Income inequality is often a major concern faced by working-class people in the community. It refers to how unevenly income is being distributed among different segments of the community population. Addressing income and neighborhood inequality is essential for every community since it can lead to wealth disparity, future instability, and delayed economic upheaval. Here is how you can address income inequality in your neighborhood
Measuring income inequality gives a fair idea of wealth distribution in your community. More than often, people are paid less or better based on a few factors such as gender, race, ethnicity, occupation, and geographical location. According to surveys, more than 60% of US citizens say that there is an alarming amount of income equality in the country.
Addressing income inequality is important to change this perspective and transform your community. However, before we talk about how to reduce income inequality, it is important to know why it is so crucial to get rid of it and what causes income inequality in the first place.
Here is why addressing income inequality is critical for every community
Effects of Income Inequality
After nearly decades leading up to the recession, income inequality was found to be the largest poverty-increasing factor. This is because income inequality causes uneven distribution of wealth among different classes of people based on their geographical location, gender, and race. This can give rise to some gruesome social issues like political polarization, conflicts, and low economic growth. In addition to this, income equality also eliminates social cohesion in your community which can have drastic effects on the overall well-being and emotional stability of residents.
Causes of Income Inequality
In order to resolve income inequality and prevent its consequences, it is imperative to understand why it rears its head in the first place. Here are some major causes that give birth to disrupted income distribution in communities
- Race Bias and Gender Discrimination
It is no news that people of color and women have suffered from income disparities. In a lot of communities, men earn more than women, and white men earn more than men of color. This is a disturbing situation for a community’s future and social upheaval. Being one of the popular causes for wage gaps, communities should take steps to resolve this issue and encourage companies to lend jobs without any race or gender bias. Communities should also prompt women and people of color to lead teams within the organization and allow them to take on management jobs.
- Advances in Technology
While a boon in many ways, accept it on, advances in technology are an obvious reason for income inequality. Advances in technologies like AI, machine learning, and automation have reduced job opportunities for blue-collared workers providing lower wages to uneducated employees.
As trade between nations increases, manufacturing companies move to locations where labor costs are cheaper. This means more secure and generational job opportunities but close to nothing income.
People with less than a high school degree do not receive frequent income increments. However, college degree holders and graduates are bound to earn more in a shorter period with less hard work.
- Economic Conditions
When economic conditions rile up, taxation, poverty, lack of job opportunities, crimes, and income inequality become common, which contributes more to the already struggling economic landscape. So countries stay stuck in this loop forever without knowing how to address this plague of economic inequality.
Addressing and Reducing Income Inequality in Your Neighborhood
We should always start small. Focus on your community and local neighborhood by making people aware of how gender discrimination and race bias are detrimental to a community’s financial stability. Here are some things you can do to reduce income neighborhood inequality and income gaps
- Financial Technologies
As worldwide initiative for financial inclusion is underway, advancement and innovations have been made for low-income earners. The IMF and World Bank have set up the goal to help increase the income of 10% of the lowest-earning workers in every country. Moreover, financial technologies and productions are being introduced to help lowest lowest-earning earners of different communities
Communities should encourage education and improving cashable skills that will help them earn more in the future.
- Create Equal Opportunities
Employers in the community should set up quotas for people who are discriminated against at workplaces. Women should be encouraged to take leading jobs and people of color should be paid equal wages as their colleagues based on their post and position.
Through the Strake app, you can make better decisions for your community and brainstorm ideas to resolve challenges. It is a community-driven platform where residents can interact, connect, and communicate with one another.