Wealth and Inequality in America Inequality The inequality in America has increased over time; the gap between the rich and the poor has become a problem that many Americans don’t see. Inequality is the extent of income which is distributed unequally among the citizenry. The inequality of the United has a large gap between the poor and the rich making it unfair to the population, the rich are becoming wealthier and the poor remain poor. The article “Of the 1%, By the 1%, For the 1%”, authored by Joseph E. Stiglitz describes that there is a 1 percent amount of American’s who are consuming about a quarter of the United States income in a year. Therefore, America’s inequality will continue to grow.
That is an increase from 11% in 2000 according to US Census Bureau data. First, any serious strategy to facilitate the economic growth of the US is obligated to include finding means to increase better paying jobs to aid both people without jobs and those working in low wage positions considered working poor. For example the Economic Policy Institute estimates that half of the jobs pay less than $34,000 a year. Hence it is not very hard to visualize families trying
Due to the extremely low wages, lack of food to support families, and the unequal distribution of wealth, it is clear that there is poverty in America. The first and most common cause of poverty within an average american household is the low wages. There is an increasing number of adults who have low paying jobs, and with the increase in divorces, many people have to support their families alone. Most of the population is actually two times below the poverty line according to their yearly income. According to the New York Times, “[h]alf the jobs in the nation pay less than $34,000 a year... [a] quarter pay below the poverty line…” With the majority of jobs already low-wage, welfare and taxes decrease the already struggling parents’ pay.
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.
In the early 2000’s , 39.9 million people were being considered as poor in the United States. The poverty rate in the States varied among the racial groups, region and age. There is no quick fix to the problem of poverty. However, economic growth and access to education at all levels are some of the solutions to solving
America prides itself on being one of the most effective democratically governed counties. The idea of the American dream is that all people have equivalent political freedoms and a responsive government. However the effectiveness of social equality is being threatened by increasing inequality in the United States. Economic inequality in the US has expanded drastically. The wealth gap has had drastic changes over the past 35 years.
Within the class of those living in poverty, people of color face the largest ramifications of poverty. All the ethnic minorities in this country combined only make up 37% of the population yet constitute 60% of those living in poverty (Poverty Rates). One question must be answered before finding solutions to this problem: what causes the discrepancy of wealth between ethnic minorities and caucasians? The answer lies in the way social disadvantages become a cumulative process. Simply put, any form of disadvantage gives way more easily to other forms of disadvantages, causing a “magnifying” of effects (Lin, David).
Income inequality is rampant, and currently, it 's only getting worse. At this moment, the richest 1% of the population control nearly half of all global wealth. If current trends continue, the wealthiest 1% will have more than the other 99% within just a few years. The question is, however, how much income inequality is acceptable? Like many social issues, there is no easy answer, and people are remarkably divided on the answer.
Today, this issue is due to many more reasons than the dust bowl ruining many things. Focusing on America, our population has grown insanely high since the “dirty thirties”. While population has risen, so have prices. The price on many, many products have gone up in the last decade, making people with a lower pay struggle with living. It’s crazy how many people are unemployed in the US right now and with people believing there will be an 80% stock market crash in 2016, things could only get worse.
“Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by