According to recent polls, the highest earning fourth of families in the US earned around 60% of all income, while the wealthiest in the world earned about 90% of all global wealth. Such a big gap between the rich and the poor is often associated to various reasons ranging from social mobility and life expectancy to transitions in the global economy and current political phenomenons; such as global terrorism, arguably taken into consideration. Piketty, highlights this phenomenon in his seventh chapter, titled, “Inequality and Concentration: Preliminary Bearings” . In this chapter, he puts emphasis on micro-phenomenon of income split through the transition from collective economic level to that of ‘individual level” (Piketty 237). As such, Piketty
Rise in Social inequality have been proven by the wide salary gap between the rich and the poor. For instance (Sawhill & Morton, 2008) states that during the years between 1979 and 2004 “After tax income of the poorest one- fifth of Americans increased by 9%, the richest one- fifth of Americans saw an increase of 69%”. Almost half of the total household salary was earned by “Twenty percent of the richest households in the United States in 2004”as claimed by (Arcs & Zimmerman, 2008), while According to (Haskins, n.d.) 70% of income was gained by 10% of the richest
Economic writer Stephen Moore claimed that the original and traditional American concept of equality as "equality under the law” means that the same rules apply to all, not the same results (29). He states that it isn’t possible to have a classless society because it hinders the economic prosperity of the nation. “Equality of rules ensures that all enjoy the same freedom of contract, which empowers them to maximize value and production, and plan investment knowing they can rely on their agreed contractual rights.” (Moore 29). He basically states that competition encourages the advancement of a nation and the equality under law allows for all to have the opportunity to contribute. He clearly understood Vonnegut’s work to be an attack against communism as he uses it in his argument against equalizing legislature
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
The gap between the rich and poor in today’s society is increasing more than ever. Inequality in nations/countries obviously affects the poverty stricken population more than richer population, affecting every aspect of their lifestyle. Income is a major aspect that causes inequality because, as much as we’d like to think money can’t buy happiness, it can buy food, housing, education and healthcare; all things that affect the general wellbeing of people. For e.g. while in the past 10 years, those with a high socioeconomic status have been consuming diets of better quality, those on the lower end of the spectrum have been consuming less and less quality foods ( D, Weiss, 2014).
Income inequality today is higher than ever with the average annual income of the top 0.1 percent totaling to $6,373,782 and the bottom 90 percent of the population’s household income averaging only $30,997. How could this happen? Some reasons include deindustrialization, technological advancements, and political climate. Differences in wealth is even worse than the differences seen in income rates. The percent of total wealth held by the top 0.1 of the country has increased from 7 to 22 percent.
The cost of housing has sky-rocketed across the country. Many other factors play into what is actually required to live on, let alone raise a family. Furthermore, at a time of record corporate profits and all-time high CEO compensation, it is cruel that we do this to the least well off of our citizens. According to the Pew research (pewresearch), the minimum wage should be at least $12 an hour: Adjusted for inflation, the federal minimum wage peaked in 1968 at $8.68 (in 2016 dollars). Since it was last raised in 2009, to the current $7.25 per hour, the federal minimum has lost about 9.6% of its purchasing power to inflation.
Basically, there are two main different types of unemployment will affect the world today after the Great Depression that affected the United States of America in the 1930s. The Great Depression is the one of the most serious economic crises that spread all over across the country. The Great Depression had diverse effects in different countries as it would increase the cost of living, raising the taxable earnings of displaced workers, improving their children’s economic prospects, and reducing the growth of the disability rolls, increases the unemployment rates among permanent job losers and the huge increase in long-term unemployment. For example, the permanent job losers (job losers not on temporary layoff) increased from 1.7 percent in November
With the combination of those actions causes an upward surge on oil prices which escalated from $14 per barrel of the beginning of 1979 to more than $35 per barrel in 1981. The reasons for that influxes of prices could be the result of the revolution and the war between the Iraq- Iran which caused crude oil prices to triple. The higher oil prices depressed countries for example the United States whose petroleum consumption was reduced and the energy conservation and fuel switching was encouraged. This movement had a huge influence on U. S petroleum demand from 1978 to 1983 fell from 18.8 to 15.2 million barrels per day which was the lowest level since 1971.
This condition is termed as Inequality. Some studies have emphasized inequality as a growing social problem. Too much inequality can be destructive, because income inequality and wealth concentration can hinder long term growth. Early statistical studies comparing inequality to economic growth had been inconclusive. Economic inequality varies between societies, historical periods, economic structures and systems.