Income Inequality In The 1970's
Taking advantage of people and selfish behavior is very evident in today’s world. Since the beginning of the 1970’s, income inequality has grown significantly. Income inequality has been a major problem in the U.S. historically and is a major problem in today’s society as well. These problems need to be addressed because it affects many aspects of life which include educational opportunities, economic growth, job creation and overall standard of living.
The problem with income inequality is that the majority of Americans can’t live their lives the way they want to. America’s workforce doesn’t make enough money to support the economy in a healthy way. According to the U.S. census data, about half of America’s population lives in poverty
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Following the Great Recession, “record-low interest rates were supposed to spur the housing market, making homes more affordable. While that is the case, housing prices have leveled off in recent years as the average American still doesn't have enough income to buy a home.” (Amadeo). Also the Fed kept the Treasury rates low. Unwillingly causing the top 10 percent to gain more of the stock market (even thought they already “own 91 percent of the wealth in stocks” (Anadeo)). All of these causes of income inequality can’t come without the …show more content…
Kids in low income families tend to go to low quality schools and are not able to go to college. This causes the workforce as a whole to be less productive. Now here is the real mind-bender. “As income inequality grows, more and more resources are concentrated in the hands of the wealthiest. So, the idea goes, the wealthiest are better able to steer policies in directions that protect inequality at the expense of growth.” (Plumer). This causes lower consumer spending. How are people supposed to buy things and make the economy grow if they can afford to buy anything because the company they work for is more worried about themselves profiting? Well people end up taking out bank loans and mortgage loans. Banks run off of other people’s money. The economy would not be able to survive without loans. “People at the lower end borrow more to keep afloat, while those at the top end have plenty to lend.”(Plumer). This is what causes economic recessions and credit
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