The Cost of Income Inequality

Posted August 28, 2014
By Clay Cerny

 

Huffington Post reports that income inequality costs the average American worker $18,000 a year. This number is drawn from an Economic Policy Institute report that considers how money has been redistributed from the working poor and middle class to the 1%. The question is not just lost income, but also how increased productivity has not been matched by increased salaries. Huffington Post author Jillian Berman puts it this way: “The rich have gotten richer at the expense of the rest of us.”

This article is another example of why good job news can hide deeper problems. If workers are getting low income jobs or not getting decent raise, they will have a constant feeling of falling behind, one step from bankruptcy – social insecurity. This problem will not be solved until something changes so there is a more equitable distribution of income and wealth. America needs a raise, the kind of raise that will let working people pay off their debts and save for the future.