Economic inequality has a big impact on young people's chances to move up in the world, especially as the gap between the rich and the poor gets bigger.
In 2021, the wealthiest 10% of American households owned about 70% of all the money in the country. On the other hand, the bottom 50% had just 2%. This difference makes it hard for many people to get important things like good education and healthcare.
Funding Differences: Schools in richer neighborhoods get a lot more money from local property taxes. A report from 2019 showed that schools in wealthy areas had, on average, $5,000 more for each student than schools in less wealthy areas.
College Enrollment: When it comes to going to college, there's a big gap based on how much money families make. In 2020, only 54% of low-income students went to college, compared to 80% of students from high-income families.
Networking: Families with more money can help their kids meet important people and find great internships. This can make it easier for them to get jobs after graduation.
Pay Differences: On average, college graduates from low-income families earn about 800,000 less.
A 2020 study by the National Bureau of Economic Research found that only about 7% of children born into the bottom income group move up to a higher income level in the U.S. In Canada, this rate is around 13%.
In summary, economic inequality makes it really hard for people to improve their situation. This creates a cycle where rich people keep getting richer, while those with less money struggle to find better opportunities.
Economic inequality has a big impact on young people's chances to move up in the world, especially as the gap between the rich and the poor gets bigger.
In 2021, the wealthiest 10% of American households owned about 70% of all the money in the country. On the other hand, the bottom 50% had just 2%. This difference makes it hard for many people to get important things like good education and healthcare.
Funding Differences: Schools in richer neighborhoods get a lot more money from local property taxes. A report from 2019 showed that schools in wealthy areas had, on average, $5,000 more for each student than schools in less wealthy areas.
College Enrollment: When it comes to going to college, there's a big gap based on how much money families make. In 2020, only 54% of low-income students went to college, compared to 80% of students from high-income families.
Networking: Families with more money can help their kids meet important people and find great internships. This can make it easier for them to get jobs after graduation.
Pay Differences: On average, college graduates from low-income families earn about 800,000 less.
A 2020 study by the National Bureau of Economic Research found that only about 7% of children born into the bottom income group move up to a higher income level in the U.S. In Canada, this rate is around 13%.
In summary, economic inequality makes it really hard for people to improve their situation. This creates a cycle where rich people keep getting richer, while those with less money struggle to find better opportunities.