A Boost Across the Gap

The 1990s was a decade of unprecedented economic prosperity in the United States, but not all shared equally. The wealth of those at the top of the scale grew much faster than the income of those at the bottom. This is no reason to overturn a system that essentially gives the same opportunities to all. But it should spur the private sector, nonprofit organizations and the government itself--especially now when it is brimming with revenue surpluses--to find ways to give a leg up to those who started out with less.

The widening gap between the poorest 20% of U.S. families and the richest 20% is a recent phenomenon, and it represents a reversal of historic trends. For much of the 20th century, up until the mid-1970s, the income gap between the haves and have-nots narrowed. The current trend--although slowing in the last three or four years--is worrisome because it undermines social cohesion and fosters the conviction that the economic system does not work for everyone. What has historically tied the country together is the shared experience that everybody benefits, not that it works for some and not for others.

The causes of growing disparity are many and include social changes, among them the influx of unskilled labor from abroad, higher divorce rates and an influx of women in the work force. But more than anything else rapid growth of technology is causing upheavals in the labor market, putting a premium on skilled labor.

Improving workers’ skills is a way to allow more people to climb the income ladder. Governments have recognized that and are pumping more money into education, as are companies, which spend billions on training. Nonprofit organizations such as the United Way of Greater Los Angeles are redirecting their programs toward “lifelong learning.” In Los Angeles, 27% of the adult population does not read at third-grade level. What chance do these people have in an economy growing increasingly high-tech?

Better education, especially at the K-12 level, is essential to reverse the trend. That means not only better schools but also better training for adults. And that means building the community infrastructure--including day care and after-school care--to allow parents to go to work or switch to full-time, year-around employment. Building a more balanced society is a job for the government, the private sector and charity working in partnership.