What does "income inequality" mean? What is not equal? Are some being paid more for the same work? Now that would be income inequality. I would not define the spread in income distribution as income inequality, no more than the spread in age between young and old could be defined as "age inequality".
Good point.
What is equality? If each citizen in a country makes $40,000 exactly, irrespective of his education, skills and experience, then I suppose by every standard used by international organization, this country has perfect income equality?
Equality means you are compensated based on your personal ability. Human lahour is like any consumer product. Its price is determined by demand and supply. Nobody requires a MBA/lawyer/doctor to be paid $100,000 while a bus driver $30,000. Yet can a bus driver give you legal advice, performs surgery or knows to how run a company? Probably not. Does a MBA/lawyer/doctor know how to drive a truck from A to B, or assemble auto parts? Give them a few weeks of training, they will. that's the difference.
When no one is willing to pay mor than $10 an hour for your labour and your life is miserable, it doesn't mean it is not fair, it only means your labour is in abundant supply and is only worth $10 an hour and no more. The right attitude is to learn some more skills and become more valuable to potential employees, instead of whining about unfairness. Envy those banks who make tons? Why not submit your resume to see if you qualify? A bank will be more than willing to pay $10 an hour to its executives too to save cost, but the fact is, when supply is scarce, the price goes up.
So in the past 30 years the bottom 20% make less money and the top 20% make more. Is it defined as "inequality"? The past 30 years have seen vast changes in terms of techological advancement. 30 years ago, most people have never used a computer before. When techology improves, computers and machines replace many low skilled workers, making their skills obsolete. So if someone today still possesses the kind of skills from 1985, should we be surprised that his real income actually dropped by 20%? I wouldn't. I call that fair.
And there is the workload associated wit it. Many of us tend to focus only on how much money others make, ignoring how much efforts they made. I know many friends who work in the financial industry. Their workload is unimaginable. Can you handle a 14 hour work schedule every single day? Can you sleep for a total of 6 hours in three days finishing a consulting project because the deadline is tight? Are you willing to sacrifice your time with your spouse and kids spending more hours with your colleagues/boss than family? It is not uncommon for a lawyer or investment banker to work for
80 hours a week or more. Are you able to do that?
I myself am not rich but I make a decent income. I know the value of education so I did two master's degree from a top university. I later spent 3 years studying every day after work for my professional certificate, one level each year. and I am still in constant fear/worry that my skills are not enough or useful. You expect to get a high school diploma or some trades from a crappy unknown school, and expect to be one of the middle class folks enjoying a comfortable life for the rest of your life?
Those who think their income is unfairly low should really think about two things
1) how competitive my skills/education are? Is there a lack of demand for people like me? Am I 100% replaceable (if fired today, can be replaced easily by 9 am tomorrow)?
2) have I studied hard in school to be outstanding, or I was always mediocre/below average? Have I constantly been improving myself, acquiring new skills to meet the demand of employers, or I have pretty much replied on the skills I had 10 years ago?