Income Gap

What is an income gap? Why does it exist? What can be done to change it?

What is the income gap? The difference in the quality of life between the rich and the poor.

= Why does the income gap exist? Poor lack the basic skills that would make taking part in the economy possible Little education= low paying jobs =

Colonialism Impact of colonialism- 15% of people own 85% economy the extension of a nation's sovereignty over territory beyond its borders by the establishment of either settler or exploitation colonies in which indigenous populations are directly ruled, displaced, or exterminated 15% of people own 85% economy 85% own 15% What kind of problems does this cause?

Moral Issues How can any caring society justify vast wealth in the hands of a few while most live in poverty from which they will never escape?

Economic dilemma Free Market- freedom and rewards Poor lack basic skills Little education Jobs like sweeping or shining shoes Slums breed disease and encourage crime Life span is shorter

A Political Problem Desperate people will take desperate measure Battles and Rebellions Argentina, Bolivia, Brazil, Columbia, El Salvador and Guatemala

Harsh military measures Human rights and dignity have been violated Rebels seek economic justice and military protects the wealthy

Solutions Free Market economy Democracy Education Providing economic opportunity and stability Democracy Outlet for protest and opposition so that policies can be adjusted to reflect the will of the majority of the people Education Literate and well educated populations will be need to fill the jobs that will become available in an increasingly complex economy

NAFTA North American Free Trade Agreement created by the governments of the United States, Canada, and Mexico December 17, 1992 President G. H. W. Bush signed the agreement President Bill Clinton signed it into law

What is NAFTA? Free trade agreement world’s largest free trade area, linking 439 million people and producing $15.3 trillion in goods and services annually actually began with President Ronald Regan Prior to NAFTA, Mexican tariffs on U.S. imports were 250% higher than U.S. tariffs on Mexican imports

NAFTA pros Unemployment was higher Before NAFTA Trade has more than tripled since NAFTA Manufacturing rose 58% from 93-06 U.S. wages rose 24% Ag exports grew Mexican wages grew Source: www.ustr.gov

NAFTA cons Negative impact on Canadian social programs Did not curb illegal immigration like it was “supposed” to

What is the meaning of this political cartoon?

Income Gap Main Ideas Infrastructure Maquiladora Informal economy Why income gap exist? Impact of Colonialism Economic dilemma Political/military problems What are solutions to problems? NAFTA NAFTA pros NAFTA cons