Wealth Gap In America

In the video, Wealth Inequality in America, there were many things that caught my attention the second time around that i had not understood the first time listening to it. When they had surveyed 5,000 people I was not surprised to see that the ideal for most Americans would be a somewhat even distribution of wealth among the various groups. What I was most shocked about was what most American think about the distribution of wealth is not even close to what the reality has to hold. The fact that lowest 20 - 30 percent don't even register as sharing in the wealth of America as they are behind the poverty line. They are living of “pocket change”. The top 1 percent didn't even shock me as much as how the middle class did.

Poverty affects millions of people living in the united states, poverty is measured by the amount of money needed to support the basic needs of a house hold. Poverty is measured by the SSA low-cost food budget assuming 1/3 of the budget is spent on food. The people with the highest percentage of poverty is shown to be Hispanic female households with no spouse present. The vast majority of people in poverty are women and children but in recent years the numbers of women considered poor have raised. Percentage rate is the percentage of poor in different counties. Looking at graph that maps Americas diversity shows that the highest poverty rate is in the South the Midwest has the least. I would assume that has to do with the weather, warmer weather

According to Inequality.org, “We equate wealth with ‘net worth,’ the sum total of your assets minus liabilities. Assets can include everything from an owned personal residence and cash in savings accounts to investments in stocks/bonds, real estate, and retirement accounts. Liabilities cover what a household owes: a car loan, credit card balance, student loan, mortgage, or any other bill yet to be paid. In the United States, wealth inequality runs even more pronounced than income inequality” (Wealth). Wealth disparity affects everyone in America. When the top twenty percent of earners in America take over fifty percent of total earnings in any given year, It can be see as very unfair by anyone who is in the middle class and especially the lower class of citizens in the U.S. It is safe to say that both sides of the political world (Republicans and Democrats) are equally worried about how economic inequality will affect their children and future generations. No matter who you ask, rich or poor, and whatever their opinion on the shape of economic distribution in America is, they most likely have a unrealistic sense of the state it is actually in.

The crowd began filing into Sister Jean’s soup kitchen on Pacific Ave. in Atlantic City, N.J. well before lunch was to be served, while directly across the street, people with money to burn strolled into Donald Trump’s massive and garish Taj Mahal casino.

The difference of income and workers conditions has been a timeless conflict present throughout history of the United States. In the past workers were faced with deadly work conditions and around the clock hours for little pay. These unjust conditions dramatically increased during the Industrial Revolutions that the United States experienced in the nineteenth century. The latter period of industrialization produced the organization of the first labor unions in the Country, namely the Knights of Labor established in 1869 and the American Federation of Labor established in 1886. In present day countless unions exist, and are a lot less needed than they were in the early industrial days of the United States (Brinkley, 2012).

James Madison once stated inequality of the rich and poor predicament to be “evil” and believed that the government should avoid an “immoderate, and especially unmerited, accumulation of riches” (Johnston, 2016). As one of the founding fathers of our nation, James Madison had a concern about the separation between the rich and the poor. He felt the government should do what it could to avoid the separation, which one can infer that he meant for the government to tax the rich by a greater percentage, thus reducing the financial burden on the poor. A rift has always been present between the rich and the poor throughout history. Depending upon the job, the working class may or may not make enough to support a family. At this point, the

One legacy of discriminatory policies is that African American families today are more vulnerable to foreclosures, which destroys a large amount of their wealth. According to a study by Shapiro et al. of Brandeis University in February 2013, “Homes are the largest investment that most American families make and by far the biggest item in their wealth portfolio. Homeownership is an even greater part of wealth composition for black families, amounting to 53 percent of wealth for blacks and 39 percent for whites. Yet, for many years, redlining, discriminatory mortgage-lending practices, lack of access to credit, and lower incomes have blocked the homeownership path for African- Americans while creating and reinforcing communities segregated by race. African-Americans, therefore, are more recent homeowners and

In this paper I will be discussing the wealth gap. I will also be discussing if there should be a “special” tax to redistribute the wealth. I hope to enlighten the reader of the issue of the wealth gap, and if a tax would help.

Wealth inequality has become a hot-topic in recent years, this is because the return rate on capital, such as stocks or real estate, outruns that of economic growth which resulted in the wealthiest grasping a growing share of wealth, leading to increasing inequality. The unequal distribution of wealth has been a major hallmark of the U.S economy, and among its most notable and lasting results, but until it was brought to the awareness of the public by the Occupy movement’s catch phrase referring to “the 1%” of the populace who control half of the nation’s wealth, this issue had not been brought to the limelight of public economic and political discourse since the Great Depression of the 1930s, and almost every American is basically unaware of the true magnitude and character of the unequal distribution of wealth in our country. Inequality in wealth i.e. the sum of household savings, home equity, investments, and debts is

