Wages, Productivity and Employment - Free Essay Example

In the fall of 1976, the group ABBA released their hit Money, Money, Money. This song reflects on the working class individual working hard every day for what, to make money and pay the bills, fantasying what it would be like to be the rich man. Money is the driving force of our society and without money what would our world be like. Everyone wants money, everyone works for money, but are we being paid a fair dollar for what we do or is income inequality playing a role in our paycheck? What is the definition of income inequality? Merriam Webster defines income: as a gain or recurrent benefit usually measured in money that derives from capital or labor. Merriam Webster also defines inequality: as the quality of being unequal or uneven, disparity of distribution or opportunity, or the condition of being variable. Combining these two definitions, income inequality may also be defined as the gap between what the CEO earns and the average worker earns working for the same company, the wage difference between a woman employee or a male employee, or the variance in wages of that of a white individual or a black individual. So how does income inequality affect our society? Income inequality affects our society by stereotyping an individual based on their race or sexuality not based on their ability to perform the job. The pressure has always been on corporations to make the most money for the lowest amount of cost. The easiest method for a corporation to cut cost is to adjust the wages of their employees or outsource the jobs to countries that pay a lower wage to their employees. Katalin Botos notes in her article, Effects of Income Inequalities: Society and Economy, Over the past two decades, wages and salaries have stagnated, or actually declined in the US (384). This decline in wages or salaries has caused individuals to fall into a lower class and possibly into a poverty level. Data has shown that Income inequalities have increased extremely in the US in the last quarter of a century (Botos 385). Anne Lowery writes in her article, The Rich Get Richer Through the Recovery, The top 10 percent of earners took more than half of the countrys total income in 2012(Lowery). From 2000 through 2006, the number of Americans living in poverty increased 15 percent.(Income Inequality in America). So is the United States really the land of opportunity or as the saying goes, the rich keep getting richer and the poor keep getting poorer? Katalin Botos writes The American dream that anyone can make it to the top, will remain as it is: a dream (386). Is this how we want our society to be or do we want to improve the gap in the income inequalities? The theory to solving income inequality is that society should pay each individual equally. Society would take the highest wages and the lowest wages coming up with a median wage for each individual. Individuals would be happy because there would be no division between upper class and lower class, each individual would be equal. The downfall of this theory would be the loss of the desire to succeed. Individuals would not strive to achieve a higher goal due to the fact why should they, we all make the same money no matter the job. If everyone makes the same wage there will always be that one employee who puts in 110% effort into a job and another individual who only puts in 50% effort, should they be paid equally? We are then back to inequality between workers because why it is fair for one to be working at 110% and another to be working at a 50% level. Looking into this theory as a society are we able to change this process or is it going to continue to spiral out of control. A policy that could be placed into effect would be that of individuals are paid on their productivity, performance, and knowledge of the job they are doing. Cobb and Flannery state that Firms play a central role in how workers are matched to jobs and how they are rewarded for their labor (331). Productivity would be based on a standardize number or expectation of the job. Performance would include showing up to work, working your assigned schedule, and attitude while at work. An individual would need to know their job, by knowing the job the individual would be able to perform the job correctly and be productive at it. Katalin Botos writes This democratic structure would be the foundation where each individual could get an opportunity to make best use of their capabilities (386). In conclusion, placing this policy of wages based on productivity, performance, and knowledge of the job will assist in rewarding those individuals who want to work and want to get ahead in life allowing those individuals that do not want to work the option not to get ahead. The policy would not be excluding anyone, everyone would be given the opportunity, but it is up to the individual what they choose to do with it. Society still has a difficult task ahead of them attempting to solve the income inequality of the nation. There will be individuals in our world that still believe they are not being paid a fair wage for the work they do and there will be those individuals who are content with what they are making along with doing. As ABBA put it in the last verse of their song All the things I could do, If I had a little money, Its a rich mans world (ABBA).

