Predatory Lending and Inequality Essay

1281 WordsJan 18, 20136 Pages
For many years, the American dream has been deteriorating for several reasons. Paul Krugman, author of “Confronting Inequality,” blames the “inequality of our income distribution.” He explains how and why the differences between wages of the poor and wealthy are a major conflict in today's society. Constance M. Ruzich and A. J. Grant, authors of “Predatory Lending and the Devouring of the American Dream,” argue that the downfall of the American dream has occurred because of predatory lending acts. According to the authors, predatory lending and inequality play a very significant role in the corruption of the American dream. Predatory lending has caused many conflicts in the American society. Victims who fall for predatory lending are…show more content…
Why is it so important and why has it caused the economy such agony? Americans, both wealthy and poor, try their absolute best to maintain a decent lifestyle for their children so they may have more open opportunities, especially during these difficult hardships. Many middle class Americans are purchasing homes that they may not be able to afford. Why? Because they want to make sure their children are living in a good neighborhood with a good school to receive an education. This shows how the wealthy and poor have different standards of living in terms of money management. This inequality connects back to predatory lending. People who purchase homes over their budgets will have more income difficulties and financial problems. This is likely to lead to subprime mortgages which, in an unfortunate turn, adds to the distress of the economy. Paul Krugman, an economy professor at Princeton and op-ed writer for the New York Times, states in his essay, “The lack of clear economic progress for lower- and middle- income families is in itself an important reason to seek a more equal distribution of income.” The inequality within our present society has caused a ridiculous amount of misfortune and concern. Incomes are unequal which raises questions as to who is living the better life and who is at a better advantage. Krugman also mentions in his essay, “Our unique lack of universal health care, all by itself puts Americans who are unlucky in
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