Confronting Inequality Summary

Income inequality

The article “Confronting Inequality,” written by Paul Krugman, a professor at Princeton University, emphasizes that the middle class suffers from social inequality and economic inequality. Krugman suggests building a stronger safety net so the gap between the poor and rich can be limited to by raising of the taxes. Krugman uses this claim to highlight the fact that the middle class needs to be stronger and the only way to achieve that is to have a strong safety net. Krugman says the rich use loopholes in the tax system to cheat their way out of high taxes, and the poor pay a relatively high tax compared to what they should be paying. Krugman states if these ideas were incorporated into society, it would link the gap between

These benefits would be only be available to the lower and middle class, leaving the rich without benefits, thus creating income equality. This is not the only time the rich will not receive benefits, but the poor will as Krugman says an increased minimum wage will raise the social status of the poor. Raising of the minimum wage, at the time when the article was written, would allow the lower classes to bring in an increased income annually. The rich are then forced to pay their workers more, which means less money for the wealthy annually. This means the poor would make more money, the middle class would stay the same, and the rich would make less annually, therefore bringing income equality. Krugman suggests the United States should change to more socialistic society as he says unions are needed in the United States. Bringing more unions in the United States would create equal wage distribution and better job stability. Krugman is recommending a progressive policy similar to FDR’s New Deal package that was introduced before WWII. Krugman believes a policy like this “could reduce extreme inequalities in pay.” (602) A minimum wage increase would help the

The rich are able to run an economy on their own, as they do not need a government to support them or hold their hand like the poor do. This leaves the lower class almost lost in a society as rich are able to succeed in life, as the poor struggle to find a job to bring home food. Krugman also states that rich are more likely to go to college and graduate, compared to the poor. This prompts the middle class to buy a house in a good school district, even if it is out of their price range. At the time, Krugman says that health care and repealing the Bush tax cuts would allow the United States to, “use the revenue to pay for more benefits that help lower-and middle-income families.” At the time, an uniform health care system and increased minimum wage could bridge the gap between poor and rich. Without assistance to the middle class and poor, the gap cannot be bridged.

Krugman’s ideas for improving income equality can improve overall social equality. Raising the minimum wage allowed the lower class to finally have a chance in society to survive and not on the streets. More unions would allow better pay and job security. Krugman suggests these ideas for the good of our nation as he feels it would create income and social