Why The Rich Are Getting Richer And The Poor, Poorer

Throughout Robert Reich article Why the Rich Are Getting Richer and the Poor, Poorer, discusses about the growing gap between the upper and lower class in modern society. Reich’s article is certainly an eye opener regarding unemployment, and how it is currently surfacing from the shortage of technology and education. Through the text Reich uses a firm metaphor to describe how the economy is like a boat that constantly moves up and down the current portraying the upper class and working class. This boat however is extremely important because it is a boat we are all currently in and one is sinking faster than the other and that one is rising; here Reich is distinguishing the different types of social classes. However, the rich are yet getting

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

Reich starts his exordium with a distribution of where American workers found themselves in the early 1990’s in reference to where almost all American workers were just 20 years before. Reich placed most of the workers that contributed to the economy during the Nixon administration as being in one boat, analogous to the famous quote by G.K. Chesterton, “We are all in the same boat, in a stormy sea, and we owe each other a terrible loyalty.” Under Reich’s distribution you were still in a lifeboat, but the sea state and your future could be rough or smooth sailing depending upon your chosen profession. To which boat one found his or her self was directly related to how

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.

Today in America, income and wealth inequality has continued to grow at an unsettling pace. The rich continue to get richer, while the number of people categorized as lower class grows exponentially. As Joseph Stiglitz has explained, many theories that are seen as strongly Republican, such as the trickle-down effect, has caused the rich to take money from the poor, and as a result the lower class grows and the middle class disintegrates. The top 1 percent of America’s households currently holds 30 percent of America’s economy, which is much more than other first-world countries and helps to emphasize the extremity of inequality currently in America today. This increased inequality has in turn caused America to become a much more divided society; those born in poverty typically stay in poverty, with little to no chance of self-improvement due to a lack of education provided in their areas. In contrast, those that are born wealthy typically go to better schools, have better health care, and are all but spoon fed information on how to remain wealthy. These two sides of society almost never cross, and this causes the country to be more divided than ever. In order to limit this inequality, drastic changes must be made, such as large corporations paying their fair share of taxes and giving back to the lower class, and minimum wage should be raised. If everyone in America works together, we can raise social mobility and re-unite what has become an increasingly divided country.

Within the United States, there is an unequal collection and distribution of resources. The current unequal or socially unjust tax system is a direct contrast to the social justice theories of John Rawls. The taxation discrepancy has ramifications on many important aspects of our society, such as health care, employment, old age security, and education. These issues affect everyone in our society, regardless of age, race, gender, or sexual orientation. Thorough more equal taxation, we have the potential to create a more society as a whole.

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).

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.

In response to the article, some the information was new but a lot of it not surprising.  It was surprising, however, to read that although Mr. Naets is somewhat more educated and most likely in a higher tax bracket than his parents were, his standard of living is a lot lower than that of his parents.  That is alarming only because we have a lot more opportunities available to us through networking or technology and on a scale that was never available to our parents. Also in Mr. Naets case, he and his wife earn well above the national average which is also alarming because you would think that someone in such a position would not be as worried as someone of the opposite spectrum. It is discerning to think that no matter how hard we strive to for a better life, we will always feel that is not enough.

The divide between the rich and the poor is defined by success. While the wealthy live in a utopian world where everything goes according to their needs, low class individuals live in a dysfunctional society trying to make ends meet. Aside from the obvious differences, society judges you by the size of your wallet. In The Divide: American Injustice in the Age of the Wealth Gap, by Matt Taibbi, he argues about the large wealth gap that most of individuals are oblivious to and sometimes refuse to see. Taibbi goes after the truth, uncovering how white collar criminals walk freely after committing the biggest of crimes, while the blue collars get criminalized and convicted for simple misdemeanors. The wealth gap between these

Symbolic analysts create ideas, identify and solve problems which makes them wealthy. Compared to the other groups, the routine producers and the in-person servers, symbolic analysts acquire more money because of the ideas they are selling. This is the main reason why symbolic analysts’ boat is rising compared to the other groups. Reich claims that they sell their discoveries to global enterprise webs. For example, according to Reich, architect and engineers design buildings and roads, which they sell in big cities. They issues designs and blueprints for museums, art galleries, hotels, houses, shopping malls and

The wealth gap should not be allowed to continue because, by letting the wealth gap continue, people are turning themselves into slaves. People's perceptions on the subject are secured by what is reality. There are solutions to make the wealth gap shrink but it will take education and the commitment of everyone. Who is affected by the wealth gap? If the gap was to shrink who would benefit from it? Wealth inequality is wrong but it can be fixed with education.

Corporations and businesses should take responsibility in devising multiple solutions that help society as a whole. In Joseph Stiglitz’s essay “Rent Seeking and the Making of an Unequal Society” shows the corruption of wealth inequality in society. While, in Ethan Watters’ essay “The Mega-Marketing of Depression in Japan” shows the corruption of Western pharmaceutical companies shaping culture to market depression in Japan. [Drug marketing is a big problem in today’s society since big firms neglect their obligation to share the profits with others in society. Both Watters and Stiglitz offer objections to the economic markets in America as unjust due to market competition, false marketing techniques, opposition to cultural or income differences,

He laments the loss of thousands of jobs and foretells of an economic collapse as jobs grow stagnant. Berman predicted, correctly, that low skilled jobs would never return in demand, and that the economic security of all low skilled workers was at risk. And that high skilled jobs would become the new standard. We are rapidly approaching a time in which an average worker is an unemployed worker. A vast array of skillsets and creativity will become the new base requirements for even the most minimalistic of

In recent times we have seen the income distribution in many developed nations expand, meaning that the gap between rich and poor has grown. Coupled with this is the resultant degradation of economic and social mobility. This serves to show that they there is a tendency for those that are poor, to remain poor. There are a number of causal factors that seemingly predicate this fate of a poverty cycle. The issues that contribute to this range from the education and wellbeing of the individual, societal influences and values, their spending habits, their living conditions as well as their ability to access funding as a means of fuelling entrepreneurial endeavours.