Income Disparity Research Paper

Gary Becker’s and Kevin Murphy’s article, “The Upside of Income Inequality”, analyzes the positive effects of the income gap, and Paul Krugman’s New York Times column, “Confronting Inequality”, stresses the negative impact of the income gap; it is apparent by juxtaposing these two texts that income inequality can be effected by economic development, education, and social equality.

It is a commonly accepted that inequality is increasing throughout the globe, with startling statistics such as the recent Oxfam report indicating that the richest 85 people in the world own more wealth than the poorest 3.5 billion people(Oxfam Australia Media, 2014). Inequality is thought of as disparities or gaps, such as the distance between a low income and a high income household, or the ratio of their incomes (Divided We Stand, 2011). Domestic inequality refers to inequality within a country and

"How Economic Inequality Harms Societies." Richard Wilkinson:. TED Talks, July 2011. Web. 26 Feb. 2015.

There is no doubt that wealth inequality in America has been escalating quickly; the portion of total income earned by the top one percent has doubled since the beginning of the 1970’s. The wealthy are the main beneficiaries

First we must define what exactly income inequality really is and that is according to Definition of ‘Income Inequality’ (2015) said to be unequal income distributed to household or individual across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population. For example,

Presently the United State 's income gap between the middle class and wealthy is undoubtedly significant. Some say that income inequality is

Americans today live in a distinctly unequal society. Inequality is now wider than it used to be in the last century, and the division in income, wages, and wealth are broader than they are in other developed economies of the world. Wealth inequality is the imbalance of wealth or income within a society, and it is one of the most vital economic challenge the US is facing today because the distribution of wealth is more dispersed, making the inequality in wealth distribution at its highest. While the matter has been discussed for many years, the actual income disparity in the U.S. has heightened and is now verging on an extreme gap that portends to impede long-term economic growth. The huge gap between the wealthy and poor is squeezing the U.S. economy, the wealth gap threatens economic growth by diminishing social mobility and producing a less-educated workforce who are not able to compete in the global economy. unrestrained level of income inequality causes political pressures, it discourages trade, investment, and hiring. The present level of income inequality in the U.S. is shrinking GDP growth, and the world's largest economy is struggling to recover from the Great Recession.

Income inequality is one of the greatest problems facing the United States today. It is important for everyone to understand what this means and why this is a problem.

Wealth and Income Inequality in America The United States of America was founded upon the ideals of freedom and equal opportunity for all individuals. Many people strive to achieve the American Dream by enhancing their socioeconomic status. Today, many people argue that these rightful values are no longer relevant due to the growing income and wealth disparity between different social classes. Income and wealth are two social issues that are commonly misinterpreted; although the two concepts are related, the overall concepts are a little bit different.

The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.

This paper researches and reviews the widening income gap in modern America, going into detail about the activist and non-activist viewpoints on this issue. Discussed is the impact it has on the economy, and the overall wellbeing of the country. Politicians of the political left and right’s opinions and actions they have taken are also touched upon, since it is a hot issue in the 2016 presidential election. Included is an in depth explanation of income inequality, and how it effects the American economy and the country as a whole.

essays’ summaries related to income inequality from the They Say I Say book that greatly

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

Income inequality is a phenomenon that is undeniably real in our current world, and more specifically, the present United States. Canon describes how the gap between the elite and the poor has been consistently growing for many years and continues to widen (189). Whether the differences between the top and the bottom are a threat to current society is another story. Does income inequality undermine a democracy? Ray Williams argues that societies are strongest when they have a higher rate of equality while George Will challenges that inequality is the very basis of what make democratic processes. A. Barton Hinkle takes a Libertarian approach to the idea that inequality is threatening to democracy and how it can be fixed. Some threats that each article addressed were economic impacts, civility, and fairness. Overall, there is a definite need to evaluate whether the United States democracy is being threatened due to the continuous rise of the elites and the fall of the working class.

Furthermore, Clarke indicates, “Class inequalities in income and wealth have not only persisted over time, but have deepened, both in the U.K. and Globally”. (Clarke J. 2014, p. 384).