We keep talking about Income Inequality in America, what is your plan?
Ok Angel, wait a minute, what do you mean by that? If you are reading this article, you might be asking that question. Let me explain my point of view on why I wrote this blog. We all know there is income inequality not only in the United States, but also around the world. According to latest statistics specially in the United States, income inequality has risen sharply since 2013. Nearly every state has been affected by income inequality. How do we fix the problem? Well, it is not as easy as we think.
Many professionals in the field suggest that having a more than moderate raise in minimum wage so people can have more buying power and in term help the economy grow is the real solution. Well, raising the minimum wage have side effects also. For example, if certain state mandate to raise the minimum wage from nine dollars to fourteen dollars an hour, we have a difference of five extra dollars per hour, per individual, if you multiply that by thirty employees the difference is a huge number. I already did the math for you on this blog, employees will earn an extra 40.00 dollars per day or 200.00 more per week, which is an extra 800.00 per month, and if you multiply 800.00 times thirty employees, we are looking at 24,000.00 more a month the employer would have to pay a month. From 43,200 on monthly payroll to 67,200.00. It is a huge difference. And it is this type of sample that people will have to calculate. By the way this is just basic numbers, because if that business or industry does provide production incentives, we will be talking about even more money to payout every month, not even counting employee benefits such as medical, dental, and life insurance coverages that keep raising all the time. There is no doubt we live in an economic imbalance were many situations can mix their forces to bring an economic saturation to the ecosystem we live in, but there are ways to improve on economic standards thus creating more wealth in many ways.
I remember growing up as a kid, I love to go to Kentucky Fried Chicken. I remember when it first opened their doors in my town, it was the very first fast food restaurant around. My order was always the same, regular fried chicken with mashed potatoes, gravy and a delicious biscuit. My Mom used to take us there on Fridays and we loved it. I sprinkled the tiny packets of salt and pepper they give you with your order. The reason I did it was because I thought it tastes better that way. Fast food places have been spawning like wildfires since their inception. They have without a doubt contribute to income inequality in the United States, and the reason is simple. The more franchises you see, the more employees they will have creating more low paying jobs and sometimes more franchise owners. The owners in many cases will make very good income, but employees will still make the minimum wage. It is my point to address that politicians have debate this issue over and over and over with no resolution in sight. Honestly, I don’t think there is one or at least for the time being, unless we all come to agree on a positive nonpolitical solution. What I do believe is that we must teach our kids from young age how to save, and how they can be smart with their money, and the reason on why having an action plan after high school graduation is a must. College education is an all time high also. The cost keeps on climbing by the year, sometimes by the semester. Unfortunately, this is one of the reasons many college students can’t keep up with their plans and drop out of college, ending perhaps getting a low paying job. Although is true we have the same opportunities, we don’t always have the same resources available to us, maybe due to the region we live in, or maybe a hard situation we live in. The main point should be don’t let income inequality bother you, you can make it happen. The sky is the limit for those who want to achieve success in their future, nothing stopping you now but yourself. It might take months or years but keep to your plan, you will get there. In business there is no easy road for sure. When you start any venture it’s like a zig zag line, just like a sail boat in the middle of the ocean trying to catch the right direction of wind to be able to navigate and get in the right path.