Why Has Income Inequality Been Rising Since the 1970’s?Explain.

The Two Propositions
There are two conflicting views pertaining to the widening gap of skill, education and earning inequality between the few who are at the top of the social ladder as compared to the overwhelming majority. One of which is that the falling behind of the majority is because most people have become lazy and uncompetitive on their own doing while others believe that the increasing gap is brought by social factors that are beyond the control of the marginalized majority. Rather, the income disparity is highly influenced by policies. In his article, ‘Skills, education, and the rise of earnings inequality among the “other 99 percent”,’ David Autor, provided a well-researched and informative perspective to explain the mechanics of social mobility and its present status especially in well-developed countries. Social mobility has been defined as the chances or “opportunities for progression within the social hierarchy” (Nunn, A., Johnson, S., Monro, S., Bickerstaffe, T., & Kelsey, S., 2007). According to studies, there is an extraordinary gap of income between the top 1% of American households as compared to the 99% and this gap is increasing at an incredible rate (Autor, D., 2014). Autor believe that this gap has something to do with the supply and demand for skills and how skills are heavily rewarded in highly developed countries (Autor, D., 2014). Because certain skills are in demand and these skills are found in the top 1% of the American household, it is only logical to think that their incomes would exceed that of the other families. However, skills that pay higher are acquired through education. Also, it is quite evident that the amount of education in order to acquire a certain skill is also proportional to how that particular skill is being rewarded. For the same reason, in highly developed societies, those who have attained higher education are among the highly paid while the less educated worker would have to contend with the minimum wage, which is often immobile. The importance of education to social mobility or the ability to rise up the social hierarchy has been emphasized by Autor. Accordingly, a century ago when the demand requires physical strength to be utilized in agricultural labor, education somehow does not pose a huge gap between illiterate and literate Americans. However, economic activity has shifted from agriculture to electronics, technology, hospitality, entertainment, etc., the demand for analytical skills become very much apparent leaving behind physical skill as less in demand because of mechanical and electronic advancements (Autor, D., 2014). Author is implying that in the new economy, education is a critical aspect in order to attain the skill that society demands as well as to maintain a high degree of social mobility. In fact, the nation’s economic and social well-being can be determined through the level of education that the general population has attained (Odland, S.).
Policies Affecting Social Mobility
In the present society, certain policies and dynamics have made education especially higher education restrictive, which also has a significant impact on social mobility. In America, for example, college fees have gone out of proportion that only middle class families can afford to send their children to college while poor families would have to rely on grants before they can get a descent college education. If college education is restrictive, then it does not matter whether people are lazy or not primarily because it is not laziness or industry that determines ones engagement in college but the individual’s financial capability. As a ripple effect, those families who are already earning substantially are also the ones who are more capable of sending their children to college to get their degrees while the others are left behind to contend to learn other skills, albeit more physically intensive skills that pay much lesser. Autor also cites the declining power of the labor union to demand generous wage and benefits for blue-collared employees (Autor, D., 2014). For Autor, this is one example of how policies influence social mobility as well. Autor believe that the rising inequality is a sole consequence of the impersonal forces of supply and demand as what the changes in technology and business interests suggests but rather, the widening gap in income inequality is substantially influenced by social policies that might be altered to minimize the disparity on opportunities between the rich and the poor.

References
Autor, D. (2014). Skills, education, and the rise of earnings inequality among the “other 99 percent”. Science.org, 843 – 851.
Nunn, A., Johnson, S., Monro, S., Bickerstaffe, T., & Kelsey, S. (2007). Factors influencing social mobility. Retrieved February 2015, from http://repository-intralibrary.leedsmet.ac.uk/: http://repository-intralibrary.leedsmet.ac.uk/open_virtual_file_path/i08n191048t/rrep450.pdf
Odland, S. (2012, March). College Costs Out Of Control. Retrieved July 2014, from http://www.forbes.com/: http://www.forbes.com/sites/steveodland/2012/03/24/college-costs-are-soaring/

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