Effects Of Income Inequality In The United States

It’s the simple societies, that will have very few social roles and statuses occupied by the members, social inequality may be very low. Socioeconomic will be increasing because we have such a high rate of poverty in America. Socio-economic inequalities have been rising so much in the European Union and in most of our countries including America are way higher today than in 1980. Which is leading to increasing. These trends are way similar to the ones found in the United States of America and other industrialized economies and reflect whole lot of the combined effects of changes taking place in our labor market, which is linked to globalization and technological change, in social variables, such as household and so much

Neoliberalism is the main cause of the difference between the rich and the poor in the states. It expanded the market efficiency by competitions between individuals, raised a gap between the rich and the poor. Rich people are becoming much richer based on their original properties while poor people are becoming poorer and suffer great economic problems in their lives. This does not only happen between individuals but also between companies. The unemployment rate increased because of neoliberalism.

With so many people living on welfare programs, jobs are not receiving workers, there are more homeless people, and a ridiculous amount of federal money in place to support these programs. The most serious of the many effects of unemployment is the effect on the economy. “Higher unemployment will cause a fall in tax revenue because there is less people paying income tax. Also the government will have to spend more on unemployment and related benefits” (Pettinger). With a fall in tax revenue, the nation’s income as a whole is reduced, which decreases the amount of money in circulation, increasing the United State’s federal debt.

Paper 3 Social Stratification due to Wealth Inequality Background The article upon which I am writing about is titled “If you thought income inequality was bad, get a load of wealth inequality”, it was published by the Huffington Post and authored by Christopher Ingraham. The article explains how a growing wealth gap between the top 20 percent of the United States population and the bottom 40 percent of the United States is the leading cause of socio-economic inequality in America. The author argues that wealth accumulated by the top earners in the United States economy is a greater source of economic inequality in America Wealth is defined by the article as how many assets an individual holds, ranging from stocks, to real-estate and cash.

At the same time, the problem of unemployment also existed. Actually, unemployment remained high in the twenties. Although the government had policies to take income tax in order to balance the income between the rich and the poor, the actual income of the big companies were much more than what they pay for tax. The effort made by government did not help workers effectively. After the Great Depression, the New Deal programs benefited people who suffered from inequality a lot.

The model is supposed to bring renewed prosperity to the United States but it brought more inequality and stripped safety net programs that actually helped most Americans. This lack of assistance means that struggling people are struggling even more and they have less money to spend and to put back into the economy. Since the creation of the Better Business Climate model, government spending on food stamps, unemployment insurance, and other social programs has been cut as

This law increased custom duties by nearly 50% on imports of more than 20,000 types of goods. Many countries, as a retaliatory measure, also increased their import taxes. As a result, world trade fell sharply, which contributed to exacerbating the Great Depression. With overproduction still occurring, this international standstill only made to intensify the already critical situation. The tariff also increased living costs, limit exports and hurt investors as the high tariffs would make it harder for debtors to pay off loans, continuing to weaken banks.

People may ask what do these facts mean? They mean that the wealth gaps in America are getting further apart. The rich are getting richer and the poor are getting poorer. The wealth gaps in the social classes in the United States are getting worse because the haves and have nots are widening, the American dream is getting harder to do, the rich are taking more of the pie and, income inequality is on a record high. In the United States, people are categorized into three main social classes.

This problem is also creating some other problems in American such as increase crime rate is also because of poverty. There is millions of American who cannot afford to get basic necessities of life. Another important point is that because of ignorance of government for this issue, the poverty rate will continue to increase. So based on these facts; I have selected the issue of poverty to solve. Below are the steps that I will take to solve the problem of poverty:  I will promote the policies which will be helpful to create more jobs.

The workers get paid more which means they can buy from other businesses. Of course, the large amounts of investing that people did during the 1920s also had a bad effect as it created an economic bubble. Much like an actual bubble, it can burst once the stock markets failed. Once the prices started to drop, the bubble burst which would lead to the Stock Market Crash of 1929. The tax cuts for the rich allowed for businesses to succeed but it also created an economic bubble which lead to the Great

Lastly, the United States is being accustomed to a level of inequality. Research done by Emmanuel Saez and Thomas Piketty has shown that inequality among the middle class and the rich is nearly as acute as it was before the Great Depression.

Before the 1980’s President Roosevelt’s New Deal policy had the economy flourishing and businesses booming. However, during the 1980’s the United States inequality rates rose, which lead to the Great Depression and World War II. This influx in the market was due to corporations in the U.S not paying

In today’s society, the separation of social classes and the variation of socioeconomic statuses continue to increase. According to “Class in America,” which was published in Race, Class, and Gender in the United States, wealth distribution in the United States has continued to change over the years. It appears that the rich are getting richer, and the poor are getting poorer. Due to the way wealth is distributed in today’s society there are 3.4 million homeless individuals in the United States (Mantsios, 2009). As a result of the wealth distribution in our society, more individuals are being considered lower class as a result of their socioeconomic status.

The United States exhibits wider disparities of wealth between rich and poor than any other major developed nation. I will explain the injustice of wealth inequality as it pertains to race, gender, and socioeconomic class. Race The issue of race as it pertains to wealth inequality is a reality in modern-day United States. One’s race can potentially determine how much wealth one can accumulate, as compared with those who represent the majority. Kochhar and Fry (2014, December 14) found that: The Great Recession, fueled by the crises in the housing and financial markets, was universally hard on the net worth of American families.

According to Robert Reich, inequality is a major problem in the United States because of both economic and political issues. Taking a look at the economic standpoint, one can see the major discrepancies between the top 1% and the other 99%, showing that the United States has the most inequality for a developed nation. But why is this? A point Reich introduced is the vicious cycle; wages stagnate, workers buy less, companies downsize, tax revenues decrease, government cuts programs, workers are less educated, unemployment rises, and then the cycle begins again. The stagnation of wages, when productivity goes up but wages remain the same, causes workers to buy less which is a problem because 70% of the US economy is made up by consumer spending.