America is one of the wealthiest nations in the world with having a high inequality than other industrialized countries. Inequality exists in income, wealth, power and education. People who are legally and socially poor in the United States tend to stay in a cycle through life, not always by choice, but because they are given less opportunities, education and tools to achieve their success. The poverty stricken class has a significantly larger income gap than the upper class, the American Dream is weakened through opportunity and is shown through statistics. Inequality exists and is high in America due to the amount of income and wealth that is distributed through power. In America the income distribution is very inequality and the value…show more content… Power shows how these “values” are not distributed equally in American society. Large gains for the rich include cuts in capital gains when tax rates decrease for the small percent of Americans where income is redistributed. Taxes directly affect the wealth and income of Americans every year. That is of course, those who actually pay their taxes.
“For most Americans, the word ‘poverty’ suggests destitution: an inability to provide a family with nutritious food, clothing, and reasonable shelter” (Rector, 2007). Poverty can be socially defined through deprivation of education, food, good water, sanitation, and health care regardless of one’s income. The U.S. Department of Health and Human Services periodically updates poverty guidelines and depending on what state you live in, the guidelines range. In 2009, the poverty threshold “for a family of five is $25,790” (Services, 2009). The federal poverty levels are measured through the poverty guidelines and to determine financial eligibility is done through poverty thresholds. The poverty rate has many variations between ethnic and racial subgroups. “In 2009, 25.8% blacks and 25.3% of Hispanics were poor, compared to 9.4% of non-Hispanic whites and 12.5% of Asians” (Michigan, 2006). Black or Hispanic families headed by single women are statistically higher in poverty than of families headed by single men or married couples.