The Widening Income Gap Of Modern America

1579 WordsDec 3, 20157 Pages
This paper researches and reviews the widening income gap in modern America, going into detail about the activist and non-activist viewpoints on this issue. Discussed is the impact it has on the economy, and the overall wellbeing of the country. Politicians of the political left and right’s opinions and actions they have taken are also touched upon, since it is a hot issue in the 2016 presidential election. Included is an in depth explanation of income inequality, and how it effects the American economy and the country as a whole. The Income Gap in America Within recent years, the income gap in America has been rising and becoming a controversial issue. Reactions to income inequality have been largely split among Americans of different…show more content…
Income inequality is often presented as the percentage of income to a percentage of populations. To put it simply, wealthy households of the top 1% are holding a greater share of the nation’s income than everyone else. “The United States in particular has much higher rates of income inequality than other developed countries” (Brooks, 2014). In recent years, economists have debated whether it has become a hindrance, has had no effect, or has helped sustain the American economy. That is to say has an increased concentration in the top 1% increased or decreased the economic well being of the country. There has been debate over the role of progressive taxes, which is taxes that are directly proportional to income earned, in the combatting income inequality. Finally, a question that often is central to the debate on income inequality is whether labor markets naturally create imbalance in wages. In reference to income inequality, one would assert income inequality to be a natural, unintended consequence of markets for which it is the responsibility of governments to correct. Activists often argue for the government to meet when markets behave inefficiently, creating unbalanced concentrations of wealth. Members of the activist group tend to be of the left-leaning or liberal. This is because liberals tend to follow a method, including a firm belief
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