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Answer on Macroeconomics Question for Jimmy Vo

Question #25437
Give five reasons that the income distribution in the United States has become more unequal in the last several decades. Do you regard this as a problem for society? Why or why not?
Expert's answer
Incomes have become more unequal in the United States for three primary reasons:

• Changes in employment patterns
• Increased returns to education
• Changes in households

First reason is really a problem for the society, the percentage of workers who belong to a labor union decreased dramatically in the past 30 years. That in itself results in a lower wage for millions of workers, because unions exist to push wages upward, and they usually succeed.

But the other two reasons are not so critical for the society.

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