The Ever-Growing Income Inequality

Updated 12/26/23

Like any other nation, the United States has grappled with the issue of income inequality for a century, making it a recurring theme in political campaigns. As technology disrupts various sectors, the problem is poised to intensify, especially as artificial intelligence (AI) seeks to replace jobs requiring higher education. Jobs once considered secure may be replaced by AI within a few years, making income inequality a potential crisis in the near future if both the government and corporations do not take decisive action.

In his first inaugural address on January 20, 1981, President Ronald Reagan declared, "Government is not the solution; government is the problem." However, only the government can effectively address large and complex issues faced by the public. The last two major crises—the 2008 financial crisis and the Covid-19 pandemic—were brought under control through government intervention. While income inequality may not be as prominent as financial or public health crises, it has been a long-ignored issue that is poised to worsen with the advent of AI. The government is a crucial component in solving the puzzle of the growing income gap over the last forty years. Income disparity could evolve into a major crisis unless the government takes steps to address it.

 A comprehensive public program, akin to those providing financial aid for completing four-year degrees or higher, must be implemented. These programs should encourage individuals unable to attend a four-year college for various reasons to train for new, in-demand jobs or those anticipated in the coming years. Income inequality primarily stems from the lack of access to high-paying jobs between educated and uneducated populations. Despite this, there are high-paying jobs in the technology, construction, or plumbing industries that require minimal training to enter. The government needs to actively promote these opportunities for individuals determined to change their lifestyles. Training programs should not be free; similar to the student loan program, individuals can repay the aid once their living situations improve. This strategy targets the large group of people unable to attend a four-year college and provides a straightforward path to achieving middle-class status.

In implementing job training programs, the government should consider the impact of AI on income inequality. Collaboration with AI companies is essential to identify jobs that will be in demand and to train individuals accordingly.

Government intervention is also needed to regulate how corporations hire and promote employees. Discrimination in the hiring and promotion processes within corporations contributes to the spread of income inequality. The government must ensure that corporations have systems in place to provide equal opportunities for hiring and promoting hardworking and qualified employees. Discrimination based on race, gender, and religion should not be tolerated.

Corporations play a significant role in reducing income inequality. They are often responsible for hiring and promoting employees, and they should prioritize qualifications over factors such as race or gender. After the government, corporations have the capacity to contribute significantly to reducing income inequality. Businesses should strive for a workforce, executives, and board members that mirror the diversity of the nation.

Corporations also need to collaborate with disenfranchised communities to provide access to internship and job training programs, enabling children from these communities to aspire to a better future. Many children in impoverished communities lack access to role models who can help shape their futures. Corporations must encourage these children to pursue higher education or participate in job training programs to enhance their earning potential.

While the problem of income inequality cannot be completely eradicated due to individual choices, a large income gap poses risks to both the economy and democracy. With AI poised to make many jobs obsolete, the government and corporations must collaborate to address the issue before it escalates.