Educating the public on wealth inequality can help gain support to reduce wealth inequality. Many politicians have decried policies such as higher taxes and closing loopholes intended to help the middle class and harm the wealthy. Senate President pro tempore Orrin Hatch disagreed with former-President Barack Obama’s speech on tackling income inequality by responding that Obama was committing “class warfare,” which is a statement used by pundits to conceal the actual problem of wealth inequality. In addition, although a lower social mobility in the United States will likely keep people in poverty, around 80% of Americans thought that a person in poverty could eventually become wealthy. In addition, although only 0.2% of estates owed estate …show more content…
Education reform can be taken to educate the public on what exactly wealth inequality is and its effects on the United States’ economy. Changes such as expanding public education to all members of the socioeconomic ladder, further regulating charter and private schools, and ensuring the children of tomorrow are learning what is really happening in the United States through current events education can help solve the obfuscation of wealth inequality. Providing lower-cost education to members of the middle and lower classes could fight the decline of social mobility in the United States caused as a result of wealth inequality. Although education reform will certainly cost the United States in the short-term, long-term effects such as higher wages, improved health, reduced dependency on social welfare programs, and increased volunteerism are well worth the initial costs. Although investing in education is a viable option, there are other ways to solve the problem of wealth …show more content…
Organizations such as the Occupational Safety and Health Administration (OSHA), the International Labor Organization, and the National Labor Relations Board (NLRB) could help workers gain an edge over their employers. This advantage can increase workers’ wages and decrease the high payouts given to executives, which reduce inequality. Collective bargaining by unions can also help gain and leverage this advantage. Collective bargaining is currently under threat by a Supreme Court challenge. Janus v. AFSCME is a case in the Supreme Court that may affect union dues across the country and potentially overturn a precedent established in 1977. If the Supreme Court sides with the plaintiffs, around 20% to 30% of both members and revenue from the unions will be lost as a result. This may cause some unions to collapse. If a collapse were to occur, workers would be without a voice to represent their concerns, leading to lower wages, poorer conditions, and higher inequality as a result. Moreover, arbitration clauses listed in workers’ contracts prevent workers from standing up to problems with their employer. Arbitration disproportionally benefits employers over workers, which prevents workers from remediating the injustices present in the workplace. In addition, many arbitration clauses prevent workers from joining up together, which can give them more power in legal complaints called “class-action”
Income inequality has been a major issue in American history. There are many different factors that contribute to inequality. These include education, wealth, discrimination, ability, and monopoly power.
Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being.
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.
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
The wealth gap between the rich and the poor continues to grow in America as it has in recent decades. Wealth distribution in America has not been this unequal since 1928, the year before the Great Depression started. The richest four hundred people in America have more money than the one hundred fifty million poorest Americans combined. The wealth gap needs to shrink due to the negative repercussions of wealth inequality. Wealth inequality leads to inequality in other aspects of life. Uneven distribution of wealth stunts economic growth as well as limits socio economic mobility. It also leads to a shorter lifespan for the less wealthy.
Americans today live in a distinctly unequal society. Inequality is now wider than it used to be in the last century, and the division in income, wages, and wealth are broader than they are in other developed economies of the world. Wealth inequality is the imbalance of wealth or income within a society, and it is one of the most vital economic challenge the US is facing today because the distribution of wealth is more dispersed, making the inequality in wealth distribution at its highest. While the matter has been discussed for many years, the actual income disparity in the U.S. has heightened and is now verging on an extreme gap that portends to impede long-term economic growth. The huge gap between the wealthy and poor is squeezing the U.S. economy, the wealth gap threatens economic growth by diminishing social mobility and producing a less-educated workforce who are not able to compete in the global economy. unrestrained level of income inequality causes political pressures, it discourages trade, investment, and hiring. The present level of income inequality in the U.S. is shrinking GDP growth, and the world's largest economy is struggling to recover from the Great Recession.
