistence has developed a major frustration in the U.S social policy since five decades ago. In 1947, the median family income ratio of blacks was 51% that of whites. In the year 2009, this is after 62 years, and the income level has had accelerated to 10% regardless of the anti-discrimination legislation attempts. Racial discrimination has remained to be a key driver in all labor market levels. Over the past few decades, America has witnessed a dramatic increase in economic resources market shares, which goes on to wealthy people. However, this shift has disproportionately harmed the blacks and Hispanics who are regarded as the minority groups because they remain to be overrepresented in the income distribution affluent portion.

Education is the key to all races upward mobility, and there has been an unequal measure of education to black or Hispanic relative to whites. For example, the gap in the school completion rate among Hispanic and blacks relative to white is huge. Increasingly, attaining a degree in America is regarded as a key to financial well being. Educations differences may be used to explain the income level gaps. The income level inequality gap between the '80s to '90s increased as a result of rising unemployment, policies such as minimum wage, anti-discrimination laws, and decline in unionization.

There has been racial occupation segregation that has to lead to the income level gap. In most parts of America, blacks and whites hold different types of jobs, and the jobs that are held by white people are better compared to those held by blacks or Hispanic people. Blacks and Hispanics people mostly work casual or semi-skilled jobs. Therefore, they may be less likely to be employed in managerial positions or in white-collar jobs that range from professional and managerial to clerical positions. Blacks and Hispanics who are not employed in professional jobs are likely to work as salespeople or clerks. Occupation such as fishing, farming, or forestry is mostly regarded as Hispanic people's job. ( Population Reference Bureau). The reason for this inequality in income level is discrimination that has continued to affect the minority groups. This discrimination is seen in also promotion and hiring. Moreover, wealth is concentrated in the hands of the white families and passed down in their family line.

Homeownership is a greater part of wealth composition. Homeownership is also another reason that may help to explain this gap. There has a been a long legacy of America residential segregation, which underpins most challenges the minority groups face in increasing equity and buying homes.

This table suggests that there is still a continuous inequality gap that is still progressing and is estimated to continue with time. Therefore some efforts may help remind people of the continuous legacy in America of racial discrimination that may yield some unexpected incomes. This data shows that America has a long way to remedy the problem of economic inequality. The most surprising thing about this data is that the inequality gap seems to widen despite the effort that America has placed of curbing discrimination and inequality.

Conclusion

The analysis highlights the need for social security among minority groups in America. On the policy note, the social security payout's efforts will have more deleterious effects on the income of the blacks and Hispanic groups than on whites. Black and Hispanic families face an intersecting and systemic barrier, which may limit their income and wealth building. Left unchecked, it is estimated that this gap could continue to increase and constrain the economy of the US. However, estimating the closing of the income inequality gap fully is a daunting task as the gap is the complex interactions product among political, historical, social, and institutional forces. However, the first step to curing this issue recognizes an accurate diagnosis and culprit behind inequality income gaps. However, it is important to identify the right target and framework from which this should be addressed comprehensively. It is important to begin by identifying the policies and initiatives that are likely to boost black and Hispanic families. Public policies may play a significant role in the creation of a more equitable society and in helping every American to create wealth. Homeownership, and education loans and tax policies may help build wealth and opportunities for the middle-class people.

Work Cited

Population Reference Bureau. "U.S. Occupational Segregation." Prb.org, 2000, https://www.prb.org/usoccupationalsegregation/. Accessed 26 Nov 2019.