Economic Inequality In America

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Inequality is a very large issue today in America and is something often swept under the rug and covered up with media's headlines and distractions. If we could just momentarily rewind and go back to the early 1920s where our unemployment rate reached an astronomical height briefly reaching an exceedingly high rate at 11%, however, future president Herbert Hoover, however, current commerce in secretary convincingly convinced major industrial leaders to voluntarily increase wages and production in order to help out this drowning economy. As the economy grew due to an increase in wages and production it, unfortunately, crashed again during The Great Crash in 1929.During this time since less than 1% of any American people owned any stock, Treasury…show more content…
The US exceeds that average by about 6 points, standing at 38.Comparably America is economically similar to countries such as Chile, Turkey with a Gini index of 40 and South Africa has one of the worst income inequalities in the world with a Gini index of about 63 just to name a few who also are statistically struggling with inequalities as well.This concentration Tax and transfer policies together reduced income inequality slightly more in 2011 than in 1979. While there is strong evidence that it has increased since the 1970s, there is active debate in the United States is regarding the appropriate measurement, causes, effects and solutions to income inequality.Notably, for both the wealthy and not wealthy, the process of accumulation or the rich use their money to earn larger returns and the poor have no savings with which to produce returns or eliminate debt. Unlike income, both facets are generational. Wealthy families pass down their assets, allowing future generations to develop even more wealth. The poor, on the other hand, are less able to leave inheritances to their children leaving little or no wealth on…show more content…
Robert believes we’re facing a vicious cycle in which more and more of the nation’s resources are going to a smaller and smaller sliver of people at the top who, in turn, are exercising more and more political power over how the economy. One of the virtuous cycles Robert tried to give accreditation to progressing years like the 1914 basic bargain explains the “virtuous cycle of higher living standards, more jobs, and better wages,”(Reicher). Although the economy collapsed just fifteen years later in 1929 he explains there are indeed two sides of the broken bargains.Back in history Henry Ford announced he was going to pay asseblemy line workers 5 dollars a day this was three times typical assembler would their pay an employee. Ford gained employees as customers due to the fact they could afford it being paid so well and over the years they more than doubled in profits. The role that the gave the wealthy tax breaks is what ultimatly lead to the downfall america, alot of current situations have emerged based on the greed of handing out tax breaks and bailing out businesses. Previously mentioned the tax cut for wealthy went from 73% all the way down to 23% who do we believe picked up for that slack of coarse
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