Income Inequalities
By: Karla Hernandez
(Credit: iStock)
Income inequality is showcased in many forms throughout US society. Recently, income inequality has become a topic of debate due to the ongoing COVID-19 pandemic, and its disruption to the US economy. In order to curb the economic downturn due to the COVID-19 pandemic, the US government issued three economic impact payments to Americans who made an income under $75,000 annually. The relief was much needed for Americans across the country as many Americans dealt with job losses, medical expenses due to COVID-19 treatment, and increasing costs due to supply chain issues. Although the economic impact payments were beneficial to many Americans, many experts and economists proposed the question of whether the stimulus checks actually had a positive benefit to Americans, and if they actually contributed to income inequality.
The economic expansion prior to COVID-19 was the longest in US history. However, as soon as the COVID-19 pandemic forced many Americans into lockdown the worst affected Americans were those in low-paying jobs with median earnings of $10.22. The lowest-paid people were the most likely to lose work during the pandemic. To curb the stress of unemployment on low-paying American employees, the federal government rolled out extensive unemployment benefits and three rounds of stimulus checks. Many researchers argued that this added extra strain to the federal government, however, the generous stimulus propelled consumer demands during the pandemic.
Despite the efforts of the government fiscal policies to help struggling American workers and the American economy, income inequality trended significantly upward throughout the COVID-19 pandemic. According to a study done by JP Morgan Chase economists, the number of households experiencing substantial downward income changes fell most for low-income households during the COVID-19 pandemic. This study concluded that fiscal policy can have a rapid and direct effect on US households. Low-income families experience the most income growth and greatest mitigation of downside risk during the expansion period and with the benefit of COVID-related stimulus, which widens income inequality.
Overall, income inequality continues to trend upward throughout the nation. The COVID-10 pandemic continues to widen the gap between low, middle, and high-income workers in the United States. Although the federal government made great efforts to curb the economic crisis brought by the COVID-19 pandemic, it did not solve income inequality, but rather increased income inequality. Income inequality today continues to trend upward as low-income earners continue to face a weak job market and weak wages.
Income inequality is showcased in many forms throughout US society. Recently, income inequality has become a topic of debate due to the ongoing COVID-19 pandemic, and its disruption to the US economy. In order to curb the economic downturn due to the COVID-19 pandemic, the US government issued three economic impact payments to Americans who made an income under $75,000 annually. The relief was much needed for Americans across the country as many Americans dealt with job losses, medical expenses due to COVID-19 treatment, and increasing costs due to supply chain issues. Although the economic impact payments were beneficial to many Americans, many experts and economists proposed the question of whether the stimulus checks actually had a positive benefit to Americans, and if they actually contributed to income inequality.
The economic expansion prior to COVID-19 was the longest in US history. However, as soon as the COVID-19 pandemic forced many Americans into lockdown the worst affected Americans were those in low-paying jobs with median earnings of $10.22. The lowest-paid people were the most likely to lose work during the pandemic. To curb the stress of unemployment on low-paying American employees, the federal government rolled out extensive unemployment benefits and three rounds of stimulus checks. Many researchers argued that this added extra strain to the federal government, however, the generous stimulus propelled consumer demands during the pandemic.
Despite the efforts of the government fiscal policies to help struggling American workers and the American economy, income inequality trended significantly upward throughout the COVID-19 pandemic. According to a study done by JP Morgan Chase economists, the number of households experiencing substantial downward income changes fell most for low-income households during the COVID-19 pandemic. This study concluded that fiscal policy can have a rapid and direct effect on US households. Low-income families experience the most income growth and greatest mitigation of downside risk during the expansion period and with the benefit of COVID-related stimulus, which widens income inequality.
Overall, income inequality continues to trend upward throughout the nation. The COVID-10 pandemic continues to widen the gap between low, middle, and high-income workers in the United States. Although the federal government made great efforts to curb the economic crisis brought by the COVID-19 pandemic, it did not solve income inequality, but rather increased income inequality. Income inequality today continues to trend upward as low-income earners continue to face a weak job market and weak wages.