The vast wealth inequality in America (and the rest of the world) has been cited as a problem by Obama in many of his State Of The Union address, the Chairwoman of the Federal Reserve Janet Yellen, and many other liberal politicians and economists. Their talk about the problem of how the “1%” help perpetuate the wealth inequality has brought this issue to the forefront of society. In America, many citizens believe firmly in the idea of equality. The fact that some people have more money than they could ever spend, while others live in poverty on the streets conflicts with that value of equality. The most famous reaction to this rampant inequality was the Occupy Wall Street movement that started in 2011. Tens of thousands of people camped out next to Wall Street offices in New York and several other financial centers across the nation to protest the inequality between the 1% and the other 99%. This infamous movement gained media attention as the vocal protesters wanted to make it known that the wealth divide is unacceptable and politicians must rectify the situation. One important policy tool the United States has implemented to combat wealth inequality is a progressive tax. This means that people with more income are taxed at a higher rate than those with lower income. However this tax system has many loopholes in the United States, and the wealthiest individuals are routinely able to avoid being taxed at a higher rate by distributing their wealth in bank accounts

The fundamental, grass roots of the American dream are if you work hard, be innovative you can live a happy and free life with a lot of money. The wealth gap is supposed to exist, or who is going to drive the economy? I think people have forgotten that the richest people are the one who produce jobs and products that we all benefit from, it is a cycle in which we all help them to become richer every day by using their products. There needs to be something that drives people to the top and there is nothing wrong with staying in the middle class. Most of the class is based on inherit system, the money people gets from their grandparents. The poor people end up working harder and longer than rich people, but can't get anywhere because of poor

The Levy Institute: Recent Trends in Household Wealth in the United States: Rising Debt and the Middle-Class Squeeze: an Update to 2007 Statistics

Corporations rely upon the interest groups to sway the laws of the land in their favor. This can only be done by shaking hands and greasing palms of those on capitol hill. This means that it is very important that their interest and their wealth be protected. It is equally important for political figures to maintain political power and stay in office. Conversely, the wealthy will do all that they can to acquire and maintain their wealth. To that end, the wealthy tend to be intimately involved in the political process. Therefore, the wealthy often will donate to candidates or parties that support the same their interest. Views of the less fortunate and low income often conflict with the upper class. Likewise, the two groups are at opposite ends of the spectrum when it comes to political views. This causes a wide disparity in political views. An example of this are the markedly different opinions on the black lives matter movement. Supporters of the black lives matter movement typically are lower income and because of this their views are often underrepresented and lack the political strategy due to lack of funding. Therefore, a potential candidate who is a strong supporter of the movement would have a lesser chance than a candidate who strongly focuses on agendas that support big business. Ultimately, candidates who support the views of the upper class have a larger advantage because they receive more

Along with the developments of economics and finance, today’s society is diverse. The gap between wealth and poverty is enlarging, so individuals work harder and are more competitive in order to survive. Amy Chua, who regards herself as a typical immigrant Chinese mother, the author of “Why Chinese Mother are Superior”, talks about the differences Western parenting and Chinese parenting. She also lists some rules that she would not allow her two daughters to do, which seem tough and strict to western children. Amy Chua also uses her daughters’ examples to illustrate why her Chinese parenting is more successful than her husband’s education to the children, as she compares Chinese parenting and Western parenting. Then people would ask, why the parenting style is so different between east and west? Probably because of the competitions in China are more intense. In the essay, “Win in China”, James Fallows talks about one of the reality television shows in China, which is about the contestants fight for money to start their own businesses. The show gives people a chance that have good plans for entrepreneurships to show up their skills and ideas to get the attentions from investor in China, or even the whole world. By producing the shows, a lot of outstanding businessmen make the audiences feel energetic and excited. The words “Entrepreneurship” and “Entrepreneur” not only represent the America values, but also become the Chinese values that everyone regards them as heroes. The

In a democratic society, economic inequality is present. Economic inequality refers to the variation in wealth and income among citizens of a population. (Bartels, p. 143). Citizens come from various economic backgrounds, and because of this, there is an unequal distribution of wealth and income present. For instance, in the United States, economic inequality is vastly increasing. Some citizens may be of higher class compared to others, which can be determined by income, occupation, education or wealth. (Bartels, p. 144). In regard to policy preferences and economic status, there is a significant relationship. For example, in the policy-making process, politicians respond differently to those of different income groups. First, elected officials have more of an incentive to listen to the interests of wealthy individuals. Generally, citizens who are a part of the higher class tend to be well educated about political affairs, and politicians care solely about the “perceptions of better-informed” constituents (Bartels, p. 155). Representatives tend to respond to those who are of the wealthier class and listen to the opinions of “politically aware” citizens regarding policy preferences. Generally, affluent constituents are able to make decisions that would be beneficial to the country as a whole. Another reason why the link between upper class individuals and elected officials is strong is due to their strong enthusiasm in political affairs (Bartels, p. 182). Subsequently,