What Is The Cause Of Income Inequality In America?

Mantsios writes about class in the United States. He covers the fact that people rarely speak about the existence of social class. As americans we refer to each other by their race, ethnic group, or geographical location. Mantsios states that we do not speak about class because it has been taken away from pop culture. The author is the one making the argument in this article. He has very outstanding credentials such as being the director of the Murphy Institute for Workers Education and Labor Studies at Queens College in New York. He is also editor of a New Labor Movement for the New Century (1998). The targeted audience seems to be the “upper class.” I feel like the “upper class” needs to help out the “middle class,” but I also think the middle class needs to be more aware of the situation. They could both work together. The authors main point of this article was to inform the readers about social

It can always be nice to imagine that you can go from very poor to very rich but in America, that’s not the case. According to a recent study, 70% of those born in low income families remained in the lower income bracket. Out of the remaining 30%, only 24% reached middle-class or upper- class and 4% rose to become high income earners (Hargreaves). Now, it is very difficult for people born into the lower class to rise up to the middle or upper class. These people that do successfully rise up have to have certain characteristics. 53% were college graduates, 50% were two income families, 35% were white, and 34% did not experience unemployment (Hargreaves). Most people in low- income families cannot afford college and student loans. This makes them less likely to become part of the middle class. Poor people do not have the resources to strive and become part of the other social classes. Overall, it is becoming more and more difficult for low- income families to become part of the middle class.

In the United States, high standard of living is not equally shared with in the Americans. The 1970s and 1990s was period where economic inequality began to grow. Emmanuel Saez, an economics professor at UC Berkeley has been doing a research for the U.S. income inequality. He states that there has been an increase since the 1970s, and has reached levels that have not been seen since 1928. “In 1928, the top 1% of families received 23.9% of all pretax income, while the bottom 90% received 50.7%. But the Depression and World War II dramatically reshaped the nation’s income distribution, by 1944 the top 1%’s share was down to 11.3%, while the bottom 90% were receiving 67.5%, levels that would remain more or less constant for the next three decades. But starting in the mid- to late 1970s, the uppermost percent income share began rising dramatically, while that of the bottom 90% started to fall.”(DeSilver) Ever since then, economic inequality continues to increase, especially in the last three decades.

In other words, America has a widening gap between its wealthy and poor. As the rich get richer and the poor get poorer, there is a problem emerging: the disappearance of the middle class. Low-wage workers continue to fall behind those who make higher wages, and this only widens the gap between the two. There has been an economic boom in the United States, which has made the country more prosperous than it has ever been. That prosperity does not reach all people; it seems to only favor the rich. Rising economic segregation has taken away many opportunities for the poor to rise in America today. The poor may find that the economic boom has increased their income; however, as their income increase so does the prices they must for their living expenses (Dreier, Mollenkopf, & Swanstrom 19).

Income Inequality in America is a problem that’s been going on for decades, and many feel that it hardly exists, the many people that feel that way are highly uneducated, and seem to not really care about this tremendous problem that in one’s eyes really has no end in the near future, in fact it has been gradually rising and one feels that it’s just not fair. 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: 1. Upper Class, 2. Upper Middle Class, 3. Middle Class, 4. Working Class, 5. Poor.

It can be said that money is power in the United States, and this is brought out in the essay, “Class in America---2012” written by Gregory Mantsios. He says that even though many Americans do not like to discuss class, “it can determine where people live, who their friends are, how well they are educated, and what they do for a living” (Mantsios). Many Americans do not speak about class type, and most find it unacceptable (Mantsios). Unfortunately, we can see that there are laws that are built to help and better the wealthy, while it cripples the rest of us. According to the Economic Policy Institute, “The richest twenty percent of Americans hold nearly ninety percent of the total household wealth in this county” (Institute) Gregory Mantsios without reserve describes the majority of people are at a disadvantage in their social class, while the upper class is compensated.

Nowadays, the middle class is shrinking, while majority of people are either moving into the lower or upper classes. This is due to the major economic and policy changes that have occurred throughout the past thirty years. Based on the Basic Economy Security Tables, one in four full-time working-age adults are not earning enough income to meet economic needs for themselves or their families. This is a serious problem in America today, the fact that the median income today is six hundred dollars less than it was in 1989 is proof of this epidemic. It is much harder now, than ever, to work your way into the middle class, much less stay there. The percentage income growth since 1967 for the top 5 percent of earners is 88%, top 20 percent of earners grew 70%, and middle-income households only grew 20%. (Camp) In simpler terms, the upper classes income has increased tremendously, while middle-income households have seen very little growth in their income. Since the middle class is not receiving any income growth, it is declining and moving towards the lower class. It is not nearly as easy as it was thirty years ago to get a decent job and make

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.

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.

Although most people in the United States of America do not live in an upper-class household, this term is often correlated with income, wealth, power, and prestige. In fact, “approximately one percent of the U.S. population is considered to fall in this stratum” (2017 p.260). Nevertheless, the middle class are the rulers of the United States of America. Per Conley, the middle class is “a term commonly used to describe those individuals with nonmanual jobs that pay significantly more than the poverty line – though this is a highly debated and expansive category, particularly in the United States of America, where broad swathes of the population consider themselves middle class” (2017 p.262). In particular, the middle class is often correlated with white-collar workers, such as accountants, teachers, and attorneys. An abundant number of families in the United States of America are considered to be “poor.” In accordance with Conley, “in 2015, the poverty line for a family of four was $24,250” (2017

The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.

The United States is the richest country on Earth. Free-market advocates promise this prosperity to span over all socio-economic classes, but it simply has not. The American middle class prosperity is a fantasy. Like my family, many middle-class Americans are facing massive inequality, jobs losses, and a continuous increase in the amount of debt accrued. While the United States is home to the most billionaires and millionaires in the world, the wealth of our middle class is ranked 27th globally. For decades their have been a series of economic and societal transformations leading up to the development of the middle class and the turmoil it has left families in, such as my own.

Over the past few decades, the “American Dream” vision has been quickly vanishing as a result of the increasing troubles and weakening of the middle class. It has lost the view of being the most successful and wealthy middle class in the world, while the middle classes in other countries are excelling in earning higher middle and lower class incomes. The issue of the declining wealth of the middle class explains a huge problem in the United States’ future prosperity and well being for the citizens and the country. There are many issues that affect the success of the middle and lower classes, such as structural differences in the economy, culture, and government. The gap between the middle and high classes is increasing specifically. The United States has the image of giving people life and prosperity, but inequality is increasing significantly due to issues in education, decrease in taxation among the upper class, and decrease of middle class power in the democracy, while other ideas and mechanisms can be take from other nations.

There are three social classes within our society: the wealthy, the middle class, and the poor. The problem exists due to the imbalance of these groups. As the rich continue to grow richer, the middle class shrinks, and the number of poor people, who are struggling to provide for themselves, grows. The solution can be found in the rich playing a larger role in caring for the poor.

A major social problem in America today is its inequality of the distribution of income. "Income inequality refers to the gap between the rich and the poor. The United States has the most unequal income distribution in the industrialized world, and it is growing at a faster rate than any other industrialized country" (Eitzen & Leedham, pg. 37). The main reason as to why income is distributed so unequally is because of the gap between social classes.