One of the social issues regarding power, status, and class in American society today is economic inequality. Statistically speaking, the income gap between social classes has widened considerably since the 1960s, creating a significant gap between the rich and the poor. This gap has become so large that the middle class has almost shrunk, creating a social class composed only of rich and poor; America's richest 1 percent own nearly half the nation's wealth; not to mention that today, the richest 1 percent of Americans earn 25 percent of the nation's income, compared to 1976, when they earned just 9 percent. If we also consider investments such as stocks, funds, etc., the richest 1 percent own 50 percent of the country's investments while 50 percent of Americans own only 0.5 percent. hundred. When compared to countries similar to America, there are certain factors that have given rise to this crazy increase in inequality in America. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get an original essayFirstly, technology has led to an increase in the demand for skills when recruiting employees. Technology has focused on significant wage premiums for workers with high levels of education and skills. This eliminates the jobs of less skilled workers by providing a more productive, less “humane” alternative and forcing workers into lower-paying service jobs. To further demolish the everyday low-income American, deindustrialization has dramatically affected low-wage services and changed the way the economy, business, and labor relations are organized. Not to mention the fact that the minimum wage has not kept up with inflation. Clearly, there is a gap between those who benefit from technology and those who suffer from it, and this is reflected in rising income inequality. Globalization is also a major driver of economic inequality. Especially when the very production of goods and services has become international. For example, in the case of the iPhone, it is designed in Palo Alto, but it is physically manufactured in various countries, including China, Japan, and Germany. Why and how these skills match among workers is central to understanding why globalized production leads to increased inequality. Even more worrying, this situation potentially has an impact on the wages that less skilled workers can receive. Thus, the most qualified worker, due to the growing international demand for his skills, sees his salary increase. Businesses are often criticized for putting profits before workers, and this may be true in some cases, but the business must also remain competitive. For example, American companies must compete with cheaper Chinese and Indian companies that pay their workers much less. Another major cause of inequality is government policies. Government policies in the United States have not done a good enough job of taxing the wealthy. Tax laws in the United States are part of a progressive system. There are many tax loops that rich people use to avoid paying high taxes. When the wealthiest are not taxed as they should, the government has fewer resources to help the less fortunate, to help.