Examples Of Income Inequality

People are still living on $2 a day here in the United States. As one of the wealthiest countries in the world, how is it possible for people to live with this little amount of money? I know that I cannot. In $2.00 a Day, Jennifer Hernandez, a single mother with two kids, is a person who lives on $2 a day as she tries to survive and support herself and her kids in the collapsing economy. The minimum wage job for cleaning houses reinforces the cycle of poverty that Jennifer and her kids live in. This cycle of poverty reveals that there needs to be major changes to the economical infrastructure of the United States since the poor cannot get themselves out of poverty even though they actively look for work or have a job.

Along with globalization market forces has had the greatest impact on income equalities in the United Sates. Thomas Piketty says that “by definition, in all societies, income inequality is the result of adding up these two components: inequality of income from labor and inequality of income from capital. The more unequally distributed each of these two components is, the greater the total inequality ... [a] decisive factor is the relation between these two dimensions of inequality: to what extent do individuals with high income from labor also enjoy high income from capital? Technically speaking, this relation is a statistical correlation, and the greater the correlation, the greater the total inequality, all other things being equal” (Piketty & Goldhammer, 2014, p. 242). In the U.S. the correlation between the two dimensions has become so astonishing that “President Obama called economic inequality “the defining challenge of our time.” But while Americans acknowledge that the gap between the rich and poor has widened over the last decade, very few see it as a serious issue. Just five percent of Americans think that inequality is a major problem in need of attention” (Fitz,

In today’s capitalist economy, where economic transactions and business in general is centered on self-interest, there is a natural tendency for some people to make more than others. That is the basis for the “American Dream,” where people, if they worked hard, could make money proportional to their effort. However, what happens when this natural occurrence grows disproportional in its allocation of wealth within a society? The resulting issue becomes income inequality. Where a small portion of the population, own the majority of the wealth and the majority of the population own only a fraction of what the rich own. This prominent issue has always been the subject of social tension

Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being.

No matter which country you would look into whether it’s from wealthier to those less wealthy countries through the eyes of economics, there are bound to be types of inequity within their borders. Inequity is a very crucial problem in the United States, you would think that our economy here in the states is booming, and the citizens are living life easy or without worry. Life is the United States isn’t as it seems, in fact, Inequity is in fact a big problem even in the United States. Over the years, there has been millions of Americans that were considered to be in poor or in poverty line that are not able to provide for themselves and their families. We can sadly see those Americans on the streets, cars or shelters unable to keep-ends meet that are not able to keep a decent paying job. That is why throughout this paper I’ll be discussing why inequity is a big issue in the United States from how income is distributed through causes of income inequality, social status, and even how the government interventions is trying to alleviate income inequity.

Inequality between races in the U.S. seems like a distant, long forgotten thing of the past. However, the gaps between the varied races in the U.S. are just as real as they were before. Asians are perceived as smart hard-workers with cruel parents, hispanics are identified as lazy illegal immigrants, whites are portrayed as dumb party-goers, and blacks are discerned as scary and evil thugs. The ways these races are viewed is extremely harmful to the way they are treated by society. These people tend to be treated badly starting at a young age, making the stereotypes they are accosted with harder to overcome. Stereotypes are taken to schools and jobs, causing imbalances almost everywhere, but the most damaging stereotypes are given to blacks, as they are treated like criminals

The comparison between rich and poor people is a topic with an enormous gap. The bridge between the two is longer than most see it, and is increasing steadily. Michael Sandel wrote a book discussing his opposition to the market society in the United States. The focus of Sandel’s book lies within the title, What Money Can’t Buy. He believes that everything seems to be for sale and that we are a society that revolves around the idea of every person for themselves. Sandel also states that inequality is rising faster than ever. Even though everything is for sale in this day and age, that does not mean everyone is able to purchase whatever they want. Inequality comes in many forms like race, gender and age. Income inequality affects

The video Wealth Inequality in America provides an eye-opening experience to inequality’s reality in the United States. Most Americans believe the system we have today is bad however what they think is far from the ideal and even farther from the reality. The video provides chart to have visuals of the wealth distribution in the United States. Of course, going to socialism would not be the best route. 9 out of 10 Americans feel the ideal wealth distribution should be a curve. The reality chart depicts the wealthy people and top one percent is off the chart since they have so much wealth. Additionally, the top one percent posses quarter of the national income. The narrator suggest we need to revise reality and not what we think it is.

