Macroeconomics Research Project : Income Inequality

A cause of income inequality could be the jobs that people have. “In the United States, income inequality, or the gap between the rich and everyone else, has been growing markedly… (Income Inequality, para 1).” There have been no signs of income inequality changing for the lower classes, or getting better, therefore, it has become a very concerned issue upon Americans. “America’s top ten percent now average at least nine times as much income as the bottom 90 percent (Income Inequality, para 2).” Many people who have a big dream have jobs that pay minimum wage, which makes it hard. With the rich getting richer, it makes it hard for the lower classes to get a shot at being at the top with them. This also makes it hard to close the gap between the three classes.

Income inequality is on the rise and it is evident in most cities throughout the United States. There are individuals with six to seven figure incomes and then there are individuals whose income is just enough to get by. The middle class is not as prominent as the upper and lower class. This should be the other way around. There should not be so many cities with very wealthy neighborhoods right next door to low class, rundown neighborhoods, with little middle class households. Digging deeper, 47.6% of the money in the United States belongs to individuals that receive $98,200 or more (“Distribution of U.S. family income”, 101). The middle class should be much more noticeable with the upper and lower

Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income.

“The United States income inequality has risen drastically since the 1970’s and has not been this high since 1928.” Economic inequality is the unequal differences in how assets, wealth, and income are dispersed among the people and different populations throughout the United States. It is often described as the gap between the rich and the poor.

The issue of income inequality in the United States is complicated and does not have a definite answer. Income inequality can be measured in a few different ways. The first measurement for the income inequality in a country is to look at the percentages on households and group them into income categories, called distribution by income category. The second measurement for income inequality is called distribution by quintiles or fifths. This is when you divide the total number of people, households, families into five groups called quintiles to examine the percentage of total before tax income received by each quintile. Each quintile would then be ordered by income and households in the category.

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,

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.

This fact remains accurate after government attempts at wealth redistribution such as taxes. This shows that the government is not successful at helping to redistribute wealth and the dramatic increases in wealth of the rich while the poor barely improve show the inefficacy of the “trickle-down economy” model. To figure out why the 10% is gaining wealth so quickly, the people that make up this small group must be analyzed. The top 10% is essentially comprised of three main groups: superstars, CEOs, and high-income professionals. However, the incomes of superstars and CEOs are increasing more rapidly than those of the high-income professionals (Belsie). While the incomes of high-income professionals and superstars are market driven, they do not benefit from the same rate that CEOs do.

Assignment 2 The social construction of deviance is defined by how an individual or group breaks a society’s cultural norms and values. Deviance occurs by certain behaviors of a culture that goes against the everyday behavior of a specific sect of society. A specific example of this is the women rights movement during the late 1800’s and ending in the 1920’s. Women who wanted to work or have the same rights as men were seen as deviant because women were meant to be housewives. Women’s right activists argued that women are equal to men.

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.

Rittenberg and Tregarthen (2012) explains that Income inequality in the United States has increased over the last century. Rittenberg and Tregarthen (2012) have also shared data from the Congressional Budget Office that reveals between 1979 and 2007, the real average household income also taking into account government transfers and federal taxes that rose 62%. For the top 1% of the population, it grew 275%. For others in the top 20% of the population, it grew 65%. For the 60% of the population in the middle class, it grew a bit under 40% and for the 20% of the population at the lowest end of the income distribution, it grew roughly 18%. The data clearly shows that even though the United States is considered one of the wealthiest countries looking at these numbers it’s easy to tell that the citizens are having it

Income inequality is a pressing issue in the United States of America. “The unequal distribution of household income or individual income is called the Income Inequality”. It is presented as the percentage of income to a percentage of population. Joseph Stiglitz, a Nobel-prize winning economist is a professor at Columbia university and the Chief economist at the Roosevelt Institute talks about income inequality in one of his interviews with The Atlantic (Nov 2, 2015). He believes that income inequality can be stopped by the citizens and the politicians of the United States before it gets worse. He states that in the years between 2009-2012, 91 percent of all income growth was relished by the wealthiest 1 percent of Americans, and the bottom 99 percent did not benefit.

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 inequality in America is higher than in any other industrial nation in the world. Many believe this creates serious problems for both United States citizens and its economy. The inequality difference is continually getting larger and worsening these problems.

Inequality is a very concerning issue that affects millions of individuals worldwide. There are many forms of inequality but only two disciplines which include economic and social inequality. Both these forms describe the unequal distribution of resources among individuals in a group, among groups in a population, or among some countries. Between the two, economic inequality is the one more focused towards the business world. Economic inequality is the unequal distribution of income or wealth which can also be referred to as income inequality. This form is often associated with income fairness and is generally considered unfair due to the large differences between the high class individuals and the middle and lower class individuals. Income