Introduction The Stanford Centre on Poverty and Inequality is a federally-funded poverty institution that focuses on monitoring inequality and poverty trends in the U.S. (Grusky et al., 2016). The centre examines the factors and forces that influence the trends and develop science-based policy on inequality and poverty. The “State of the Union: The Poverty and Inequality Report 2016” suggests that the U.S. ranks poorly when compared with other well-off nations (Grusky et al., 2016). The report is compiled by some of the leading global experts on inequality and poverty. Besides, the report encompasses data on employment, poverty, economic mobility, wealth inequality, health inequality, and educational outcomes (Grusky et al., 2016). The 2016 Stanford report on poverty and inequality suggests that the levels of inequality and poverty in the U.S. are worse, especially when compared to other well-off countries.
According to the report, among the ten well-off Western countries, U.S. ranks 5th on poverty, 8th on economic mobility and health of labour markets, 10th on safety net performance, wealth inequality, and income inequality (Grusky et al, 2016). These were the six major categories that the report examined. Furthermore, the report shows that in some American states, such as Kentucky and Alabama, the levels of health inequality are comparable to those of post-soviet-bloc nations such as Estonia, Bulgaria and Latvia. Overall, the study involved over two dozen countries together with the U.S.
The report further indicates that the inequality gap is growing in the American society (Grusky et al., 2016). It implies that Americans are living is a starkly unequal country and society. The inequality manifests itself in terms of gaps in income, wages, and wealth that are wider in America than in other well-off nations across the globe. It may not be surprising that countries have different levels of inequality, poverty and outcomes of labour market. The safety net that can be used to remedy the inequality gap in the American society encompass programs that improve health Care, unemployment benefits, as well improve welfare and homeless shelters that focus on preventing Americans from being poor beyond certain levels.
The main propose of the report was to establish the way America stacks up against other well-off western countries when it comes to poverty and unequal opportunity. For example, the test score differences between children from low and high income families are abnormally high in America. It is a reflection about the way differences in schooling and socioeconomic context influences the differences in educational outcomes and unequal opportunities later in life. The report indicates that income inequality have grown sharply since the 80s.
Significance of the Report
The report is a wakeup call for America and other developed countries, as it underlines the fact that almost all nations, including wealthy nation, suffer from poverty. Americans believe that the U.S. is an exceptional country, but they are yet to fully appreciate the fact that the country also stands out on many types of inequalities. It seems that the “land of opportunity” is not delivering its promise to promote economic mobility. Out of ten countries, the U.S. is ranked number eight when it comes to economic mobility, which is a cause of concern. Nearly 50 million people are living below the poverty line in America (Skidmore, 2016). Although America has a long history of mobility, prosperity, and justice, the poverty and inequality trends recorded in the past three decades have left affected most Americans. As a result, those who are left behind have little hope of having a better future. They struggle to cope with little hope of upward mobility on the economic ladder.
The U.S. government and other agencies rely on the Stanford’s annual poverty and inequality report to develop policies aimed at reducing poverty and equalizing opportunity in America. The poverty and inequality situation in America is not good for the economy or the society (Skidmore, 2016). World’s richest country should be capable of sustaining a fair and healthy economy. Individuals who are able and willing to work should find jobs that enable them to support themselves and their families. Furthermore, such jobs should help them deal with poverty (Joseph, 2016). However, to understand the issue of poverty in America, one should look beyond the figures and examine the actual living conditions of the people deemed by the U.S. government to be poor. Many Americans associate poverty with near destitution, which is the inability to provide one’s family with clothing, nutritious food, or meaningful shelter (Skidmore, 2016). The U.S. government should work with non-governmental organizations and the private sector actors at state, local, and federal levels. In most instances, the inequality has a negative impact on the prosperity and health of the society at large (Joseph, 2016).
Conclusion
The 2016 Stanford poverty and inequality report comprises analysed data on employment, poverty, economic mobility, health inequities, educational outcomes, residential segregation, wealth, and income inequality. It shows that when charted among ten well-off Western countries, the U.S. ranks lowest overall. Relevant governmental and non-governmental agencies and organizations should use the poverty and inequality report to find ways of restoring fairness and opportunity to American society and economy. Moreover, the report shows that an improvement in America’s safety net spending would play a big role in reducing the poverty rates in America. The federal, state, and private sectors should play an active role in exposing and addressing the realities of economic inequality and poverty in the U.S. It involves addressing the causes, ramifications, and developing practical remedies.
References
Grusky, B., Mattingly, J. and Varner, E. (2016). State of the Union: The Poverty and Inequality Report 2016. Retrieved May 24, 2016 from http://inequality.stanford.edu/sites/default/files/Pathways-SOTU-2016.pdf.
Joseph, D. (2016). Inequality in America: 10 Causes and 10 Cures. New York: McGraw-Hill, Press.
Skidmore, M. (2016). Poverty in America: Urban and Rural Inequality and Deprivation in the 21st Century. Oxford: Oxford University Press.
