There is so much inequality between the rich and the poor and as a result gap keeps getting wider and wider. Organisations have great people that are talented and this makes a great difference if the organisation can attract the best cultures of people who include men and women that are talented and are used to the full. This usually happens when people start to divide themselves into class e.g., the area they live in, the school they went to, their social circles, race, colour and gender. This can also related to the Marxists theory of class.
The UK’s rising “inequality has grown from 0.331 in 2004 up to 0.345 in 2009, with a short drop in inequality to 0.341 in 2010. Again, the fact that inequality was continually rising well before the economic crash in 2008 serves a strong reminder that nascent economic recovery may not necessarily be a fair and equal recovery.” (Living Wage Commission, 2013)
“Aronowitz’s critique of mass culture and his analysis of important relations between this culture and the life of the workplace is a stimulating contribution to the literature on the American labour as his discussion off the multiple hierarchical categories of labour (i.e. occupational skill, race sex etc) as an explanation f the weakness of working-class consciousness in the United States”. (Aronowitz, S 1973 p465).
The drop in living standards and wage stagnation across income distribution affects the bottom majority of the poorest households who have the smallest elasticity in their budgets and hold their feet closer to the fire when living costs increase.
In most households with low pay, it means that the family will have the worst diet which will lead to obesity which is a higher risk to health problems, more debt, and children attaining poor grades at school at every stage of their education life. This means that pay has a particular importance to gender, equality. Sex and race as majority paid workers are women, Eastern Europeans and Asians.
When trapped in a low pay, it usually means that it is a life- long existence that is passed on from generation to generation. “Brown and Lauder (1999: 50), writes on increase on income inequalities in the USA and UK between low and high skilled jobs, and so the answer must be to ‘give’ unskilled workers the skills they require in order to compete for a pool of skilled positions”. (Moore. P (2012) p153)
Most of the people in the world live on a dollar a day as they produce goods for big organisations such as Gap, Cadbury, H and M, Primark and the conditions they work in are so appalling and risk their lives in order to produce goods for the Developed countries who sale them for a very big profit margin. The poor will always be poor as inequality grows between greedy organisations that contract their work to developing countries without taking into consideration the working conditions nor pay structures in place. The state should be able to do more in order to protect its citizens.
Aronowiz. S (1973) The Shaping of American Working Class Consciousness, McGraw-Hill Company, 465 pp.
Moore. P (2012) Globalisation and Labour Struggle in Asia
The Smith Institute/Living wage Commission. The Living wage: Context and key issues ( September 2013)