In the past several decades, income inequality in the US increased more than poverty. According to data, poverty in 1960 is 23% where around 40 million people are described under poverty, but data collected in 2016 shows the poverty rate falls down to 12.3 % with 39 million poor people with an increased population from 1960. Apart from data, the main reason behind reduced poverty is an improved economy. There were more employed people working (around 2.3 million more full-time, year-round workers) as per U.S census data. An improved economy will increase the income, production, and income of households in the economy and this led to reduced poverty in the US over time.

But if we see the data, income inequality has been rising continuously since 1960, as the top 1% hold 17% of total wealth in the country, and in 2016, it will rise to 23%. The main reason for rising inequality is listed below:

1) Globalisation- Globalisation refers to the integration of economies and innovation in supply chains enabled the supply of goods and raw material cheaper than earlier. This will increase the income of the top income earners like factory owners, import agents while lowering the supply and income of middle and low-class people who provide the same goods within the country.

2) Education- As education is perpetually being costly in the US, it's been challenging for middle and low-class people to afford the special and unique certificates to gain expertise while top-class people will possess them easily and this will cause income discrepancy in the economy.

3) Skill-based technological change- Over several decades, there has been a significant change in terms of new technology and this will prefer more skilled workers over unskilled ones and most skilled labour with expertise and skilled knowledge are from the upper class. Hence, this will also increase the gap between income equality of the US.