Precis on the Executive Summary of the State of Working America Essay (Article)

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The workings Americans faced a serious economic turmoil in the year of 2001 due to major economic slump and increased ratio of unemployment, unlike the era of late 1990s when the labor markets of the US contributed a major participation in the economic growth due to increased wages of all level of workers. The loss of employment caused a serious decline in incomes of all classes, including the elite class even. Working hours were reduced for married couples. However, this earning figure was almost double for each earner class in 1950s and 1960s. Today, the income inequality has become worse in the United States that was not so in the earlier cases. Some critics have tried to moderate this issue by referencing those who gained a massive increment on their early salaries. However, the facts deny this concept. Furthermore, the current innovations in federal taxation will enhance the prevailing dilemma of income inequality. During the recession of year 2001, the capital income was too low to satisfy corporate income.

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The income growth and income inequality trends are the major determinants of wage trends and it has been profoundly found that the strong wage growth was on the same line in 2002 as it was in the late 1990s. Though, the high labor slack of the early 2000s interrupted this cycle of growth. The rationale behind this constant and increased labor slack was the development of wage inequality between low-wage and middle-wage workers. During the past quarter century, the wage story has three major parts that include increased wage growth due to an era of stagnant and falling wages, changed trends of wage growth and enhanced ratio of unemployment. The current productivity growth has also led to the modern trends of wage growth. In addition, the education and skills also contributed to increased unemployment, especially among lower class workers.

As far as job opportunities are concerned, the labor market was intensified with increased employment in the late 1990s and deprived groups also benefited from those healthy chances. In contrast, the recession era was the period of higher unemployment and labor slack, but still, the rate of unemployment was low comparative to the previous recessions. However, many potential job seekers left this plane of employment and could not be counted towards total unemployment statistics. This period of downturn had a major impact on minorities and the people with less education. However, other groups were the also the victims of this economic turmoil.

Wealth distribution is also highly unequal in the United States because it has been found that half of the Americans do not hold shares in the stock market. On the other hand, home ownership trend increased, especially among nonwhites. The debt burdens, however, could not produce a serious trouble for the typical household. America has always been working on poverty alleviation and it was on the same line due to increased poverty rates. The combination of fast growth and very low unemployment may enable the poor to keep pace with the other classes. It has also been indicated in relation to the US that job growth was worse in 39 states in the same period. However, the national labor market of the United States started to recover in the middle of 2004. On the comparative analysis of the US economy with the other developed countries included in OECD, it’s per capital income was the highest amongst all of them. However, the US reported the largest gap between its richest and poorest workers. Similarly, the United States also reported the largest Gini co-efficient, which was another parameter for measuring within-country inequality. The advocates of the US economic model still appreciate its style due to efficacious policies.

References

Mishel, L., Bernstein & Allegretto, S. (2005). The State of Working America 2004/2005. Cornel University ILR Press. 1-17.

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IvyPanda. 2021. "Precis on the Executive Summary of the State of Working America." October 10, 2021. https://ivypanda.com/essays/precis-on-the-executive-summary-of-the-state-of-working-america/.

1. IvyPanda. "Precis on the Executive Summary of the State of Working America." October 10, 2021. https://ivypanda.com/essays/precis-on-the-executive-summary-of-the-state-of-working-america/.


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