Wealth identified how you lived to the people surrounding you in society. It was wealth that built you and destroyed you. Wealth overshadowed true love and beauty in The Great Gatsby. Those who had old money looked down upon those with new money, while those who were not rich was ignored by society. Wealth and the desire to be accepted by the society distracted the characters from making moral decisions.
Brandon King asserts, “We may have genuine inequality issues and a sizable divide between the rich and poor, and we might have an economy that is recovering too slowly for public interest” (613). What Brandon King is saying is that those who don't have as much power as the upper-class, tend to lose hope because lower and middle-class people see those at the top as superior. Sometimes we tend to believe that inequality has become inevitable to overcome because it’s been going on for long. David Leonhardt writes in his essay, “we could end up with a society in which the rich separate themselves from everyone else, perpetuating their wealth from one generation to the next (543). His point is that there can be something for the inequality between the rich and poor.
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 widened gap in income distribution inhibits equal opportunity distribution. In addition to being inaccurate, today’s distorted version of American Dream is also prejudiced, making it unattainable for the bottom 90 percent of Americans today. In By Our Own Bootstraps Michael W. Cox and Richard Alm believe, “There’s no denying that our system allows some Americans to become much richer than others.” (Cox & Alm 66). How is this kind of imbalance possible? Tax shelters for the wealthy and tax burdens on the poor promote Cox and Alm’s theory.
In the late 1920s, a culmination of factors, both foreign and domestic, led many American families into unemployment and poverty. The Great Depression was a time of widespread poverty and forced migration, as it was common for young children to beg for money and search trash cans for food. Accordingly, different geographical regions were impacted more than others, which divided Americans. The economy experienced a greater wealth imbalance than ever before, as a small portion of Americans controlled an disproportionate percentage of the nation’s wealth. Additionally, the unemployment rate reached an all time high, with a quarter of Americans unable to find employment, further establishing socioeconomic divide.
Inequality is as bad for the rich as it is for the poor. Society is poorer as inequality becomes greater. (Friedman, 2011) The impacts of inequality shows up in poorer health, lower educational attainment, higher crime rates, lower spending of social capital, lower cooperation with and trust of government. (Friedman, 2011) On the other hand, inequality can also mean uneven distribution of wealth, which causes the poor to become even poorer. Poverty, hunger, homelessness, illiteracy, preventable disease, polluted air and water, and most of the other ills that beset humanity, have the same root cause: the inequitable distribution of planet’s wealth and resources.
I have selected this problem because many previous governments have ignored this problem and due to this ignorance this problem is getting worse day by day. I also have selected this issue base on a fact that 15.79% is the poverty rate of America which is the highest among all the developed countries. It means that poverty rate is highest in United States than all other developed countries. This problem has both social and economical concerns. This problem is also creating some other problems in American such as increase crime rate is also because of poverty.
Water and food related diseases that occur simply because the poor cannot afford “safe” foods. Ultimately, poverty is a major cause of social tensions and threatens to divide a nation because of income inequality. This occurs when the wealth of a country is poorly distributed among its citizens—when a tiny minority has a majority of the money. Wealthy or developed countries maintain stability because of the presence of a middle class. However, even Western countries are gradually losing their middle class.
There are a lot of drawbacks to those who have low-income such as housing stability and economic development. Even with economic development, working conditions are harder due to Global income. When comparing the Gross Domestic Product, comparisons show the richest nations in the United States are thousands of times more productive than the poor
There is a profound gap of wealth between median black and white families, In Race, Wealth, and Intergenerational Poverty, Darrick Hamilton, Professor of Economics and Policy, and William Darity, Professor of Public Policy, discuss the causes of this gap, and measures that can be taken to resolve the disparity. Hamilton and Darity assert the claim that we live today in a post-racial America is false, largely due to the fact that the disproportionate wealth gap between median white and black families exists. They present statistics from a 2002 survey, demonstrating the gap of net worth between white and black families to support this. Hamilton and Darity, using this evidence, dismisses the assertation that race is no longer a determining factor in one’s life chances, which many claim is so gesturing to the election of President Barack Obama, but the evidence of the wealth gap supports the contrary. As to why this gap still exist, Hamilton and Darity dismiss the two most proposed reasons.
The first debater is Steven Camarota. Camaroto’s view is that the “less-educated” Americans are losing their jobs to immigrants (Camarota). In his research, he argues that at the time his article was written compared to November 2007, there were more immigrants working than the natural born U.S. citizens. To prove his argument he lists studies done by other researchers that show how the employment of immigrants affected the inexperienced American born citizens, like citizens under the age of 29, less educated black men, as well as teenagers (Camarota). His outlook is that by not limiting immigration, it is directly affecting the American citizens who are poverty stricken due to their
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.
What causes a recession is inflation. Inflation is a general increase in prices and the fall in the value of money. Falling confidence in the consumer can be a major cause in leading to a recession. Also, manufacturing orders starting to slow down in the economy, this can lead to less money being produced throughout the economy resulting to a loss of jobs. Since this causes a high unemployment rate many of the people will get on a government welfare program to pay for their family and that is even more money being lost in the economy, making the nation fall into a deeper recession.
Tax cuts and the middle class. The most important social class in America is shrinking at an alarming rate. The middle class, the driver of the economy is becoming few and are between. This is impart by stagnant wages and salaries for low skill jobs that need little to no education but also huge tax breaks for the tip top 1% makes the middle class pay for what is lost from them. Not only are the percentages that the middle class is taxed are high.