Estee Lauder Essay Example for Free

Estee Lauder Essay I. BACKGROUND OF THE COMPANY Està ©e Lauder Companies, Inc. founded by Estee Lauder and her husband Joseph in 1946 started by selling four skin care products invented by her chemist uncle in beauty salons and hotels. The enterprise established their first department store account with Saks Fifth Avenue in New York in 1947. By 1960, Estee Lauder was an international manufacturer and marketer, selling their products in the famous Harrods Department Store in London. In the subsequent years, they opened outlets in Central America, Denmark, Hong Kong, Italy, Spain, Sweden, Belgium, New Zealand and Switzerland. Today, Estee Lauder markets its products through different brands in more than 140 countries and territories. It also holds the global license for fragrances and cosmetics. The company consists of a collection of prestige brands targeted at a diverse selection of consumers. The group’s portfolio of brands includes the most recognized labels for mature customers (Estee Lauder, Clinique, Prescriptives, Aramis, and La Mer), eco-correct labels (Aveda and Origins), as well as hip labels (M.A.C., Bobbi Brown, Tommy Hilfiger, Donna Karan, Stila, Jo Malone, Bumble and Bumble, Kate Spade, jane, Darphin and Smashbox). The Estee Lauder Companies is an organization which engages in the manufacturing, marketing, and sale of several beauty products. The company is divided into four sectors, skin care, makeup, fragrance, and hair care. Estee Lauder is based in New York City and currently employs 32,300 people. The products are mostly marketed through department stores, specialty retailers, upscale perfumeries, pharmacies, salons, and spars. Additionally products are sold at company owned free standing stores and through e-commerce in selected countries. The company is still controlled by the Lauder family, which controls about 70% of the voting shares. Estee Lauder’s grandson is currently the chairman of the board of directors. II. STATEMENT OF THE PROBLEM This case analysis attempts to determine the most effective strategies Estee Lauder must use in the Philippines. To determine the main objective of this case the researchers focuses on the major components of the case analysis which are as follows: A. Market Analysis 1. To what extent will the Filipino consumer will support or use Estee Lauder products? 2. What are demographic profiles of the target users of Estee lauder in the Philippines? 3. What are the information needs of the Filipino consumer to divert their patronage to Estee Lauder products? B. Technical Analysis 1. Based on the needs of the Filipinos what would consist the basic collection of Estee Lauder products that should be put up into Philippine markets? 2. Where the possible locations that will effectively inform and market to the Filipino consumer the Estee Lauder products? III. OBJECTIVES OF THE STUDY The primary objective of this study is to determine the most effective strategies Estee Lauder must use in the Philippines using market analysis and technical analysis. A. Market Analysis 1. To determine the perception of the Filipino consumer on Estee Lauder products versus other beauty product competitors. 2. To verify the demographic profiles of the target users of Estee lauder in the Philippines. 3. To determine the information needs of the Filipino consumer to divert their patronage to Estee Lauder products. A. Technical Analysis 1. To enumerate the possible collection of Estee Lauder products that should be put up into Philippine markets? 2. To plot possible locations that will effectively inform and market to the Filipino consumer the Estee Lauder products. IV. INDUSTRY ANALYSIS A. Analysis of the Macro environment 1. Demographic Environment In the next 20 years, there would be an expected growth of sales of cosmetic products because roughly 70 million people around the world will reach an income that will allow them to purchase such kind of product. In the next 40 years, aging population in the world will multiply by 2.5 times. With an increase in the world’s aging population, life expectancy would improve too. 2. Social and Technological Environment Social environment is a broad concept which may be affected by all factors to be considered in making analysis in the Macro environment of the company. There is a significant factor that may affect sale of products easily. Majority of the Filipino consumers especially those who live in the National Capital Region may support products easily because of the practice called mental colonialism. What is imported is better. Of course it is! Filipinos tend to patronize imported products most especially those that are known for years. In fact, products made by the Estee Lauder Company are sold in some known malls all over the Metro Manila region. May it be cosmetics or fragrances; consumer will buy it as long as they have the money. Social media affects Filipinos perception about a certain thing. If there is one thing that Estee Lauder to