The Inequality Of Income Distribution

1244 WordsMar 29, 20165 Pages
In an economic sense, income distribution refers to how wages and salaries are split among a society of people. The top earners in a society are naturally considered to be the richest, whereas the lowest earners are the poorest. In any society, such differentiation in earnings commonly creates class systems based on yearly income. This structure is often measured by labeling people as lower class, middle class, or upper class depending on yearly earnings even though there can be a large difference in the top and bottom incomes of a class. Concerns about the inequality of the distribution of income in any society are often brought about when individuals believe that one income class is earning too large or too little of a percentage of the total income. In the United States however, certain policies and programs are in place to combat criticism against the fairness of income distribution. In addition to these policies and programs, the United States was founded on the belief that any individual, regardless of social class or birth status, should be as successful or unsuccessful as they wish depending on their ability to capitalize on opportunities presented to them throughout their life. Commonly known as “The American Dream,” this notion towards freely being able to create one’s own wealth and worth can be seen throughout the history of the United States and is a major factor that guided America to become one of the world’s economic super powers. After recognizing a historic
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