Topic:
Country: United States of America
Delegate Name: Reese Bower
UNDP
Income Inequality
United States of America
Reese Bower
Forest Hills Eastern
Income inequality is an increasingly pressing issue within developed and developing nations alike. While income inequality between countries has decreased in the last 25 years, income inequality within countries has worsened. Currently, the richest 10% of the population owns 76% of all global wealth, while the poorest half only owns 2%. The problem is difficult to target as it has many contributing aspects. Factors such as worker’s rights, engrained systems of inequality, and lack of proper education all add to a growing gap between the wealthy and those in poverty. The COVID-19 pandemic has additionally contributed to increasing income inequality around the world and in the United States, reversing past progress. Lower-income populations have experienced extreme losses in both jobs and income, with 25 million in the US alone losing their job during the pandemic. Decreasing income inequality and protecting workers’ rights are closely related, and if one increases, the other likely will as well.
The United States has a Gini coefficient of 41.5, one of the highest among economically developed nations in the world. COVID has hit the US severely, but measures to reduce the harmful impact on those with lower incomes have been enacted. The American Rescue Plan, a relief plan for COVID, benefits the middle and lower classes by providing needed financial support in the form of increased tax credit, small business support, and stimulus checks. As an important topic in the United States, there are many proposed bills concerning this subject, including the Ultra-Millionaire Tax, the Protecting the Right to Organize Act, and the American Opportunity Accounts Act. The United States recognizes the importance of education in improving income inequality by providing social and economic mobility. USAID trains officials, teachers, and administrators in creating sustainable education systems for children across the world. Additionally, the United States supports international workers’ rights by endorsing international labor groups such as the International Labour Organization and carrying out the Global Labor Program, a part of USAID.
The United States will continue to carry out aid programs concerning education and urges other developing countries to do the same. In addition, the US further emphasizes the importance of protecting the rights of workers internationally. However, The United States does not support increased economic regulation as a solution. Deregulation strengthens competition and economic growth, which is helpful in combating income inequality. Instead, it is recommended that the United Nations promote an international standard of laborers’ rights such as minimum wage and child labor regulations. Since the problem is largely internal, basic guidelines that allow countries to address their individual issues should be set.
