Exercise 7. Complete the text using the words from the box in the correct form.

 

access development failure income inequality issue skills ticket

 

The 1)_____ of American families change frequently. Some of the poor get richer, some of the rich get poorer, and for a variety of reasons: accumulation of job 2)_____ and experience, marriage and divorce, job change, addition or loss of a second paycheck, and business success or 3)_____.

But despite this churning, overall rates of mobility in the United States have not changed over time. Thus, it is fair to conclude that increases in annual 4)______ have worsened the distribution of lifetime incomes. Although the disparity in economic rewards has increased, the availability of those rewards—the probability of success or failure—has remained unchanged.

There has been one notable 5)_____ within this broader picture, however. The mobility of those with little education has declined. Increasingly, a college education is the 6)_____ to upward mobility.

The question of how much inequality is acceptable or appropriate in the United States is an 7)_____ on which there is no agreement. Still, it is somewhat disturbing to learn that the seemingly relentless growth in the inequality of economic rewards has been unmitigated by any increase in 8)_____ to those rewards, especially for those with the fewest skills.

 

 

Exercise 8. Read the text below. Choose the best word to fill each gap from A, B, C or D below. There is an example at the beginning. 0).

 

Distribution of wealth is a 0) __ B _ _ of the wealth of various members or groups in a society, and is one aspect of the economy and social 1)_____. Typically, various racial and ethnic groups possess differing 2)_____ of wealth, and the same is true when people are grouped by age or education. Different jobs bring in greatly different wages; the 3_____ for some jobs is thousands of times greater than that for other jobs. There are any number of 4)_____ in which the distribution of wealth can be analysed. An example is to 5)_____ the wealth of the wealthiest ten percent with the wealth of the poorest ten percent.

In many societies, the richest ten percent control more than half of the total wealth.

In some countries, attempts are made through taxation, regulation and governmental 6)_____ to diminish the inherent economic tendency for capital (and therefore effective political power) to accumulate among small groups.

The political 7)_____ of socialism and communism are intended to diminish the perceived conflicts arising from unequal distribution of wealth. They attempt to do so by forcing wealthier members of society to 8)_____ some or all of their assets to the state in a process sometimes called redistribution of wealth. Another method of redistribution of wealth is progressive taxation and inheritance tax. Critics of state-managed economies cite the former Soviet Union and The People's Republic of China as examples of countries where, despite aggressive economic 9)_____, wealth continued to be distributed unevenly.

At the end of the twentieth century, wealth is concentrated 10)_____ G8 and Western industrialized nations, along with several Asian nations. In the United States, 10% of the population owns 71% of the wealth, and the top 1% controls 38%. On the other hand, the bottom 40% own less than 1% of the total wealth.

 

0 A similarity B comparison C value D fairness

 

1. A society B frame C structure D construction

2. A amounts B sums C values D quantities

3. A compensation B fee C pay D fare

4. A manners B modes C instruments D ways

5. A approximate B correspond C compare D liken

6. A oversight B care C surveillance D supervision

7. A classes B differences C systems D societies

8. A give up B surrender C sacrifice D donate

9. A order B directive C policy D regulation

10. A between B among C amidst D outside

 

 

Exercise 9. Communicative situations.

 

1. Should people who work in riskier jobs earn higher incomes? If your answer is ‘yes’, is the inequality necessarily «bad»? Explain why.

2. What does it mean to say that a person is «living in poverty»? Explain your reasoning.

3. If luck were more important than education in determining one's income, would the distribution of income be «fair»? Discuss it.

4. What can you say about cash transfer in this country?

Exercise 10. Below you can find three approaches to solve some economic problems in the USA. In your opinion, which approach is the best? Can some of the suggestions be used to solve similar problems in Ukraine? What are your suggestions?