focus on in trying to caught more attention from Filipinos, it shall be in the social media. I have noticed that they cannot be seen in the TV commercials, radio stations or even print ads. They appear in print ads but rarely with the local magazines. Since Estee Lauder is based in London, cosmetics are mostly designed for the white people. This company should create cosmetics that are compatible with the Asian skin especially to the Filipinos. Filipinos are fond of social networking sites which may be an advantage of Estee Lauder to advertise products internationally easily and can hear feedbacks with just a click. Since Estee Lauder prices ranges from mid-high to high, not all Filipinos can afford to have a single product on their pouches. Mid-range to elite people may patronize the product continuously but not those who are tight with the budget. Filipinos should be aware that though it may be a little expensive, the bill spent is worth every product. It has been a practice that those who can’t have those products, shift to an imitation of the original. I believe, these products should be innovated even more where in all Filipinos can afford to use Estee Lauder products in their daily routine. They should know the big difference between the original and the imitation. What is it? We should see it ourselves. 3. Economic Environment All sectors of the cosmetics industry showed growth in the Philippines in 2008/2009, according to Euromonitor. Beauty and personal care sales were US$2.26bn, a 2% rise year on year. The highest growth was in colour cosmetics (7.9%), skin care (6.3%), deodorants (4.3%), hair care (4%) and fragrance (2.9%). The mass market is dominant in the Philippines, accounting for 96.3% of all bath and shower sales. As elsewhere in the southeast Asian region, the major players are foreign multinationals – Unilever, followed by Procter Gamble, L’Orà ©al, Està ©e Lauder and Shiseido, according to the trade association Chambers of Cosmetics Industry of the Philippines (CCIP). In the beauty and personal care sector, Colgate-Palmolive is the third largest company, behind Unilever – who in 2009 adopted a strategy of offering smaller-sized packaging, targeted at middle and lower income consumers – and Procter Gamble, according to Euromonitor. The economic slowdown in the Philippines has prompted growth in direct selling. Companies such as US-owned Avon and Philippines-based Ever Bilena Cosmetics adopted commitments to boosting revenues through discounts and tapped into a female labour market keen to increase household incomes. The market appears to be remaining vibrant. Between January 2009 and January, 2010, 511 new cosmetics products were launched in the Philippines, according to market research group Mintel – the highest number (176) was in skin care, followed by soap and bath products (131) and hair products (108). B. Competitive Analysis 1. Intensity of the Rivalry Among Existing Competitors Està ©e lauder’s brands face great competition in the cosmetics industry. Internationally it competes with Loreal, Avon, Revlon, Elizabeth Arden and Bare Escentuals. Though there are a lot of competitors in the industry, Estee lauder consists of various products that competes on each of them. Està ©e Lauder’s all-natural products face competition from Bare Esentuals. Its mid-end products compete against Revlon, Avon, and Elizabeth Arden. Additions to these competitors are the local companies in the Philippines like Ever Bilena and Careline. Rivalry intensifies because there are a lot of companies that are in to beauty products. Competition is more intense because of the local brands that use price cuts or other marketing tactics to boost unit volume. And because most Filipinos are thrifty, rivalry is stronger when the cost incurred by customers to switch their purchases from one brand, like Estee Lauder to another, like Careline, are low. Competitors might get a close competition with some EL products. But because of its variations of beauty products Estee lauder possesses, it still rises above the others internationally. Its professional makeup brands, M.A.C. and Bobbi Brown face significantly less competition because of their target marked of specialized clientele. In more than 25 years, Ever Bilena has become the number one Filipino brand. It has penetrated an industry dominated by global giants, and have made products best suited for our Filipina consumers with international quality at affordable price. Ever Bilena and Careline cater products that are way too cheap compare to EL and other international beauty companies. Ever Bilena and Careline target market are different from the target market of EL. They target teenagers who need beauty products for their everyday use. It outwits EL by selling their products in a very low price. Our country is considered as third world so along with that it gives EB and Careline the edge among competitors because of the market it targets, basically the Masa. Estee lauder is known for its reputation and expertise in beauty products. EL has been in the industry for years. They have gained loyal customers as time pass by, and as quality of their products improved along with it. They got an edge among other competitors just by the name it carries. But in the Philippines, those who cannot afford high-end beauty products will definitely not patronize Estee lauder products. It’s a really tough completion EL have in the Philippines, but it still stand a chance in competing with other local products because of the colonial mentality of the Filipino, love for foreign products. 