Financial Inequality In The U.s As One Of The Most Prominent Social Issues

Financial inequality in the U.S has been one of the most prominent social issues in our society. The pay gap between different class groups has become larger throughout the nation. Income inequality is the wage discrepancy between different types of groups due to race and gender. The economic growth has not been fairly shared. Although the wage gap fluctuates, the gap will always continue to exist and get wider until this social issue is resolved.

Race is one major reason why class income inequality exists. In 1964, the Civil Rights Act was signed by President Lyndon B. Johnson. The Civil Rights Act is a labor and civil rights law that prohibits discrimination based on race, color, religion, sex, or national origin. The signing of this law hoped to form equality in society. Although this was a major historic moment, unfortunately, race still affects a person’s ability to attain a job and get paid the same as any other race. It has been shown that black men and women earn lower wages compared to white men and women. Richard Delgado and Jean Stefancic’s theory on critical race theory explains and proves why race plays a role in income inequality. Delgado and Stefancic state, “Studies show that blacks and Latinos who seek loans, apartments, or jobs are much more apt than similarity qualified whites to be rejected, often for vague or spurious reasons… chief executive officers, surgeons, and university presidents are almost all white.” (Farganis 2013:415). There is racial inequality in the job market. Most high ranking jobs are held by whites. Since there are racial inequalities when searching and applying for jobs, blacks and other low-wage workers often settle for jobs that offer lower wages and have to work more hours per year to have economic stability. Minorities have to settle for harder jobs that require more labor and little pay, which causes income inequality because they have to work harder than someone who is white with the same job. Regardless of the education acquired, racial disparities still exist. A white man and a black man may have the same qualifications and amount of education but the company will hire the white man instead. Some companies have a certain ‘look’ and rather hire someone with a lighter skin complexion or a certain gender. Blacks are given menial occupations and experience racial disparities in wages and benefits.

Capitalism is a major reason why the gap is widening. Delgado and Stefancic state that racism is embedded in capitalism. Capitalism is designed to have a superior and a subordinate which causes unequal distribution of wealth. Racism and capitalism link together because of labor discrimination and institutional racism. According to Delgado and Stefancic, “Racial hierarchies determine who gets the tangible benefits, including the best jobs, the best schools…” (Farganis 2013:416). Minorities have fewer opportunities in the labor market. For example, minorities will receive fewer call-backs after an interview or will not receive promotions compared to other races. Since minorities are obtaining jobs with lower wages, their economic stability is hindered. Attending college and living in a good neighborhood with a satisfactory school system may be impossible. The amount of money and hard work being put in are not balanced. Nonetheless, the wage discrepancy between minorities and whites is increasing. The majority groups are exploiting minority groups even though there are laws that prohibit discrimination and prejudice. Furthermore, Delgado and Stefancic believe there is no color blindness in the U.S. Color blindness is a color-blind society in which there is equal opportunity for all races. Unfortunately, that is not appearing in the labor market. Black people experience disadvantages in education, labor market, healthcare, and housing. If one cannot acquire a well-paying job, then they will suffer economically which will impact their wellbeing. The proper housing and healthcare will be a major issue due to low wage jobs. These disadvantages and inequalities form class inequality. This results in people attaining more wealth than others which causes unequal opportunity.

Race has always been a major issue in our nation. It’s important that society acknowledge this issue instead of ignoring it. Social income disparities affect one’s livelihood. Groups that are not being paid fairly, such as minorities and women, are suffering because they are settling for lower wages and undervalued jobs. The lack of wealth and fair income hinders general wellbeing. This prohibits people from acquiring the same housing and healthcare as the upper class. Unfortunately, in a society that exists today, the access to these goods are dependent on wealth and income. Eliminating the disparities we are experiencing today in America will require more public policy efforts to do away with pay, gender and racial inequality in the labor market to create equal opportunity for all.