 

What should the government do to increase the American standard of living?
I think the government must do everything possible to remove barriers to economic growth. Our economy rewards hard work and wise investments, and it provides Americans with one of the highest standards of living in the world. Our free market system promises the next generation even greater rewards. But now, many Americans have seen their wages stagnate, largely because of tax hikes and unnecessary government regulations – both of which discourage economic growth. To increase everyone's slice of the economic pie, government must let the pie grow more rapidly.	I think the government must make sure all workers share in the economy's growth. The economy is strong, but profits are not shared equitably among all workers who contribute to economic growth. Taxes and other economic policies favour the affluent at the expense of everyone else. Some inequality in income is necessary to spur hard work and entrepreneurial activity. But today's degree of inequality is excessive, morally wrong, and bad for the economy. A strong economy requires motivated workers at all levels. The widening gap between rich and poor undermines democracy, which is based on fairness.	I think the government must make sure everyone has an equal opportunity to get ahead. Americans want to earn a fair share – they don't want to be given one through a change in tax rates that could be changed again and again. But they need a fair start on the road to economic success. Fairness requires that every child has an equal opportunity to attend good schools, to prepare for well-paying jobs by getting a higher education, and to advance in a career. Fairness also requires adequate healthcare and nutrition. But millions of children from low- and middle-income families do not get a fair start and so are denied access to high-paying professional and technical fields.
What are some of the steps that should be taken?
Lower taxes, especially on savings and investments. This would give investors more incentives to start new businesses and hire more workers. Balance the federal budget. As it is, annual government borrowing drains money from more productive uses in the economy. Give businesses more freedom to expand by reducing unnecessary regulations.	Increase taxes on wealthy Americans, because they have benefited the most from economic growth. Ease taxes on the middle class, and increase tax credits for low-income workers. Expand government aid to low-income workers; for example, improve programs that provide unemployment benefits and childcare subsidies. Raise the minimum wage, currently $4.25, to help low-income working families.	Keep taxes as they are, but invest more money in social strategies that help people get ahead. For example, expand child nutrition programs and preschool programs like Head Start. Give equal funding to all public schools so all children can acquire the skills they need to succeed. Give parents more choice in selecting schools for their children. Provide more financial help so that children in poor and middle-class families can go to college. Expand training and apprenticeship programs that help graduates get decent jobs.
What are some arguments in support of this approach?
This approach is fair: it rewards effort, talent, savings, and investment. The economy must provide rewards for investment, because new ventures help raise the American standard of living. Too much government regulation hurts U.S. industry – for example, more than a dozen federal agencies regulate businesses that sell U.S. products abroad.	All workers contribute to the economy; all should benefit. Child poverty rates have risen because so many families have declining incomes. Huge differences in income jeopardize democracy: economic problems become political problems if people lose hope of getting ahead.	American democracy is based on the equal opportunity to succeed. The quality of public schools varies enormously; millions of Americans don't get anything like an equal start. Because higher education is prohibitively expensive for most Americans, they are denied access to the nation's better-paying jobs.
What are some arguments against this approach?
Increased spending on schools has not improved them in the past, and may not do so in the future. This approach would likely lead to costly, unproven job-training programs. No matter how many workers become skilled, there will always be many low- paying jobs.	Statistics on the income gap are misleading: they do not include the value of such things as food stamps and subsidized healthcare and housing. Widening income gaps are part of a global trend, which America cannot control. Equalizing income through taxes and public assistance increases the cost of government and offers the individual fewer incentives to work hard.	Increased spending on schools has not improved them in the past, and may not do so in the future. This approach would likely lead to costly, unproven job-training programs. No matter how many workers become skilled, there will always be many low- paying jobs.
What is a likely cost or a tradeoff?
Average incomes may continue to stagnate, creating increasing resentment among most Americans.	Higher taxes could slow the economy.	Greatly increased spending on education may not improve results, judging from past experience.
What's the best definition of fairness in income distribution?
People differ in effort, ambition, and talent – and their paychecks should reflect the differences fairly.	Fair income distribution means that, in a growing economy, all workers see their earnings rise.	Income levels largely correspond to levels of education and training. Fairness demands equal access to education.
Is the growing gap between rich and poor a problem?
Not in itself. If the economy is growing, everyone will benefit.	Yes. The widening gap is unjust, divisive, and demoralizing for many Americans.	Not in itself. More important is the huge gap in educational opportunity.
What role should government play?
As small a role as possible. Unnecessary, costly government regulations are putting a drag on the economy.	Balancing economic interests to preserve a healthy democracy.	Making sure all Americans have a chance to better themselves.
How will this approach help the average family?
Lower taxes and fewer regulations will spur entrepreneurial activity, creating more jobs and higher wages.	Making taxes more equitable will ease financial stress for most American families.	Increasing opportunities will increase people's self-reliance and motivation to succeed.
How will this approach help the poor?
Rapid economic growth will create jobs at all levels.	Increasing the minimum wage and tax credits for low-income workers will lift the working poor out of poverty.	Proper education and job training will help poor people move up to the middle class.
Is poverty a serious problem?
It's overstated. Poverty statistics reflect people's incomes, not their assets, including cars, appliances, and homes.	It's serious, no matter how you figure it.	It's critical. Nearly one in four children lives in poverty and faces a bleak future.
Why are people poor?
Most don't make enougheffort.	Many people won't work unless they have to.	They can't find well-paying jobs. Many poor people work hard, earning low wages.
Does welfare help or harm families?
It harms them, because it encourages family breakup and dependence on the government.	It harms families. Welfare as it is currently set up provides no model for getting people back to work – but it can be reformed to do so.	It helps, but not nearly enough.
Does welfare make people unwilling to work?
Yes, people who receive generous benefits see less need to work.	No. It's not that benefits are too generous, it's that government demands nothing in return.	No. There is a shortage of jobs for which poor people qualify, not a shortage of people willing to work.

