Revenues and benefits go to the wealthy at the expense of everyone else. For instance, the middle class is progressively shrinking. According to White House’s Council of Economic Advisers, the percentage of people who are middle class has fallen from 50 percent to 42 percent. On the contrary, a 2012 report by the Congressional Research Service reveals that the wealthiest 10 percent of households went from controlling 67 percent of the country’s wealth in 1989 to almost 75 percent in 2010. Moreover, this uneven distribution of wealth has contributed enormously to increased poverty and deprivation in the US.
In Peter Van Buren article, Goodnight American Dream: The middle Class is Now a Minority, Van Buren details this division. Once representing 62% of Americans the middle class went from the backbone of our country to a minority. Due to the growing social inequality gap since 1970, the middle class is disappearing at a steady rate, now representing 43% of all Americans. This division of social classes divide the nation unequally as more people are falling to the lower class America. In 1970, 29% of the nation income went to the upper class of America, now it is staggering 49% of the national income will go towards the already wealthy (Van Buren).
Economic inequality has become a major concern in almost every corner of the world, causing underprivileged people to be trapped in poverty with little to no chance to improve their socioeconomic status as a result of the uneven distribution of economic variables between different groups in society. According to the Organisation for Economic Co-operation and Development (OECD), the gap between the rich and poor in its member countries has widened over the past 30 years. The average income of the richest 10% of people was about nine times greater than the income of the poorest 10% before the onset of the global economic crisis. However, inequalities, which emerge in the job market are often established during education, thus, putting those at
So to summarize my understanding of the simplest way to describe the causes of inequality are; rent-seeking activity and the rise of The Predator State, then tax policy, macroeconomic policy, corporate governance and regulation, or lack thereof, decline in unionization, globalization, technological change, and finally, education. These are all due to the failure of government to regulate capitalism. And because of this we have a super wealthy upper
As the rich gets richer because he is living a rich life and the poor gets poorer because he is living in poverty. Poverty has numerous causes and some of them are very basic. A few experts suggest that poverty is caused due to lack of sufficient employment opportunities and lack of sufficient food . The basic factors that may result in poverty are: insufficient education and employment opportunities, overpopulation, inability to meet standard of living and cost of living,certain economic and demographic drifts, the unequal distribution of assets in the worldwide economy, welfare incentives and environmental
The United States lost so much money that incomes were reduced by 40%,” (Degrace). Overall, The Great Depression had many effects on society, including the day to day struggle of the American people, the effect of the Dust Bowl on agriculture and the economy, and the evolution of the role of the President. The Depression grew increasingly worse during Herbert Hoover’s time in office. Herbert
Fitzgerald shows how there is an affect on their personalities Due to the amount of money they have. In “The Great Gatsby” the three class structures are, old money is in the east egg, new money is in west egg, and poor in the valley of ashes.The old money is the people who grew rich before the new money class. New money in west egg is full of a bunch of people who have recently become rich. The poor, valley of ashes, is the low-income group of people who don't make a lot of money and are left in the waste of the rich. in an article written about the social status in Great Gatsby it says “ The characters in the
The authors point is that the destructive relation between income inequality and happiness affects more poor people than rich people. (Oishi at al., p5). On one hand I agree with the authors on the fact that the poor are the first affected by the negative impact of the relation between income disparity and happiness, because the income disparity can create job and wage insecurity. In fact Job and wage insecurity is increasing, low-income families are rising along with the vulnerabilities that creates, guaranteed pensions are becoming a thing of the past, health benefits are tough, personal debt is greatly increasing, training are declining, and precarious employment are growing. On top of all that the political class is more self-centered and indifferent to the people.
Everynight over half a million Americans will fall asleep without a home, they are homeless in one of the richest countries on the planet. Capitalist countries naturally have an imbalance of wealth and thus the citizens of these countries often face the moral conundrum of charity and humanitarian aid. In many smaller cultures the dependency of the few is the burden of many however when discussing large nations and the suffering of hundreds of thousands one must consider factors such as population capacity, resource management and long term dependency. When such factors are considered it becomes much harder to maintain a from each according to his ability and to each according to his need system. Large nations cannot bear the burden of homeless,
A lot would think that there isn’t enough food being produced for approximately 7,4 millions of people. Let me tell you something, it actually is. The “problem” is that there is more than enough to go around. The rich are getting richer meanwhile the poor are getting poorer. In such a plight, the wealthier are the ones who could unquestionably use a bit of their filthy lucre in order to dictate how the economy operates.