This “middle-class nation” is struggling to support all those who live in its borders and the misconceptions about wealth are vastly overrated. Furthermore, the idea of wealth and stability is incorrect, and there is a very sharp contrast between the rich and poor in the country. As the richest twenty percent of American hold ninety percent of the total household of the total household wealth in the country, those at the bottom have managed very poorly and suffer to get through the days.

One of the social issues concerning power, status, and class in American society today is income inequality. The income gap between the social classes has increased drastically throughout the last few decades, creating a significant gap between the wealthy and the poor. This gap has become so large that the middle class has nearly diminished, creating a social class comprised of the rich and the poor. The significant gap between the two social classes is unhealthy for the economy because it provides too much power in the hands of those with high social status.

Income inequality has affected American citizens ever since the American Dream came to existence. The American Dream is centered around the concept of working hard and earning enough money to support a family, own a home, send children to college, and invest for retirement. Economic gains in income are one of the only possible ways to achieve enough wealth to fulfill the dream. Unfortunately, many people cannot achieve this dream due to low income. Income inequality refers to the uneven distribution of income and wealth between the social classes of American citizens. The United States has often experienced a rise in inequality as the rich become richer and the poor become poorer, increasing the unstable gap between the two classes. The

A major social problem in America today is its inequality of the distribution of income. "Income inequality refers to the gap between the rich and the poor. The United States has the most unequal income distribution in the industrialized world, and it is growing at a faster rate than any other industrialized country" (Eitzen & Leedham, pg. 37). The main reason as to why income is distributed so unequally is because of the gap between social classes.

Socialism, in which government manages public programs, has led to a community with no incentive to work. Take for example communities in a case study in the United Kingdom which has zero people employed and in some cases there are three generations of those on welfare within a household (Burke 2014). Likewise, the wealthy created by a capitalist society, in which business is the driving factor, pass down wealth to their children. That child can then live a lazy self-seeking life for he already has what he needs. These systems have created citizen that will no long contribute. This provides no economic justice to the middle class who are still required to work hard and subsidize others. Additionally, communist, in which government redistributes wealth, possess no need to put forth effort, for regardless of my work, I will receive the same as everyone else. These forms of government place need on government or the individual and not the community in which we function. Placing greater influence on the individual has led toward self-centered and power seeking people which provide not benefit to society (Burke

Socialism is considered the weak; less effective form of economy. “By failing to emphasize incentives, socialism is a theory inconsistent with human nature and is therefore doomed to fail” (Mark Perry, 1995). It is the type of organization that involves the government owning and controlling the major industries and prosperous companies in the country. The fact that socialism disregards private property rights in establishing incentives for economic development and growth is another reason why socialism fails. Socialism robs citizens of their human rights to private property, but it does grant the right to an education, to work, and free health care and transportation. Unlike capitalism that is based on supply and demand, in a socialist economy, the government regulates the quantity of products produced and distributed. The government also

The four dimensions of inequality include wealth, income, education, and occupation. In the United States people are ranked differently from everyone based on these four dimensions. A person’s economic circumstance is governed by wealth and income. Wealth is a personal net worth and income is the amount of money earned. Income is annual and wealth is generational. Both are distributed unequally in society, while wealth is of more importance. Only some are able to achieve wealth while 19 million Americans are living below half of the government’s line. The contribution of wealth is unequal, for example, the richest 1% in 2004 had 190 times the wealth of the median household. Or also, the top 1 percent of wealth holders control 34% of total household wealth, which is more than the combined wealth of the bottom 90%. Income inequality is increasing in the U.S society. There is in an increasing gap in the difference of earnings between the heads of corporations and the workers in those corporations. In 1980, the average CEO of a corporation was paid forty-two more times than the average worker. Education: the amount of formal education an individual achieves is determinant of their occupation, income, and prestige. There is a similarity between being inadequately educated and receiving little or no income. Evidence shows that in 2008, the annual earnings of college graduates are more than double non-high