The article says, “While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall.” (Stiglitz 2011) While the rich are getting higher incomes prices the poor are getting higher income by taking it from the one in the middle which therefore, makes them get a lower income percentage. America has fallen behind because of not being an equal country to the population by the income equality there is a huge gap between the income being earned by the poor and the rich. The rich are wealthy and the poor depend on the government for everything. As stated in the article, “America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran.
Effects of income inequality The impact of economic inequality affects a large part of the population in different ways. The most obvious effects of wealth inequality are that it creates social classes. The first subdivision that we can draw is that population is split in two categories: the rich and the poor. There are a variety of economic effects caused by income inequality. Wealthy people have a higher income and consequently spend less of each marginal dollar, which caused the economic growth to slow.
At the same time, the problem of unemployment also existed. Actually, unemployment remained high in the twenties. Although the government had policies to take income tax in order to balance the income between the rich and the poor, the actual income of the big companies were much more than what they pay for tax. The effort made by government did not help workers effectively. After the Great Depression, the New Deal programs benefited people who suffered from inequality a lot.
In Peter Van Buren article, Goodnight American Dream: The middle Class is Now a Minority, Van Buren details this division. Once representing 62% of Americans the middle class went from the backbone of our country to a minority. Due to the growing social inequality gap since 1970, the middle class is disappearing at a steady rate, now representing 43% of all Americans. This division of social classes divide the nation unequally as more people are falling to the lower class America. In 1970, 29% of the nation income went to the upper class of America, now it is staggering 49% of the national income will go towards the already wealthy (Van Buren).
1 reason many young adults drop out of college is an inability to juggle school and work” (Johnson). Finishing college is the most decisive forecaster of prosperity in the workforce and the inconsistency in college completion between children of rich and poor families duplicated since the late 1980s (McGlynn 55). There is many people that go to college, but because of the cost they don't get through college. The elevated costs of college cause not only students to struggle paying for college, but also to struggle financially paying for college when they are done. In many cases, after graduating, young adults who don’t find a job will become poorer, increasing the gap between the rich and the
The Cost of College Becoming Overly Expensive? According to Student Loan Hero, in 2012, 71 percent of students graduating from four-year colleges had student loan debt. This is only increasing year after year. The decision on whether to go to college or not is becoming easier considering the huge financial stress it will put on a person for the rest of their lives. Although a college education is becoming a necessity and leads to great success, it is overpriced, leaving most of us Americans in tremendous debt.
Homelessness has existed since the beginning of civilization, usually because a lot of people at the time are too poor to buy a house. As time goes on, the rate of homelessness rises as the population rises. Homelessness then was mostly caused by a family’s history of being homeless, drug abuse, mental disorders, and tyrannical leaders forcing his people into poverty. In modern times, several organizations are now trying to end homelessness by building cheaper housing projects more affordable to the poor and homeless shelters; these projects usually cost a fair amount of money.
The writer states that we are without a doubt, living in a brutal economy and that it seems that colleges are getting rich off of their students. To further back up his logos, he states that Tuition covers only 60% of what it costs to give a student education, and that the remainder of funds comes from what colleges receive in endowments, grants, and gifts. The cost of basically everything has spiked up resulting in higher costs of living. Just the thought of this debt that the kids will have to pay after college is thought to cause stress. It may appear that throughout the essay, Zinsser views the students lives in a completely negative way.
Have you ever ran into issues due to your social class? In The Outsiders, the Greasers and the Socs struggle with similar and different problems. Due to their different environments, they deal with their own issues. However, even though the Socs and Greasers grew up in different environments, they have similar issues and obstacles they have to overcome. Additionally, their problems are addressed more in “Alarming Number of Teenagers are Quitting School to Go to Work”, and “A Generation Struggling: Rich Kids are Losing”.
The unemployment rate is rising every day and the something needs to be done to stop this. Many youth are unemployed because they have just come from high school and they do not have enough work experience to get a job. Adults are more likely to be unemployed because of physical and mental health challenges. Adults also tend to be unemployed because of cyclical, structural and frictional unemployment. Unemployment also goes into hand with homelessness and panhandling, because there is not enough jobs people are ending up homeless and looking for other ways to get money.
Poor quality primary education leads to low high school and college graduation rates, high unemployment, reduced wages, and increases in illicit activity. The article in The Economist suggests that one of the primary reasons for the high dropout rate (almost 35% among the black population) is that teens in poverty stricken communities don’t understand the long term impacts of the decision to leave school. Furthermore, 35% of black men without a high school diploma are continually unemployed (up from 10% in 1965), so the cycle is perpetuated from generation to generation. Children grow up with their role models lacking education and gainful employment, encountering discrimination, and experiencing frequent jail time. One in three black men spends time in prison, and two out of three black men with no high school diploma experience imprisonment at some point in their lives.
This income gap continues to grow while the amount of people in the middle class has been shrinking. Middle class families are calling out for help. If the U.S. government does not take immediate action all of America will suffer. When the middle class turns poor the wealthy will have no one helping them become richer. The wealthy are too ignorant to acknowledge that the middle class is suffering.
Many would argue that society’s high poverty and unemployment rates are branched from individual failure. It’s believed to be because of the schools in urban communities are failing to properly educate our children. Social class, the haves and have not’s are reasoning for the economic disparity in American. Some individuals are more fortunate than others. Social Class is ‘’a division of a society based on social and economic status: people from different social classes and walks of life” It’s said people living in poverty have lower graduation rates and are more likely to drop out of school.
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. In addition, the economy will not do so great in the near future if the government does not clean up its act and fix the problems that are going on; such as the national debt and how it can be causing a recession in the United States. With the contributing factors of how the taxes should be taken care of, certain healthcare programs draining the little money the government has to offer, government welfare programs not being more supervised by not allowing people to take advantage of it, and lastly not allowing the government to borrow so much money from foreign countries to make our debt rise to the
With only a margin of jobs accessible to adults in the transition from college to their dream occupation, it leaves many unemployed students with a huge sum of debt. Debt has become a situation where it is reduced into a smidgen of a problem due to the glamorization of the once free money. Students and adults alike, are unable to see beyond the available money. And when they have collected debt, it seems as if they have become immobilized at a dead end. Scurlock makes a moving documentary as he focuses on the effects of debt that occur to students.