Inequality For All Income Inequality Analysis

After watching the movie Inequality for All the income inequality is widening. There's no simple answer. Globalization has created "superstars" and concentrated pay among corporate executives, Wall Street traders, popular entertainers and another financial elite. At the same time, factory workers now compete with 3 billion people in China, India, eastern Europe and elsewhere who weren't working for multinational corporations 20 years ago. Many now make products for Apple, Intel, General Motors and others at low wages. This has depressed middle-class pay. And pay has risen much faster for college graduates than for high-school graduates. These trends have contributed to a "hollowed out" labor market, with more jobs at the higher and lower ends
Some scientists and politicians consider income inequality to be a natural and beneficial feature of a nation's economy. According to the American Enterprise Institute, a political think-tank, the "growing inequality gap is associated with growing oppor¬tunity—in this case, the opportunity to advance through education." In this view, inequality comes necessarily because of growing prosperity and accompanies the improved standard of living of all people in the economy. Inequality is seen to reward some actors in the economy for increased investment in the future; the suppression of inequality has the effect of discouraging output. There is the incentive effect which is if someone works harder and therefore receives a higher wage then this is not a market failure. The promise of a higher wage is essential to encourage extra effort. By rewarding hard work, there will be a boost to productivity leading to a higher national output – so everyone can benefit. Another benefit is Entrepreneurs require rewards. Inequality is necessary to encourage entrepreneurs to take risks and set up new business. Without the prospect of substantial rewards, there would be little incentive to take risks and invest in new business opportunities. Trickledown effect. If some people gain extra income, then this can ‘trickle down’ to other people, e.g. if an entrepreneur sets up a business he may become a millionaire, but also will create jobs and provide incomes for other workers. There may be a gap between highest and lowest earners. But, the lowest earners are still better off than without the entrepreneur. Finally, fairness this one is in comparison to Kirk Cousins sighing a $86 million dollar fully guaranteed contract for the next three seasons with the Minnesota Vikings. I think this number is ridiculous for any person to make this kind of money. Many people will argue the contrary and say the this is a reflection