The indexes of inequality in the distribution of income started to increase since the late 1970s and continued the upward trend until now. In addition, the increasing inequality often reflected growing poverty also in the richest countries (including the US and many European countries). The neoliberal policies systematically violated the basic conditions of social sustainability during all the period. This failure had a significant impact also on economic sustainability as measured by the growth of GDP. The stagnation of the aggregate income of middle and lower classes consequent to the increase in inequality and poverty brought about a persisting stagnation of aggregate consumption.
At the turn of the 19th century riots and strikes played an essential role in increasing the amount of positive labor standards for workers, decreasing the profit of industry owners and the national economy, and the rise of consumerism and the middle class. The strikes were very violent; this scared the middle class, which led to their demand for labor laws. Along with this many of the strikes resulted in workers getting a raise in pay, which ultimately led to the growth of the middle class. Although the strikes had a positive effect on the workers the strikes weren’t good for everyone. The strikes played a major role in decreasing factory owner’s profits, and even slightly hampering the economy’s growth.
But if they raise the taxes for the upper class, it can motivate some rich people to move to another country. It also divides America. It can turn the lower class and middle class against the rich and have the rich against the poor and middle class. Two thirds of the US support higher taxes on the wealthy and a higher minimum wage as ways to narrow the wealth gap. The upper class have enough money to pay as much as they tax the lower and middle class.
After the Civil War, the Second Industrial Revolution was established due to America’s rapid growth for industry and economics. Capitalists during the industrial period of 1875-1900’s were either accused of being a robber baron or a captain of industry. Some capitalists leaders who were accused of being a robber baron or captain of industry included J.P. Morgan, Andrew Carnegie, Andrew W. Mellon, and John D. Rockefeller. A robber baron is a business leader who gets rich through cruel and scandalous business practices. The captains of industry is a business leader who wants to better the companies in a way that it would be positively contributing to the country.
Railroads were a hung impact on the United States, it provided faster mobility and hundreds of jobs. In the Gilded Age was when everything went corrupt. The business people were paying off the people in the government to get favors from them. “Gilded” otherwise meant shiny on the outside but not so shiny on the out.
Shortly after, WWII came around and it pulled the economy back up by providing jobs for people. Not only did it provide jobs, but it also changed the way people lived and the ideas of consumerism. People now had more money to spend on things they wanted, rather than barely being able to afford necessities. The transformation of American society after WWII can be seen through suburbanization, the GI Bill, the automobile, effects of consumerism on society
These included literacy tests and a maximum cap on the number of people allowed to enter the country. However, even these changes were seen to be insufficient. The National Origins Act of 1924 was passed, in which the nationalities of immigrants largely determined their likelihood of entering. Western Europeans were shown a greater preference than their counterpart Easterners because of the presence of communism in the east. Immigrants already in the country experienced segregation as well.
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.
The neocolonial period from 1790-1890 was a turning point in latin American history; Latin America experienced rapid changes in industrialization, transportation, and technological aspects that benefited the few and privileged yet came to the expense of a diverse and culturally vibrant native population. New neocolonial principles rooted in the philosophy of progress created a latin society that condoned the exploitation of many native populations. Due to a combination of European influence and latin American political corruption, many native populations suffered politically, economically, and culturally. The political aspect of neocolonialism in Latin America was extremely damaging to the majority of the Latin American population, because
The spoil system was a big issue of corruption in the guilded age. It often hold a battle between the two political parties. Hayes stopped this spoil system. He hired qualified government officials and fired the useless ones, he didn’t care from what party they were, he only cared for the government working properly. During the guilded age immigration played a big role in the improvement of the United States.
As industry exponentially grew after the Civil War, the need for labor and materials to power newly-created manufacturing giants caused new social classes to form: the rich corporation owners and the poor laborers. Unfathomably rich Robber Barons, or plutocratic American Capitalists, dominated the economy and industry and profited from the slave-like work of millions of poor laborers during this time period. Moreover, the poor working class and the rich further divided by distribution of wealth. Therefore, exploitation of capitalism widened the gap between the rich and poor classes of America, and both newly-formed classes developed reasons for the change.
By raising the minimum wage, jobs will be lost by the people who need them the most. This ultimately prevents a larger portion of the population from climbing the economic ladder and living the American
(Alavosus, 56). After the illness spread, there was a shift in power from nobles to the common people. The demand for workers was high and there were fewer workers due the high death rates. The workers who were still alive could demand more money and more rights. (Alavosus, 57).
A decrease of working farmers forced government subsidization, which then caused a big blow to the Roman economy. The last reason for the ruination of the economic side of the Empire was the costs of military funding and the effects of trading. The spread of pacifistic beliefs throughout the Empire led to a decrease in the amount of willing legionnaires, pressuring the government to allow barbarian tribes to work for their military. As the two sides of the Empire drifted apart, they started to fight over valuable resources and made enemies with each other. The failing economy of the Roman Empire eventually grew to be the most significant cause of its monumental disintegration.
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.