Income Inequality Today

In Income Inequality: Too Big to Ignore, Robert H. Frank paints a picture to the reader about the struggles of pier pressure. For example: an upper-classmen chooses to buy a big house and fancy clothing. This acts as a “frame of reference” to the changes and norms of the society. If he spends money on something nice, a middle-classmen will then go and decide to do the same thing, and then a lower-classmen…all the way down the social hierarchy. This is what he calls an “expenditure cascade.” Robert relates this with a person’s downfalls, which can be traced due to lower income inequality. Income inequality basically means that in a given quantity, the dispersion of income is underlined by the gap between individuals and or households with

From 1938-1969, in America was in a period called the great compression, a time where the difference between the richest and poorest Americans was very small and economic growth was explosive. Due to past and current economic policies and events, income inequality has exploded in America, which is why in 2015 America had the highest level of wealth inequality in the world at 80.56 gini[1] . In the future this inequality will slow down economic growth, increase debt for middle income Americans, make America less democratic, and reduce economic mobility. This problem, however, does have solutions and this paper will lay out some of the solutions and the effect they will have on the economy, but first I will explain the history of income inequality in the US.

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.

Today in America, income and wealth inequality has continued to grow at an unsettling pace. The rich continue to get richer, while the number of people categorized as lower class grows exponentially. As Joseph Stiglitz has explained, many theories that are seen as strongly Republican, such as the trickle-down effect, has caused the rich to take money from the poor, and as a result the lower class grows and the middle class disintegrates. The top 1 percent of America’s households currently holds 30 percent of America’s economy, which is much more than other first-world countries and helps to emphasize the extremity of inequality currently in America today. This increased inequality has in turn caused America to become a much more divided society; those born in poverty typically stay in poverty, with little to no chance of self-improvement due to a lack of education provided in their areas. In contrast, those that are born wealthy typically go to better schools, have better health care, and are all but spoon fed information on how to remain wealthy. These two sides of society almost never cross, and this causes the country to be more divided than ever. In order to limit this inequality, drastic changes must be made, such as large corporations paying their fair share of taxes and giving back to the lower class, and minimum wage should be raised. If everyone in America works together, we can raise social mobility and re-unite what has become an increasingly divided country.

Since the beginning of human history there has always been a power structure; who is to be on top and who is to be in the bottom. So, it comes to no surprise that America has a growing gap between the wealthy and everyone else. The United States is known as a melting pot and a country full of opportunities for all but it is also the place where upper class makes millions in an hour and the lower class only makes minimum wage. United States thrives on promoting everyone is created and treated equally but that happens not to be the case. Polls after polls shows a huge percentage of Americans biggest concern is the income inequality, the rich continue to get richer and the poor continue to get poorer, that it’s not being tribute equally among race and gender. Wealth and income inequality has grown since 1920s like never before and the question lays what is the cause and how can it be fixed.

Today, America is considered one of the most developed and advanced country in the world. On top of everything, this promised country is well-known for its strong and effective economic free-market system. The foundation of the United States is based on the belief of freedom and equality, which is enjoyed and practiced by most of people in the “Country of Liberty.” Unfortunately, the idea of equality does not apply to every citizen of the U.S. In fact, the problem of inequality in America has remained a controversial issue for centuries. Specifically, today, the gap of wealth between people in the United States is dramatically increasing. Emmanuel Saez, an economics professor at UC-Berkeley states that: “Wealth inequality in exploding, constituting a direct threat to the cherished American ideals of meritocracy and opportunity.” Wealth inequality is undoubtedly the biggest problem the American society is facing.

The American Dream remains alive and well however due to income inequality it has failed to become a reality for the overwhelming majority. The fact that all politicians today still agree that income inequality is a major problem in the United States, shows that there persists an overwhelming need for better methods than the ones that have been tried in the past. Politicians, in their quest to win elections, emphasize the failure of our economic system to bridge and close the gap between the rich and the poor masses. The implantation, by governments, of various economic theories postulated by the great economic minds

There is a problem plaguing the United States: economic inequality. The financial gap between the rich and poor is widening and it only continues to increase. Not only is the rich becoming richer but the poor is becoming poorer. If some type of change doesn't happen it will cut the middle class. Although this is not a concerning matter to some, to others it's a huge concern and it continues to be a daily problem. Because economic inequality hurts the United States economy, the government should take steps towards reducing the gap between the rich and poor.

The biggest problem in today’s economy is wealth distribution also known as income inequality. Income inequality is the unequal distribution of income across various participants in a nations economy. This unequal distribution can be seen when looking at things such as property, valuable possessions, stock, savings, and investments. While the wealth of the US is clearly distributed unevenly, a “gap” between the rich and the poor continues to grow. Wealth distribution and the gap between the rich and poor is directly related to the concept of unequal opportunity. Economists such as Andrew Carnegie and John Kenneth Galbraith both believed that the economy is unfair and everyone should be given an equal opportunity to become wealthy and successful. People who are more fortunate should also try to help better the community and put there wealth towards society. Other economists such as Thomas Malthus and Garret Hardin believe that there will always be some percentage of humans

Income inequality is the defining issue in this country today; income inequality is an economic danger in the United States, increasing and becoming permanent, reducing social mobility in the U.S. The income and gap between the wealthy is produced by the number one reason for the low and slow economy. Corporations and the top 1 % are hurting the economy and do not seem to comprehend that the flow of wealth is what gives them the chance to make more. Corporations should be hiring more to get more into the flow so that the economy can come back to

Robert Reich explained to us, "Income inequality is inevitable and is essence of capitalism, but when the gap became too much, then it became a problem to the society. Today, the United States has the most inequality distribution of income of all the developed nation, the richest 400 Americans had more wealth than the bottom 150 million people put together"2. First of all, income inequality exist everywhere, it is not a problem for itself. Because of the income inequality, poor people know the life difference between people, then they will work harder and harder to catch up to get rid of poor, and to have a better life. The income inequality is a good thing when it is not much for is the source of power that make people to improve themselves.

Although the United States is considered one of the best countries in the world, we still have many issues. One of the biggest ones being income inequality. In the United States, economic prosperity is not in reach for everyone. In the movie Inequality For All Robert Reich talks about how big of an issue income inequality is and the opportunities available to the average American.

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 has been a major issue in American history. There are many different factors that contribute to inequality. These include education, wealth, discrimination, ability, and monopoly power.

Income and wealth inequality in the western world is an extremely destabilizing force. These levels of inequality have not existed since the gilded age or the 1920s. Without the redistribution of wealth in the short term and creating a more equal playing field in the long term, the future of humanity looks dystopic.