Minimum Wage Inequality

Introduction
This policy paper’s main objective is to attempt to answer the question, " to what extent does income inequality relates to federal minimum wage". Though it is obvious that income inequality exists in every State, ethnicity, and generation, what makes it an important topic to discuss is the growing infliction of unequal distribution of household or individual income across the various participants in an American economy. Therefore, even with an existing policy that was passed in 1938, to assist with the uneven wealth distribution, the Fair Labor Standard Act (FLSA) enactment of federal minimum wage did little to improve the living status of the blue-collar workers throughout America. Thus, it is imperative to recognize the linkage and to what extent, if there is any, why a majority of Americans today still struggle to be well off or to become independent from governmental aid with the federal minimum wage policy in place, to which should stop or slow down the growing gap of income inequality.
Moreover, there is an undeniable evidence in data, research materials, and tangible evidence that the FLSA’s federal minimum wage implementation in cities like New York, Chicago, and Las Angeles is not adequate enough to close the gap of income inequality. According to Inequality.org, the federal minimum wages, after accounting for inflation, have little or no
growth for the individual or household income. For example, in 2016, Wall Street banks allocated billions of dollars in bonuses to their one hundred seventy-seven thousand New York-based workforces, which aggregates to one-point-six times the collective incomes of millions of Americans who work full-time at the existing federal minimum wage. Hence, through this example, the effects of the federal minimum wage can be foretold related to income inequality.
Therefore, in this paper, the readers will learn about the history of income inequality and federal minimum wage, three different evidences to show that this is an issue that American people need to be aware of, three recommendations, and alternatives to help decrease the gap of income inequality through the use of some kind of federal minimum wage policy.
Regardless of the direction of this policy paper, whether or not income inequality relates to federal minimum wage, one thing is for sure, reducing the gap between rich and poor is beneficial for the overall wellness of American economy and its
citizens.