Income Inequality The uneven distribution of wealth across the United States and other countries; i.e. the gap between the rich and every other person or family in the United States. Let us investigate this further by breaking down the two words that develop this horrifying statistic. Income: the money received through working or through investments. Every working person in the United States receives an income whether it is wage or salary, that person is included in the income inequality statistic. Inequality The difference in size, compatibility, or lack of equality. Put these words together and you create a term that explains the gap in the wealth by “differences in ability, education and training, discrimination, tastes, and risks” (McConnell and Brue). As we look at the components that define income inequality, we can easily measure and understand why the gap exists whether it is job creation, personnel, or education. What about the components that create this inequality that are not easily quantified? These factors include racism, sexism, free and foreign trade, welfare and taxes, and even personal preferences. Let us investigate a few of the claims that group these factors under income inequality. Racism and sexism are believed to account for lower wages in the workforce with equal work being performed. With affirmative action plans and anti-discrimination hiring policies, racism in the workforce is still prevalent. An African-American family is making about two-thirds of the income a White family is bringing in during an accounting year. Although this does not seem to be significant, there is a growing African-American middle-class leaving a smaller portion of the lower class. Between 1968 and 2008, the percentage of black adults with family incomes in the lowest quintile dropped about 10 points, from about 40 to 30 percent, which also made smaller changes in the upper quartiles leaving more of the families in the middle-class area. During these percentage shifts, the disparities between white and black families was reduced to 18 percent which puts both families in the top earning quartile in the United States. In each quartile there were still differences in the average earnings between black and white Americans, but So does racism really account for Income Inequality or are there still more determining factors? I believe there is evidence to support the assumption that racism is a factor in income equality but I believe it is more subjective to believe that and there are other factors that will determine why there are such differences. Sexism in the workforce has been a favorite topic of the media and women’s advocate groups since the 1960s when more women had entered the workforce. Wage discrimination exists when two equally-qualified people have the same job duties but one of the two has a larger income. It has been shown that men are favored in wage discrimination, leaving women getting a lower wage for equal work. In the 1930’s, 26 of 48 states had laws prohibiting the employment of married women and it was the midst of the Great Depression and there were not enough jobs to keep men