Tutor Spotlight Meet Liz, Economics and Finance Tutor

Tell us about where you grew up, and what your world looked like. This week we're spotlighting Liz, a New York-based MITgraduate who loves teaching economics, mathematics, and finance!Since graduating from MIT, Liz is following her dream of working in art as a co-founder and the CEO of a start-up based in NYC called limeSHIFT, which uses a co-creative art process to build culture and community, instigate and manage change within organizations, and transform working spaces. You can look at Liz's tutor profile here. Tell us about where you grew up, and what your world looked like. I grew up in the suburbs north of New York City. There is small stream that runs through my childhood neighborhood and my brother and I frequently played in the water trying to catch small fish, worms and other critters. We were pretty active and rambunctious kids and my world was filled with outdoor forts, soccer balls, and skinned knees from rollerblading. What did you decide to study, and why? As a kid, I always loved puzzles. On trips, my family would challenge each other to mensa games and that instilled a lifelong love of numbers. In college, I tried my first art history class and became smitten. I loved sitting in the dark lecture hall learning about history and culture through the lens of art. Pairing my interests in numbers and art, I pursued a mechanical engineering degree, which let me explore both of my passions and learn some pretty cool computer programs and machine tools along the way. What are you up to now? How did you decide to pursue this? I received my MBA from MIT Sloan in June 2015 and started an art company based in NYC. My company, limeSHIFT, uses a co-creative art process to empower and engage communities. We believe that art has the power to bring people together like nothing else in the world. While at MIT, I met my cofounders, an artist and a diplomat, who were using this art practice in public space to address social justice issues and heal communities in conflict zones. We wanted to create a sustainable way to finance these important projects and spread art's beauty to non-traditional areas. What do you imagine your life will look like in 5-10 years? limeSHIFT is a growing and successful company; we are completing important work globally; and we have changed hearts and minds on the value of art. Oh, and we have a super cool, artsy office in Brooklyn. What’s a lesson you’ve learned from teaching? Teaching is so much more than instructing on content. Students are looking for guidance on study habits, career choices, extracurricular endeavors and life lessons. It's been more fun and challenging than I expected. What daily routines or habits are most important for you to do your work? Working out! I'm a avid yogi, cycler and gym nut. If I didn't drag myself out of bed in the morning to work out, I'd lay around all day and be incredibly lazy. It's the best way to start the day, get my energy level up (pre-coffee!) and get motivated to do work. Tell us a story from your childhood. Or, introduce us to your 15 year old self. Both of my parents are doctors and when I was in kindergarten, my teacher invited my dad to class to dissect a fish (he's an anesthesiologist). I was his assistant during the dissection and I remember being grossed out by the fish eyeballs, but I couldn't leave his side. To this day, I have no idea why my teacher wanted my dad to dissect the fish! What’s the best gift you’ve ever received or given? For my best friend's 30th birthday, I created a journal of poems, pictures and memories for her that we passed among our friend group and each friend created a new entry. The journal traveled across the country for 2 months leading up to her birthday celebration. She had no idea and cried when she read it. What does your daily information consumption diet look like? I'm an NPR junkie. Before I even get out of bed, I turn on NPR's Morning Edition. Hearing the stories gets me going while I brush my teeth. My favorite is Storycorps. I look forward to it every Friday. When I get to the office, I progress to the New York Times and Wall Street Journal, periodically checking throughout the day. What’s something that has inspired you recently? This past Sunday, I visited my mom's first apartment. Her family was very poor and she grew up in the projects, first in the Inwood neighborhood of Manhattan and then in Coney Island, Brooklyn. I had never seen the actual building where she grew up and seeing brought her memories to life in a way that I hadn't experienced before. I am impressed, inspired and awed by her. Because of her hard work and perseverance, she built a successful and meaningful career as a doctor and completely changed her life. How do you stay focused and motivated? I surround myself with incredibly smart, driven and talented people. Our shared passion for the work that we do propels us forward. What advice would you give to someone looking to get where you are now? Explore! Allow yourself the freedom to explore your passions and interests. You will work so much harder when you find work that is personally meaningful to you. ;