People may ask what do these facts mean? They mean that the wealth gaps in America are getting further apart. The rich are getting richer and the poor are getting poorer. The wealth gaps in the social classes in the United States are getting worse because the haves and have nots are widening, the American dream is getting harder to do, the rich are taking more of the pie and, income inequality is on a record high. In the United States, people are categorized into three main social classes.
The following paragraphs will discuss the pros and cons surrounding both sides of this topic and the reasoning that births each one. Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).
1992-2010 data from Wolff (2012). Table 3 represents the share of wealth held by the bottom 99% and top 1% in the United States from 1949 to 2010. Change of wealth distribution is not favorable for the bottom 99% as this class obtaining less and less wealth while the top 1%’s wealth is expanding. The gap between the rich and the poor is increasing. This factor has not only economic drawbacks but social problems are increasing at the same time (Kennickel, 2003).
It began with the world economic crisis in 1929 that affected the American nation the most. The crisis of overproduction of goods provoked the Great Depression. At that time, commodities/goods/items could not be bought because of the limitation of money supply - dollars were tied to the gold reserve. The end of the First World War played an important role in boosting the severe economic crisis. The fact was that the U.S. economy was heavily dependent on defense orders, and, after the end of the war, their number decreased, which led to a recession in the American military-industrial complex.
I have selected this problem because many previous governments have ignored this problem and due to this ignorance this problem is getting worse day by day. I also have selected this issue base on a fact that 15.79% is the poverty rate of America which is the highest among all the developed countries. It means that poverty rate is highest in United States than all other developed countries. This problem has both social and economical concerns. This problem is also creating some other problems in American such as increase crime rate is also because of poverty.
Economic recession in 1960s to 1980s are still like the yesterday’s nightmare for most people in early twentieth century. During this period, , a big trade deficit was caused because more foreign goods floated into US market than capital floated from the US to developing countries. This phenomenon made the economy inside the US face a hard time. Meanwhile, American citizens began to pursue “one of the country’s most cherished myths, the American Dream-a fantasy of social mobility enabled by America’s putative rejection of the aristoristocratic heirarchy structuring the Old World societies of our ancestors”(Deitchman). Lots of people wanted to go from lower class to upper class in order to escape from the life which was becoming harder and harder.
Addressing Inequality The inequality is most knowing for lack of equality or things that are unfair comparisons to from each person, the three main types of economic inequality are Income inequality, pay inequality, wealth inequality, each type of economic inequality has related to money but each type of economic are represented different things such as Income inequality is extent to which income is distributed for a group of people, pay inequality are each person pay is different to their income, for example some people spend more money on supplies than someone else and the last one is wealth Inequality, which is wealth acquired from an individual. The biggest similarity is this economic inequality all has the wealth gap, which is mean differences
In the article, “Do Remote Bosses Cause Inequality?” (Sept. 19, 2015), Froma Harrop claims that “Bosses and their investors are grabbing most of the profits.” The piece details what Harrop says to be a reason for the widening pay gap that’s not exactly economic. The unemployment has fell to a low percentage of 5.1 and productivity gains are present which are supposed to lead to higher wages; lowest wages are essentially falling, although workers are producing and making the needful in the same amount of time. Harrop argues one of the many reasons for the lack of a raise in paychecks: the apparent remoteness of the boss and the employee. Harrop mainly supports her argument through the use of anecdotes and statistics of past and present events
There are people who work 40 hours a week and are still in poverty; this is a highly prominent issue.The uneven distribution of wealth, known as wealth inequality, is a problem that plagues not only America but also the world. With wealth inequality, there are two main issues and one solution to those issues. The problems are that the wealth in America is unevenly distributed and there people in America who work 40 hours a week and still have very little money. Wealth inequality is the root of all problems faced in America.The solution to this problem is to slightly raise the minimum wage so the lower class will be able to gain wealth. In America the difference of wealth between the top tenth of the one-percent and the other 99% is astounding.
The authors point is that the destructive relation between income inequality and happiness affects more poor people than rich people. (Oishi at al., p5). On one hand I agree with the authors on the fact that the poor are the first affected by the negative impact of the relation between income disparity and happiness, because the income disparity can create job and wage insecurity. In fact Job and wage insecurity is increasing, low-income families are rising along with the vulnerabilities that creates, guaranteed pensions are becoming a thing of the past, health benefits are tough, personal debt is greatly increasing, training are declining, and precarious employment are growing. On top of all that the political class is more self-centered and indifferent to the people.