2. Threat of the New Entrants Locally, the barrier is high but we can say that there is a great chance of any other aspiring businessman to enter into the industry. Economies of scale act as a great barrier to entry, and with EL, its sales for the past few years. The Estee Lauder Companies Inc. today reported a strong financial performance for its fourth quarter and fiscal year ended June 30, 2012 based on the financial statement posted via internet. In line with these facts gathered, we can say that the stability of the company is very strong that becomes a barrier for new entrants. Its capital requirement established in the industry by Estee Lauder is so large that it becomes a discouragement for the new companies planning to enter the industry. Another barrier is the Estee Lauder product differentiation. It offers different products that create a barrier by forcing entrants to incur expenditure to overcome existing customer loyalties. New entrants must spend a great deal of money and time to overcome this barrier. Filipinos will always patronize products that are affordable and with good quality. They can enter the industry by taking the form of aggressive price-cutting and increased in advertising. Estee Lauder is considered as high-end beauty products for the Filipinos. Only few can afford to buy fragrances, skin cares and make-up Estee Lauder offers. If the new entrant penetrates in the market by having the strategy of offering its products in a relatively low- price, it will definitely boom Filipino consumers. Watson beauty care, easily took Filipino patronage by selling different variety of products in a low prices. The barrier is really high when it comes to reputation and quality. But in the Philippines, the door in entering the industry is very much open to those who are willing to produce quality products in affordable prices. 3. Bargaining Power of the Buyers The consumers can bargain in this industry simply because they are the buyers purchases are a sizable percentage of the selling industrys total sales. The products are unimportant to the quality of the customers product or service. The item being purchased is sufficiently standardized among sellers that not only can buyers find alternative sellers. 4. Bargaining Power of the Suppliers Suppliers do not play a big roll and have little bargaining power in this market. Big brands like Està ©e Lauder develop essential ingredients in their own RD department, and only outsource basic and non-value-adding chemicals and packaging. 5. Threats of Product Substitute As a rule, the lower the price of substitutes and the higher the quality and performance of substitutes, the more intense are the competitive pressures posed by substitute products. We Filipinos go for the ones that are almost free of charge that gives us the same result that a costly product offers. We are the most resourceful race. Filipinos are naturally creative and imaginative people. Filipinos can invent a lot of things to substitute any products just so they can save money. We are also fan of herbal products which is the result of our being authentic Filipinos. Along with these ideas, the threats of product substitute are very high in the Philippines. Though Estee Lauder produce a brands, Aveda and Clinique, which focus on producing products made with natural ingredients and anti-allergens, many will still go for the naturals, literally, to make their skin or hair really good. V. ENVIRONMENTAL ANALYSIS Threats: * Intense competition in cosmetics has increased and market initiators with quality providers are a serious threat to the firm. * New entrants, even though the market has considerably mature in the sense that it has captured customer loyalty, but there is always room for improvement in this field. * Counterfeit commodities affect the sales of the branded commodities. 