Income Inequality and Standard of Living in the United States

2126 Words 9 Pages
Income Inequality and Standard of Living in the United States

A characteristic of man that separates him from the majority of the animal world is his organization of social and economic systems. Man, however, retains traits of his evolutionary ancestors in the form of self-preservation and greediness. While many political, economic, and social systems try to eradicate this form of natural selection, capitalism and related economic structures preserve social inequality in many forms. Historically, this preservation of financial inequality has achieved a higher standard of living generally than systems originally formed and employed to achieve just that.

There are specific economic factors of capitalism that enables it to make life more
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Many privately owned companies exist in capitalist societies. The population is not vast enough to carry all of these companies.

Everyone needs a house. Rich people poor people; all people are included. This is a problem, because housing costs a great deal of money. Poor people that can barely afford food and clothing also have a hard time finding reasonable housing. As a result, some live in unsafe and unhealthy conditions that are badly in need of repair. Poor people live in the central city for two different reasons. First, the farther away that you get from the central business district, the higher your transportation costs to get to your job (assuming that the job is located in the CBD). If you can not afford to commute to your work, you will be unable to keep your job, making you worse off economically. Therefore, you would chose to locate your residence close to your place of employment (closer to the CBD) in order to reduce your transportation costs. IF you live close enough to your place of employment, you may not need to use any form of transportation other then your feet, which doesn’t cost you anything but your time.

The second reason has to do with where new houses are built. New homes are built on land that was previously undeveloped, usually located on the outer edge of the residential district, furthest away from the central business district. The wealthiest people move into these new homes, leaving the upper middle
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