You probably hear the term income inequality thrown around and discussed on your favorite cable news station often. However, you may not be aware just how much that income disparity between classes is growing each year in the United States. WOTC is a vital program as it’s one step to getting those less fortunate than us back to work and making competitive wages again. The last time income inequality was this high in the United States was prior to the Great Depression.
While you might think this is an issue that only affects a small portion of Americans, unfortunately you’d be wrong. The average family income for the bottom 90% of the country has been stagnant since 1980. A gallon of gas in 1980 was $1.08. Average family income must move with normal inflation or we are leaving a portion of our society with not chance to make enough money to truly succeed.
Leave behind your preconceived notions that this is a “lower class” problem. The formerly strong American middle class is now beginning to lose ground to other developed countries. Canada now has the most affluent middle class, not the U.S. Besides Canada, many European countries are getting closer and closer to passing America’s middle class. If you take into account the educational and healthcare benefits offered in many of these countries (instead of just income), then the gap grows even wider.
What can be done to help change this unsettling trend? Tax reform! Without a drastic change to the national minimum wage business owners are not going to willingly increase their workers’ wages. WOTC helps circumvent this problem by helping owners offset a share of their employee’s wages. This allows business owners to pay higher wages to their staff without feeling the effect on their bottom line.
If you read through this blog and think income inequality is growing due to the lower wage workers “not working hard enough”, then please be on the lookout for our next blog. We will dissect the idea of the “American Dream” and see how it’s changed over the generations.