9%, according to the Global Congress on Combating Counterfeiting, of all the world trade comprises counterfeit goods. Opportunities: * New markets are emerging in various countries where the firm can inject its products, such as India, China (known to be the 2nd largest cosmetics market in Asia) etc. * Markets where wealthy rule is also a good opportunity to tap in because of the tendency of the wealthy to own luxury commodities. * Many nations are growing to be beauty conscience every passing day; the firm will do well in order to tap-in without any delay and initiate in order to get customer loyalty attached to its products. * Diversification of the distribution channels. * Expansion to global markets, worldwide. Weaknesses: * Lack of concentration regarding customer value (Client.) * Profit oriented (loses sight of the customer) * Weak Liquidity Position (decline in the firm’s liquidity in the past few years.) * Distribution Network’s lack of reach to other viable markets. * Declining operating income in various market marks the weak penetration of the products in those specific markets. Strengths: * Strong Brand Reputation (The brand is associated with luxury quality. Also has a strong brand portfolio). * Research Development (Role model and leader in identifying consumer needs, and preferences and developing products accordingly). * Strong Distribution Network (The products are sold to a limited stores that compliments the image of the brands such as department stores, upscale perfumeries, specialty stores, professional hairdressers etc. specially in U.S.) * Vigorous Revenue Profitability (Net Earnings for fiscal year 2010 $478 million while Net sales were $7.8 billion.) * 31,000 employees working under its umbrella, full-time. (approximate value) * Products are sold in more than 150 countries. * Powerful marketing techniques used by the firm: Free Gift, Gift-With-Purchase, Makeup Artist Events (for trying out the new products) etc. * Operations and cost maintenance with the firm holds a strong positive attitude in the long run. * Regulations are increasing due to the voicing of different groups about harmful chemical ingredients in cosmetic products. VI. GENERIC STRATEGIES Differentiation â€Å"Differentiation is a competitive business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firm’s products and services† – Charles W.L. Hill, Gareth R. Jone No other companies has done better than Estee Lauder company. They are already on top but the concept of being unique or different is far more important today that it was years ago. The company should consider strategies in differentiation. First, they can use quality/price differentiation for Estee Lauder. The company can improve more on the quality of their cosmetic products so that customers will build loyalty to the company. Next, said company could use product differentiation by adding more features, specifications, design or the image, packaging and benefits on their products. Also, they can use differentiation by repositioning. To regain its position as a premium product, Està ©e Lauder must reposition itself. A successful repositioning would require the Està ©e Lauder brand to develop a clear brand image and provide its customers with something that is unique. There are a few possibilities that Està ©e Lauder could take; Està ©e Lauder could emphasize the natural ingredients in a product, the romance and sexiness, or the technology involved in a product. Another possibility for Està ©e Lauder would be to create a new brand image through the release of a sub-brand. In considering each of these strategies, it is also important to take into account how Està ©e Lauder’s competitors will react. Natural Ingredients. Currently, Està ©e Lauder’s customers are not interested in the naturalness of the ingredients used in Està ©e Lauder skincare products. This is evidenced by the fact that Està ©e Lauder does not promote the natural ingredients and yet they still have customers. To redefine the brand as one that emphasizes natural products might ostracize the current Està ©e Lauder customers. In addition to this, the natural ingredient skincare market is not high-end. The main competitors in that market are Biotherm and Clarins. These brands are well recognized by those customers that place natural ingredients above technology; however, they cannot demand as high a price as Està ©e Lauder for their skincare products. This would not be a wise move for Està ©e Lauder. Romance. Another option for Està ©e Lauder would be to position the brand so that it is appealing for those women who desire the romance and sexiness that is associated with cosmetics. This positioning strategy would place Està ©e Lauder in direct competition with Lancà ´me. As Lancà ´me is a French brand, it already has an advantage over Està ©e Lauder as France is widely associated with romance. The Està ©e Lauder brand would have to work very hard to overcome Lancà ´me’s natural advantage. A first glance comparison of an Està ©e Lauder and a Lancà ´me booth at Macy’s will show that Està ©e Lauder’s image is lacking the luscious, red lips of Lancà ´me. Instead, Està ©e Lauder’s image is of the elegant Carolyn Murphy and Liya Kebede. Their images are beautiful but distant and lacking passion. To rework this image would be extremely difficult. Direct competition with Lancà ´me would also be unfavorable. By more heavily emphasizing its technology, Està ©e Lauder also has the opportunity to occupy the trendy end of the technology market as opposed to being a complete dermatologist-brand. This is due to the