Economic inequality is the uneven distribution of wealth and differences in economic security found in each individual in a specific country or region. Today, the topic is being discussed profusely by the American presidential candidates and by many writers around the world because of the beliefs of whether there should or should not be wealth redistribution policies put into action. Larry Schwartz, the author of “35 Soul-Crushing Facts about American Income Inequality”, makes a valid claim that economic inequality is the foundation of the problems that the entire American population face such as poverty and a hindrance of economic growth. To begin with, Schwartz has an exceptional argument that the high rate of economic inequality, like is
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.
The level of wealth inequality from the years 1967-1970 was higher than the level of income inequality from that same time. It would seem that a higher level of wealth inequality is a standard of the American economy since it was higher than the level of income inequality in all three eras. As for the specific amount of the yearly average wealth controlled by each fractile, using the information from Fig 6, we can see that the top one-hundredth percent fractile was in possession of 72.37% of the yearly average wealth from the years 1967-1970. The next nine-hundredth percent fractile controlled 16.06% of the yearly average wealth from the years 1967-1970. The four-tenth percent fractile after them had 5.95% of the yearly average wealth from
In the essay, “Richer and Poorer” written by Jill Lepore, and published in The New Yorker on March 16, 2015, the author discusses the income inequality in the United States and uses the rhetorical stages logos, ethos, and pathos as methods for trying to inform the educated middle class about the economic inequality and the effects on the individuals. Jill Lepore used various other sources to prove her point. Using the Gini Index, Lepore states that “income inequality is greater in the United States that in any other democracy in the developing world” (1). She goes on to give a few statistical points influencing her statement on how the inequality has increased throughout the decades. Including how in between 1975 and 1985, for U.S households from .397 to .419; compared to other countered such as Netherlands.
The National Standards report conducted by the IRS (“Internal Revenue Service”) reports that the average American spends $570 in expenses this includes Food, Clothing Housing and Uncategorized Items (IRS Collection Financial Standards). The 24 metropolitan cites hold more than half of the national population within them (“Population Density for U.S. Cities Map”). Accordingly, the average American citizen spends the largest of his income on food, but the average metropolitan resident spends at least half of his income on housing. To discourage the vast inequality between the financial classes in America, the following step may be adopting economic policies and developments in foreign countries are benefiting from or conversely introduce untried theories in government economics into reality.
Most Colombians are being forced out of their homes and forced to live on the streets. Some are threatened and harmed and are pulled and have to live on the streets. Paramilitaries will enter a region and start to execute local community leaders. This right is being broken by small armies destroying the civilians and also harming them and sometimes killing them. Other problems currently in Colombia are deforestation and the environmental issues.
The problem of income inequality is not something new, but it is something that people must worry about because it is affecting not only our wallets, but our communities as a whole. I agree on the author’s point of view about income inequality in the United States his position is very similar to another Robert Reich documentary called “Inequality for all” where he mentions all the aspects that brought United States economic system to a hold just to help a fraction of all population one of those systems was education where before the nineteen eighties it was cheaper to go to college than nowadays or the fact that workers were pay almost the same as any other for their sacrifice . Going back to the video on debate he mentions how policies changed
In the story “The Upside of Income Inequality”, Gary S. Becker and Kevin M. Murphy effectively express’s the importance and need for income inequality in our society. Furthermore, Holly Ellyatt’s newspaper article Income Inequality: Is It Good For Everyone? serves to also point out that economic success and greater productivity is linked to “income inequality”. Although it may seem extremely unfair for someone to make up to two hundred and fifty times as much money as someone else, this notion of “income inequality” actually benefits the society as a whole by encouraging others to work much harder in life and better themselves and their education.
In order to tackle economic inequality in the United States, we must first establish that it is a problem that needs to be solved. American citizens currently live in one of the wealthiest nations in the history of the world, a feat only possible by the economic systems that are currently in place. But who benefits from this wealth? When the top one tenth of one percent owns almost as much as the bottom ninety percent, it is clear that our current economic systems are benefitting the prolifically wealthy. This wealth inequality extends beyond income, but includes; quality of health care, education, and political representation.
Inequality has been around since man first started to gather in groups. Since the time of the hunter gathers into the middle ages. Today in the United States inequality is worse than it has ever been, even with the significant dip between the 1940s and the 1970s. The increase in inequality is not limited to the United States but it is happening the fastest here. We have to look at the different factors that have played a role in the increase which are: technology, the decline in manufacturing and increase in globalization, and government policy.
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.
Income inequality had an enormous impact on the United States’ history with the Great Depression that occurred in 1929. The principal impact of income inequality is surely the poverty rate that increases in the United States because a lot of the income goes to the richest population. As explain in this paper there are a variety of different technics to calculate the inequality within a country, some methods are more reliable than others. The most commonly used method is the Gini coefficient, which can help to compare the level on inequality between countries. In order to reduce the inequality in the country, the government try to found some solutions.
Income inequality refers to differences in the distribution of income, meaning the gap of income between the rich and the poor in a nation (Shin, 2012). The level of this inequality depends on many factors, for instance culture, volunteering, the state of the economy,