We often hear that big corporations need to pay their employees more. Income inequality is the result of these kinds of businesses, at least according to some people. The truth is that big corporations really don’t cause income inequality. On top of that, big corporations don’t get to keep everything they make in sales.
There seems to be this false notion amongst minimum wage supporters that revenue means income. Revenue is simply a fancier word for sales. If anybody thinks of it as income, it should only be thought of as gross income.
Much of the time, we hear a lot of opinions about the president of the United States. We hear about his approval rating, policies he’s pushing for, and other decisions he makes. One subject we tend to hear a lot about is the economy of our nation. “GDP is up, unemployment rate’s down. Thus, our economy is improving!” Statements similar to this one make me worry because our nation’s economy is much more than GDP and unemployment. There’s labor force participation, disposable income, and income per capita, just to name a few.
Though, I don’t particularly agree with some of these economic indicators, there are still many indicators that Americans should understand in order to keep themselves well informed. Some may read this and think, “Why should we even care in the first place?” The answer is simple: The president can manipulate his image if he understands economics well. If Americans are very uneducated about topics like economics, he can, and will, use that to his advantage in order to get himself, or his party, reelected.
After reading into Oregon’s 10-year plan outcome areas for the economy, I noticed something that really worries me. It mentions closing the income inequality gap and getting the per capita income above the national average. Trying to close the income inequality gap is a nice idea, but raising the per capita income isn’t a good indicator of economic success. This is because it can be raised by the rich getting richer or, worse, the poor getting poorer.