Inequality And Inequality Of Income Distribution

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Inequality of Income Distribution in the United States Today, the average income of the richest 10% is 14 times that of the poorest 10% in the United States. Famous economist Milton Friedman argues that this inequality gap would eventually spur people to work harder and boost productivity. Others, who are not that optimistic, argue that the income inequality leads to a growing level of inequality of opportunity. For that reason, six in 10 Americans now say that only a few people at the top have an opportunity to advance. Looking at both of the perspectives, we see that different people’s attitudes towards fairness and equality are different. However, it still does not change the fact that income inequality is not at the desired range to have positive consequences, which makes it a huge problem. A recent study points out that different economic systems function best with different levels of inequality and under current circumstances, the inequality range that will lead to positive consequences for the U.S. economy is between the Gini coefficients of 0.25 and 0.35. This is an efficient range, because it addresses notions of fairness that have been supported by each side. Throughout the history, major events and technological shifts have been the greatest drivers of income inequality. During the times of wars and disasters, people demanded less inequality to be able to support themselves. On the other hand, use of fossil fuels further expanded the inequality gap. Today, these
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