Economic Inequality And The Consequences Of Poverty

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 (“Distribution of U.S. family income”, 101). The middle class should be much more noticeable with the upper and lower

The view that the rich get richer and the poor get poorer has been heard repeatedly in reference to America’s income inequality. Though ironic, it comes as no surprise that America, a continent that easily trumps other countries in terms of wealth would be affected by the issue of poverty at such high levels. While much has said regarding the poverty levels, many economists, educators and scholars feel that the income inequality in America may be the reason why it is difficult to live and maintain a middle class lifestyle or to rise out of poverty into the middle class in the current economic state. With this in mind, the only way America, has a chance of lessening or eliminating poverty altogether is by understanding how it exists.

“Poverty is the worst form of violence.” Mahatma Gandhi’s words still ring true in today’s society. Poverty is nothing to sweep under the rug or put on the back burner. While many statistics state that poverty is decreasing, other sources state the opposite. Poverty is a hot topic in the U.S., foreign countries, and speaks true about many genders, ethnic groups, and children.

The higher the difference in inequality, the weaker the econom actually becomes (Lowrey 15). The economy reaches an unstable point and people tend to become mistrusting with their own government. The inequality "blocks opportunities at the bottom and shelters those at the top" (Esping-Andersen n.p.). In other words, it is extremely hard for people who live in poverty to work their way up the economic system and have better opportunities and chances for themselves to take. The people that are already rich and living life with no problems, do not even have to waste a second thought on what would happen if they ran out of money, because they know for a fact that it would never happen. Also, the economic struggles would lead to slower economic growth and slower job creation (Lowrey 15). If people do not want to take the jobs because they do not see a point, people are going to start shortening jobs and limiting the amount of people that they hire. Political instability, violence, and economic destruction will also start to take effect, even if it is not noticable

politicians to put more emphasis on the power of education and support funding for it. By taxing the wealthy at a higher, but still fair rate, and putting said money into funding for education and public schooling, the U.S. will be able to enlighten more people in new fields of work, and this education will create jobs for those who are typically used to labor demanding work. Public funding in these programs will ensure education and healthcare to all, no matter how much money they make. Also, in the case of the current day United States, it is a matter of ensuring that politicians make these changes at federal levels, because essentially, that is the only way that a difference will be made. The current U.S. political system is dominated by money and this just goes to show that income inequality today has increased in ways that threaten economic growth, and even the health of U.S. democracy (Tyson). If United States politicians fail to acknowledge the rising gap between the rich and the poor, the inequality will ultimately keep rising, potentially leading the United States into a recession. By simply ignoring its existence, U.S. leaders and policymakers are essentially allowing the future of the nation to be jeopardized, with regards to social and economic

Since the early 1980s in the United States, there has been a big push advocating for tax cuts benefitting the wealthiest Americans at the expense of investing in education, infrastructure, child care, and income supports that would help raise well-off children to be productive adults. As a result of this, the gap between the rich and the poor has grown wider, making the wealthy more willing to sacrifice overall economic growth in exchange for the larger share of money that they are getting for themselves. This has led to severe income, racial, and poverty inequality in the United States and creates an inequality trap because as the rich get wealthier, they favor policies that earn them more money and power at the expense of the low-income workers education and well-being.

In the book, Poverty and Inequality, it is noted that many people look at the economy and poverty status in the 60s to gauge how to solve poverty today (1997). The sixties saw the longest and strongest economic growth in US history. The unemployment rates went from twenty two percent to thirteen percent. The economy grew 4.3 % every year. This leads many economic analyses to tie the bustling economy with the declining poverty level. The eighties saw two short recessions before the second longest and strongest growth in US history. The unemployment rate went from just over ten percent to just over eight percent. It is important to note that the poverty rate only fell slightly during this period. By 1990, the poverty rate

As we all may know or have come to assume. Poverty is an issue; an issue that may or may not ever go away. Why? Because it is a clinging, unrelenting issue that many spokespersons believe is caused by inequality in America. Equality means to be treated equally, especially when regarding things like status, rights, and opportunities. By inequality, i’m addressing and bringing in issues like income inequality, and those who don’t receive certain educational benefits that a rich or middle-class person can receive.

“Income inequality has no necessary connection with poverty, the lack of material resources for a decent life, such as adequate food, shelter, and clothing. A society with great income inequality may have no poor people, and a society with no income inequality may have nothing but poor people” - Robert Higgs. When people think of income inequality they picture poverty and people not having basic necessities. However income inequality is not just a connection to the poor. Income inequality is strongly affected by education attainment, technology, and gender.

Economic and income equality have risen significantly in the United States over the years. In 2013, the top 1% accounted for roughly 20% of America’s income, before taxes. According to the Congressional Budget Office, the average income of the top 1% of America’s population has “grown by 275 percent between 1979 and 2007,” even after taxes. In stark contrast, the middle class has experienced growth of about 40 to 60% and the lowest income population has only experienced growth of about 18%. This resulted in the richest households nearly tripling their share of the country’s income while the majority struggled to keep up.

Wide income disparities affect a countries economic growth. The poor aren’t able to help generate new growth and opportunity to spark markets to grow because

There are a number of reasons for studying the economic consequences of income inequality (see~\cite{dabla2015causes} and~\cite{bertola2014income}). Inequality of outcomes and opportunities in an intergenerational context is discussed by~\cite{black2015poor}, where they give evidence that wealth begets wealth. Inequality of opportunities can result in large social costs, as it can compromise individual's educational and occupational choices.~\cite{stiglitz2012price} also mentions the incentives people have to divert their efforts toward securing favored treatment and protection under such unequal society, resulting in corruption, nepotism and ultimately weakening the confidence in institutions. Besides, empirical evidence sugests there are

Poverty is “the state or condition of having little or no money, goods, or means of support; condition of being poor” (Dictionary.com, 2017). Based off this definition poverty is a condition that can cause a cascade of cause and effect actions that is detrimental to families and individuals both physically and mentally. Haan, Kaplan, & Camacho (2017) completed a study on the correlation between social and economic status and health in adults in Oakland, CA. They found that the lower the socioeconomic class the higher incidents of diseases and deaths related to chronic diseases (p.1161-1162). Just being without money or little money was not the only indication of health indication, a person living in an area with higher poverty issues

The origins of poverty and inequality can be traced back to the time of slavery and greed that this country encouraged. Some Americans, including African Americans, experience significant hardships, including temporary food shortages, inadequate housing, and unfair treatment, but these individuals are a minority within the overall poverty population. Poverty remains an issue of serious social concern, but accurate information about that problem is essential in creating a solution. This kind of poverty and inequality is rooted in the nation today by blatant segregation, discrimination, and immorality among individuals of higher power.

Many Americans believe that America has one of the most powerful economies that is involved in the global market and the best average living standards. Since the creation of the United States it has been known as the land of endless opportunities, regardless of social or economic classes. Under this philosophy, all citizens should have equal rights and given equal opportunity to progress in the workforce. However many Americans are living full lives and do not have financial obstacles to get over. Even so, millions of Americans are still faced with poor living conditions and struggle with providing for their families basic needs. Whether Americans believe poverty and inequality exist in America exists or not, the authors in three different articles:” Culture of Success” by Brink Lindsey, “A Great Time to Be Alive?” by Matt Yglesias, and “Born Poor and Smart” by Angela Locke, and “The War Against the Poor Instead of Programs to End Poverty”by Herbert J. Gans, shared ideas on how to help fix the problems of the impoverished community and address the cause of the problem. The four articles also explain different biases that the impoverish have to endure everyday.