Exercise 11. Read and dramatize the following dialogue.

 

A: Tell me please, why do we know much less about the distribution of wealth than we do about the distribution of income?

B: We know much less about it because the data on wealth holdings are not readily available. Indeed, most of the evidence we have on wealth distribution for the U.S. economy is based on work done in the early 1960s.

A: Subsequent calculations based on data available in 1969 provide essentially the same picture of the distribution of wealth. The top 0,5% of the population held about 23% of the wealth and the top 1% of the population about 30% of the wealth.

B: What is the situation in the U.S. economy concerning the effects of sex discrimination?

A: On average, working women earn only $ 0.70 for every $ 1.00 earned by working men. What accounts for this difference?

B: Two economists studied this question using data from the mid 1970s. At that time, the differences could be accounted for in the following way. First, the work history of women differs considerably from that of men,

A: Yes, it does. It's a fact of common knowledge that while most men enter the work force shortly after completing school and continue to work full time thereafter, women have more varied work experience.

B: The average white male has spent only six months out of the labour force, most of that time immediately after completing school; in contrast, 1he average white female takes almost a six-year break in mid-career, usually to raise children.

A: All of these and other factors combined still leave women with wages $ 174 lower than men.

B: What does this mean?

A: It suggests that markets do not necessarily reward workers just on the basis of productivity and that some sort of discrimination may exist.

Exercise 12. Make up your own dialogue using the following expressions.

 

median income to be rewarded

aggregate income to be headed by

in-kind transfer to be referred to

distribution of goods official poverty line

Exercise 13. Paraphrase the sentences using Subjunctive II as in the model.

 

EXAMPLE: A family is not in poverty if its income is more than one-half the median income.

If a family were in poverty, its income wouldn't be more than one-half the median income.

1. Individuals choose not to make changes in order to in­crease their earnings, so lack of mobility occurs.

2. They don't earn a lot of money, so they aregiven a cash transfer.

3. There is sex discrimination, so men and women don't receive the same amount of money.

4. People have nowide range of possibilities to obtain a job, so many families live below the official poverty line.

 

 

Exercise 14. Complete the following sentences.

 

1. If all workers were rewarded handsomely....

2. The transfer would be in-kind if....

3. If they had lower incomes....

4. A society would not make a decision to transfer income to the poor if....

5. If the distribution of income had been relatively stable....

 

 

Exercise 15. Translate into English.

 

1. Якби не бракувало мобільності, доходи різних осіб не відрізнялися б.

2. Якби прибутки розподілялися справді рівномірно, чи був би тоді сенс говорити про якусь групу працівників як таку, що живе в бідності.

3. Якби вони жили та працювали в більш розвиненій країні, вони мали б вищі прибутки.

4. Якби не було дискримінації за статтю, жінки отримували б таку саму заробітну плату, як і чоловіки, виконуючи однакову роботу.