elegance and fashion that is associated with Està ©e Lauder. Presently, the bestsellers in the skincare market in general are anti-aging formulas. In the growing Asian skincare market, the bestsellers are anti-aging and whitening formulas. Both these formulas rely heavily on technology, so it is a good time for dermatologist-brands to enter the market. By occupying the trendy end of the technology market, Està ©e Lauder will have a good position against these strong new entrants. VII. ALTERNATIVE COURSES OF ACTION Estee Lauder can implement Horizontal Integration where the company will buy another company. If they really want to increase the sales in the Philippines, they can buy local brands and kill the competition. VIII. RECOMMENDATION/ CONCLUSION Based on the data gathered we can conclude the following: 1. Filipinos are aware of Estee Lauder and they consider this as a very high-end product. They patronize competing product that offers more reasonable price. Estee Lauder should formulate products that they can offer to Masa, a product for Filipinos. Same as to what L’Oreal did in the Philippines, when they introduced shampoo and conditioner that is close to the price of local brands. 2. Estee Lauder’s target market is middle-aged female whose buying power is relatively secure and thus are less price-sensitive. Filipinos are price sensitive, with that they should formulate strategy that is similar from the first conclusion. 3. Filipinos need lots of information about beauty care. We should be informed about the importance of Estee Lauder’s product, and what are the difference between their product to other companies and substitute product we are using. They should increase their advertisements in the Philippines. Technically, they are so known in the industry that they don’t need any advertisement, but Filipinos are fan of idiot box that they rely mostly to what they see on TV. 4. The collection should consist of products that can be offered to middle market. It should be affordable and with good quality. The collection should be focusing on whitening skin and affordable cosmetics. 5. Aside from department stores and exclusive beauty shops, Estee Lauder should try putting up a place for their products in drugs store like Mercury and Watsons, which include every product they offer. They are already doing this but just to chosen products. They should start advertising their cosmetic products to these places where people have easy access and this will help people to get familiar to Estee Lauder’s product.

bible women :: essays research papers

Rebekah   Ã‚  Ã‚  Ã‚  Ã‚  The values in Genesis are disobeyed by yet another woman who does not conform to the female model of a fertile mother. While fertility is an overriding value in god’s human construct that women in Genesis threaten to undermine women also obstruct the â€Å"natural† course of history which god has set in motion as part of his ideal world. After god reconstructs the world through Noah and then Abraham, the divine element withdraws from the world slightly, and a natural historical course begins to play out through the momentum that god has initiated. The incident in Genesis in which a woman interferes with this momentum involves Rebekah, who intervenes on behalf of her second born son, Jacob. As a result of Rebekah’s manipulative orders, Jacob, the younger son, inherits the divine blessing from Isaac, though it is clear from the text that Jacob’s brother, Esau, had been Isaac’s favored child. Rebekah’s actions are rebellious because they result in the violation of the law of primogeniture that seems to have been the standard practice of inheritance in the book of Genesis. And by reassigning the inheritance, Rebekah threatens to destroy the course of events god has anticipated en route to the creation of his select nation. While the text shows that Rebekah had received a prophecy that â€Å"the older would serve the younger† (25:23), whenever women in Genesis take assertive actions that ramifications, conflict always ensues. Just because Rebekah received a prophecy, there is no indication that sh e was in any position to actively seek its fulfillment. Jacob, as a result of his mother’s initiative, is forced to flee his home for fear that Esau will kill him. The hate between the brothers endures, and just as Sara’s infertility caused family conflict, Rebekah’s actions likewise cause disruption in the house of Isaac and its descendents. Unlike the instances where the men in genesis take the fate of their family’s lives into their own hands under open direction from god, the rare occasions when women, such as Rebekah, take aggressive action, the result is battles and feuds. As in the case of infertility, a women’s inheritance with the divine scheme can be seen as a multiple threat to the thematic framework of Genesis. Rebekah takes assertive, independent action with regard to her family’s development, and this action clearly crosses over the rigid boundaries of the prescribed female role.

