Question 1:
David H. Autor shares insight into his analysis on why income inequality has continued to rise since the 1970’s. According to Autor, the primary source of this inequality has been due to the need for “a rising skills premium” for securing employment (Autor, 843). Whereas there once was a point in American history where blue collar labor jobs were in high demand because of the large manufacturing that was occurring in the United States, in modern times these jobs have been dwindling. In place of these labor jobs there has been a demand for jobs that involve cognitive skills that are generally obtained through pursuit of a higher education. One of the main catalysts for this need for higher education stems from the replacement of machines that are capable of doing the jobs that were once done by people. Most importantly Autor blames this large gap in income inequality to “a severe decline in non-college employment as a result of the automation of intelligent machinery, increased international completion from developing nations, the decline of power of the U.S. labor unions, and the successive enactment of multiple reductions in top federal marginal tax rates” (843). A large emphasis is placed by Autor on the importance and significance of income that differs in individuals with a college education versus a high school education. Unfortunately, even this pursuit of higher education may not be enough when considering the limited intergenerational mobility, which may interfere with a large portion of the 99 percent left stuck in the bottom range of the income scale.
Question 2:
It appears that Autor’s position in the article more so supports the second proposition blaming the government policies on the ever increasing wage inequality that has been seen, which continue to expand. A lack of intergenerational mobility can clearly be seen as a limiting factor for the large majority of Americans (Autor, 848). Perhaps there are policies that have not been considered in allowing those in the bottom to have access to affordable or free higher education, which may allow these groups to climb up the socio-economic ladder. After all, it is up to the government how they choose to regulate the cost of public universities. Instead of making college more affordable, the cost continues to rise making it even more difficult for the lower income students to break the cycle and elevate their position to enjoy the gains of opportunity that comes with a college degree. According to Autor (2015), “these three forces—technological change, deunionization, and globalization—work in tandem” to enforce the rising income inequality among Americans. Lastly, there are clearly problems associated with lack of or need for modification of policies that add to this unfortunate reality, which includes- loss of value in the U.S. minimum wage, and a “sharp reductions in top federal marginal tax rates that have raised after-tax inequality and increased the incentive of highly paid workers to seek still higher compensation” (Autor, 850). Autor also refers to a paper by Piketty and Saez who suggest “the rising share of household incomes accruing to the top few percentiles of households in numerous developed countries over the past several decades is also primarily a market phenomenon, or instead reflects changing social norms, growing corporate misgovernance, slackening regulatory oversight, or increasing political capture of the policymaking process by elites” (Autor, 850). In conclusion, needless to say, the government’s inability to hold strong to bringing equality to its citizens can be blamed for this unjust gap in income inequality that has been growing over the decades.
Works Cited
Autor, David H. "Skills, Education, and the Rise of Earnings Inequality Among the "Other 99
Percent"" Science 344.843 (2014): 843-51. Web.