The somewhat controversial issue of wealth disparity is, why there is such a huge economic disparity in the class system and how can it be dealt with. The reality of redundantly confirming the vivid difference among classes with regards to economic wealth would be an understatement. First and foremost, the US is a combination of
For the past 30 years the “gap” in income received by the rich and the lower class has continuously continued to increase, showing no signs of decrease anytime soon. This gap has mostly affected the middle class, which is made up of mostly African Americans and Hispanics, making America less determined to correct such an issue. Given the circumstances African American’s are the focus of this issue due to the fact they make up majority of the middle class. It is known that modern racism exist within today’s society in various ways, one of which happen to be within the economy. For decades the economy has had its downfalls, however, it’s been facing an issue that it has been hiding from the rest of the nation. The gap that everyone speaks has
Income Inequality is a major problem that has been going on in America for decades. Many people feel that it barely exists today, but those people are very uneducated and don’t really care about the huge problem in front of them the many people that feel that way are highly uneducated, and seem to not really care about which has been gradually increasing instead of decreasing. Unfortunately, there’s not much that can be done, only of course if the poor class of people decide to actually educate themselves and get a higher education. One says poor class, simply because that’s how they’re classified. There are five types of levels that Americans are classified as, and they are: Upper Class, Upper Middle Class, Middle Class, Working Class, Poor. The highest percentage of Americans fall in the Poor department, and it has been that way for decades, and will continue to be that way for decades to come.
An important factor in the creation of inequality is variation in individuals’ access to education (Becker, et. Al, 2007). According to Bosworth et. Al, (1999) education in a field that requires or demand a high number of workers, creates high wages for those with advance education. As a result, those who are unable to afford good quality education or choose not to participate in schools or colleges, generally receive much lower wages and thus it lowers aggregate savings and investment. In particular, the increase in family income and wealth
The four dimensions of inequality include wealth, income, education, and occupation. In the United States people are ranked differently from everyone based on these four dimensions. A person’s economic circumstance is governed by wealth and income. Wealth is a personal net worth and income is the amount of money earned. Income is annual and wealth is generational. Both are distributed unequally in society, while wealth is of more importance. Only some are able to achieve wealth while 19 million Americans are living below half of the government’s line. The contribution of wealth is unequal, for example, the richest 1% in 2004 had 190 times the wealth of the median household. Or also, the top 1 percent of wealth holders control 34% of total household wealth, which is more than the combined wealth of the bottom 90%. Income inequality is increasing in the U.S society. There is in an increasing gap in the difference of earnings between the heads of corporations and the workers in those corporations. In 1980, the average CEO of a corporation was paid forty-two more times than the average worker. Education: the amount of formal education an individual achieves is determinant of their occupation, income, and prestige. There is a similarity between being inadequately educated and receiving little or no income. Evidence shows that in 2008, the annual earnings of college graduates are more than double non-high
I take great pride in the fact that I live in America. The USA is the wealthiest country in the history of our entire world, yet a good majority of Americans don’t even know this. You would think in the wealthiest county in the world we would have pay equity, low child poverty and no racial income inequality, but that just isn’t the case. America has massive injustice in terms of income and wealth inequality and this is a large issue to citizens that needs to be fixed.
Everywhere you look at the United States you can find economic stratification. From the kind of vehicle you drive, to the kind of house you live in, to the kind of restaurants you eat at the most you will find economic stratification. Some might ask, does any of that truly matter today? Yes, unfortunately, it does. An important goal for most people is what’s referred to as The American Dream. Whether it is to attend a good college, get a respectable job, purchase the perfect house, and have a small family or maybe just to start your own business; that dream starts with wealth. People with more money will have an easier time with achieving the dream than a lower income person would. With wealth comes power and prestige as well. People with more money have better life chances because they can afford better healthcare, education, healthier food, and safer neighborhoods just to name a few things.
The tremendous growth of income inequality comes with a cost to individuals and to society as a whole. Since inequality means that larger shares increase the wealthy, the poor is affected by the disparity of incomes. The intergenerational community is based on the parent’s income which is a disadvantage to children who want to obtain success. In my perspective, stronger unions and a healthier corporate culture in which CEOs have a stronger relationship with their workers can lead to higher wages. Moreover, the wealthy have strived to earn a better future, but some have exploited the American worker and legal system. Employers must be responsible for protecting their workers and giving them fair wages. In my opinion, the higher education and raising the federal minimum wage can reduce the income gap and unemployment in the United States. Overall, this defining challenge requires steps in narrowing the income disparity in this
Wealth is an individual’s or household’s well-being. Income is the money we receive. Income and wealth inequality means there is difference. There is a lack of equality in relations to the money we receive and how we spend it. The poor and middle-class merely make enough to make ends meet and afford the necessities they need. On the other hand the rich over consume.