Analysis of Language Essay

â€Å"Keyed in† published by Internet blogger Voxi is a persuasive article regarding the technological boom being experienced by not only today’s youth but by society in general. Published on May 23, 2009 on website Ctrl Alt â€Å"Keyed in† Voxi, contends that society and its members should herald the implementation of new technology and welcome it with open arms, contrasting the internet with great historical discoveries such as Darwinism and the reorganisation of the cosmos. The title itself has a double meaning, the first and most obvious of which is the literal keyboard associated with technology and the second refers to those who are keyed in to an ever-changing society and willing to move with it as opposed to be left behind. The article begins with a non-confrontational tone however throughout Voxi begins to show a more compelling tone. Accompanying Voxi’s article is a picture of a human head withholding a microchip that projects multiple layers, th e main point of this is to make the reader think about how technology has been embedded into the core of society and implemented into every layer of the world today. Voxi’s contention is pro digital technology and is this is strategically withheld until the 5th paragraph so that readers will read on, curious of the writers contention Voxi continuously simplifies and exemplifies his arguments through metaphoric language, allowing for readers to fully comprehend his opinion whilst addressing the additional attention required. By contrasting people who embrace technology with â€Å"the grit [of] an oyster†, readers are initially made to regard individuals who accept change as stubborn, unwanted members of society. However Voxi diverts this analogy, positively presenting these â€Å"gritty people† by explaining how oysters â€Å"produce pearls†. Readers are allowed to distinguish the relationship between the beauty of pearls, with the accomplishments of those who wish to make â€Å"things better†, evoking gratitude towards these individuals who â€Å"ask questions†. Through the inclusion of television series â€Å"The Inventors†, Voxi aims his opinion piece towards those who enjoy witnessing the progression of technology into exciting ventures. By correlating the â€Å"gritt y people† with individuals who eventually enter the show, Voxi aspires to present readers with members of  society who wish to improve quality of life. As readers witness the potential benefits of change in their lives, they feel inclined to accept the alterations in all forms, including technology. Voxi introduces readers to the concept of beneficial change prior to his contention of digital technology being a great opportunity for humanity, as a way of creating susceptibility within readers towards accepting alterations in life. The writer promotes the â€Å"digital revolution† through a quick succession of psychological benefits, in that humans will â€Å"solve the riddles of the universe, find cures faster [and] find ways of preserving the planet†. By presenting a promising future, readers are encouraged to embrace such hope and reject the â€Å"boundaries of darkness†. Through using the comical term â€Å"homo supersapien†, Voxi introduces readers to a more relaxed aspect of his opinion piece, using a less eccentric tone to formulate the possibility of an advanced race of humans. The writer further explains how this superior human species will be capable of â€Å"ending war and violence†, exciting readers to the prospect of world peace. By expressing an aspect of world culture wished by all members of society, Voxi instruments his argument to appeal to reader’s humanity. However Voxi also notes to include the flaws in his argument, through the inclusion of a podcast which consist of the negative attributes associated with technology, such as â€Å"the digital world is a world†¦where nothing has meaning†. The podcast itself is efficient through repetitive language in â€Å"a world†¦Ã¢â‚¬  so as to emphasise the significance of technology on society. By demonstrating that he is unbiased towards the subject, the writer positions readers to be more accepting of his contention as they are exposed to both aspects of the debate, and so are allowed to establish an opinion on the issue themselves. By revealing both facets of the dilemma, Voxi gains readers trust as they are not mislead or withheld from information. The fear of privacy invasion is also addressed, in that Voxi offers relatively simple solutions to an initially complex problem. As a major concern in the development of technology is privacy issues, Voxi explains how â€Å"you can protest† and â€Å"get them removed† if worried. By confronting the  issue and proposing an answer reader’s trust in the writer is reinforced, as he has for the second time confronted a flaw in his argument. Voxi capitalises on this technique by proceeding to include the rhetorical question, â€Å"why wouldn’t you want it in your life?†, so as to impose a one-directional response from readers who proceed to feel pressured to comply with the writer’s contention. Voxi repeats this methodology when addressing the concerns of older readers, when he asks â€Å"What’s there to be afraid of?†. By yielding no obvious response, these individuals are inclined to consider Voxi’s answer and consequently accept it. The writer alters the form of writing to be more personal, by noting that â€Å"hot air balloons are always†¦looking into my windows too†. This is so as to subdue reader concerns for safety in light of technological advancements, by reminding them that he too is an ordinary member of society. By expressing his contempt attitude towards the risk involved with â€Å"digital revolution†, concerned readers are comforted and are less inclined to oppose the writer. Voxi later described individuals who reject technology as â€Å"losers†, implementing a direct attack on people who oppose his contention. Such action is done so as to direct readers to feel part of the majority, playing on the instinctual desire of humans to belong. The strategic placement of this assault at the conclusion of the opinion piece, infers that this last technique is aimed towards readers who are yet to comply with the writer’s argument. Through both inclusive and attacking language, the writer evokes compliance from readers, by allowing them to relate to him and feel pressured to accept the contention. By including flaws the writer gains reader support as they are not mislead and denied information, further reinforcing the argument that the â€Å"digital revolution† should be embraced, and without it you won’t be â€Å"in touch and connected†.

