Globalization and Income Inequality

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Income inequality refers to the uneven distribution of income among a population; in other words, the gap between the rich, poor, and those who fall in between. When it comes to the production of goods and services, it’s divided into four categories: land, labor, capital and entrepreneurship. When it comes to American goods, we perceive the majority being made in China. However, according to The Truth About Globalization, written by Timothy Taylor, only one-quarter of our imports come from low-wage economies, such as China, while more than a half come from advanced countries, such as Canada, Japan, and the European Union. Some may argue the production and transportation of goods from low-income countries increases inequality; however, it’s arguable to say that global trade isn't a large factor of income inequality, considering only one-quarter of our imports derive from low-wage economies. Income distribution may be affected more by factors, such as education, minimum wages, and taxation. Also, most workers in the United States, including low-wages workers, are in service industries such as restaurant labor, cleaning services, and so on. Since these are things that cannot be transported from one place to another, the industry of imported goods has not had competed much with the service industry. Therefore, the impact of increased international trades of inexpensive goods generally does not affect workers in the US.

YouTube url:	https://www.youtube.com/watch?v=ZMiWPAa6UWo&ab_channel=KanokoKimura
Created:	15. 12. 2020 06:41:22

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Globalization and Income Inequality