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Essay On Wealth Inequality In America

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At the root of Democratic presidential candidate Bernie Sanders’ highly touted (and shouted) policies, from free college to an increase in the minimum wage, is the issue of inequality in America. Perhaps it’s no surprise that Sanders has seen great success on his message of fixing inequality in the United States, the gap between the wealthy and poor has been growing at an alarming rate. The focus tends to be on income inequality rather than wealth inequality. According to Google Trends, searches for “Income Inequality” significantly outnumber searches for “Wealth Inequality”, and have consistently done so since 2004 (Web Search Interests). Despite this, wealth inequality is a far greater problem than income inequality. Income inequality…show more content…
The Fair Minimum Wage Act of 2007 saw a 41% increase in the federal minimum wage over a two-year period, in Card and Krueger’s study, the minimum wage increased 19%. An increase to $12 would be a 66% increase, ergo explaining the need for it to gradually imposed. This increase, however, is not enough to be deemed radical enough that we cannot apply these studies to it. If the federal minimum wage to raised $12 over a period of 5 years, it would be an annual increase of 10.6%, a decline from the average of increases since 1961 which was 11.7% a year (It’s Time). Critics who support at $15 minimum wage instead of a $12 rate face a problem here. This rate “constitutes a wage increase of 50% to 100% in most places” (Holzer) and would not be categorized as a modest increase. Significantly, many labor economists, who typically support minimum wage increases, are opposed to a $15 on the basis that it would likely lead to an increase in unemployment (Holzer). Major cities such as Seattle, which has raised their minimum wage to $15 should do so when feasible to further reduce income inequality, however, it is not reasonable to expect places such as Mississippi and West Virginia to be able to afford such a significant
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