Income Inequality and Society - 1028 Words

Income Inequality’s affect on Society Income inequality is on the rise and it is evident in most cities throughout the United States. There are individuals with six to seven figure incomes and then there are individuals whose income is just enough to get by. The middle class is not as prominent as the upper and lower class. This should be the other way around. There should not be so many cities with very wealthy neighborhoods right next door to low class, rundown neighborhoods, with little middle class households. Digging deeper, 47.6% of the money in the United States belongs to individuals that receive $98,200 or more (â€Å"Distribution of U.S. family income†, 101). The middle class should be much more noticeable with the upper and lower†¦show more content†¦Putting a band-aid on this issue would not be something that just one person could do, due to checks and balances, because if the president proposes something, chances are it will be beneficial for one s ide and worse for the other. That other side, would most likely oppose it and it would not get past congress. â€Å"Congress has cut taxes on high incomes repeatedly† Robert Lieberman stated â€Å"and has relaxed the tax treatment of capital gains and other invest income, resulting in windfall profits for the wealthiest Americans† (Lieberman). Taxes are taking away the lower class’ money and making them even poorer, while the automation of industrial jobs are making the rich even richer and taking jobs from the poor. It would be much more logical if a law was put into place restricting the automation of industrial jobs. Although not one person alone can change the income gap, there are little things that could lessen the income inequality and hereby create a larger middle class . Feeding off of this, there are various ways the income gap can be changed. Bill Ryan talks about how due to robots and outsourcing of our blue-collar jobs, there are no real middle clas s jobs anymore. He also mentions that one thing that could be done to limit this is to make some kind of law preventing the outsourcing and the use of robots in middle class jobs.Show MoreRelatedWhy Is Income Inequality an Important Issue for the Chinese Society and Its Future Economic Growth?2192 Words   |  9 PagesWhy is income inequality an important issue for the Chinese society and its future economic growth? Introduction Nowadays, China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9.7% per year in average since 1978, which the year of Chinese â€Å"open door† politic founded. 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Poverty Primarily, a simple definition of povertyRead MoreInequality in Social Classes1668 Words   |  7 PagesImagine living in a society full of equality, where everyone would have the same income, house, and social class, in other words a ‘perfect’ world, free of competition, greed, classes, and more importantly inequality. Unfortunately, living in classless society falls under the category of a utopia, as long as greed exists in the heart of society, inequality and the division between classes is not going to end. As Mary Douglas once stated, â€Å"Inequality can have a bad downside, but equality, for itsRead MoreIncome And Social Class Inequality1281 Words   |  6 PagesINCOME AND SOCIAL CLASS INEQUALITY IN AMERICA This paper will review and analyze the relationship between income inequality and society, and how social class brackets came to exist. We will also cover the factors that contribute to the downward mobility experienced by the middle and lower-class members of society in America. â€Æ' There is a very close relationship that exists between income inequality and social class. Many families experience set-backs as a result of the growing income inequalityRead MoreWhy Does Income Inequality Exists?1442 Words   |  6 Pages- - - â€Å"WHY DOES INCOME INEQUALITY EXIST?† Submitted to: - Submitted by: - - - - 4. Why does income inequality exist? Income inequality, also known as economic inequality or wealth and income differences typically refers to inequality among individuals and society, but it can also refer to disparity among countries. There are many reasons for this phenomenon to happen within the societies, most of them are often inter-related. However, we could say that the most important