American workers do not have the ability to care for their family ends up living in poor neighborhoods. Living in poor neighborhoods also leads to lack of resources such as good quality education, high income jobs and lack of healthy lifestyles. “…studies have found that low-wages have particularly harmful effects on families, children, and workers’ health, which, in turn, are additional barriers to workers getting better jobs.” (Yarrow, 2015) Low wage workers with families may end up in divorce due to the inability of caring for each other and stress that develops while in poverty. Secondly, Parents who have children living in poverty will most likely end up living poverty in their lifetime. The children of low wage workers will not have the ability to attend a good school to gain higher education similar to their parents. Therefore, these children will grow up and may find similar job position that will also have low wages due to the lack of education and skills. These families fall under low class or underclass within the American society, “underclass, refers to those in the lower class who have access only to the most insecure and poorly jobs.” (Hodson, R., Sullivan, T.A., 2012, pg. 78) The low income family will continue to live in poverty because the job mobility will be a challenge. There is a significant amount of inequality that low income/low class workers are experiencing in this modern …show more content…
In order to reduce labor and service cost, companies are choosing more workers outside of the United States to work for their company. Secondly, companies are hiring both skilled and unskilled workers while offering low wages. “One reason wages remain low in these nations is that workers there lack trade unions and have limited ability to strike for higher wages.” (Hodson, Sullivan, 2012, pg. 395) Where as in the United States, workers have the ability to go on strike to get better wages or fair treatment due to protection from trade unions. Companies are not protecting themselves from trade unions and having to pay additional taxes to keep their company running. For example, companies will choose to hire a customer service agent in another country and offer much less than American minimum wage. Secondly, these workers will not have the ability to go on strike to request for higher wages. Globalization is also hurting the United States economy due to competitions from products made from other countries. For example, since of large discount retailers such as Walmart had opened their business, small business was forced to close their services due to heavy competitions with discount retailers. Closing business also affects their employees due to job loss.