Revenues and benefits go to the wealthy at the expense of everyone else. For instance, the middle class is progressively shrinking. According to White House’s Council of Economic Advisers, the percentage of people who are middle class has fallen from 50 percent to 42 percent. On the contrary, a 2012 report by the Congressional Research Service reveals that the wealthiest 10 percent of households went from controlling 67 percent of the country’s wealth in 1989 to almost 75 percent in 2010. Moreover, this uneven distribution of wealth has contributed enormously to increased poverty and deprivation in the US.
The middle class want to become rich and the low class only wants equality.” Orwell’s predictions of the party, the government in modern society, rises to power and the poor stay poor. In LA Times “Income Inequality makes the rich more scrooge-like, study finds”, “Since the 1980’s -- the end of a 30-year period… wealth has grown increasingly concentrated at the top of the economic ladder, while low-income Americans have commanded a smaller and smaller share of the nation’s wealth.” *add where quote is from* ”... top 5 percent of American families saw their real income increase 74.9 percent… the lowest-income fifth saw a decrease in real income of 12.1 percent… Sharply contrasting with the 1947-79 period… with the lowest income group actually seeing the largest gains.” Based on a video of Wealth Inequality in America, “ The richest (1 percent) is now (2012) taking up almost a quarter (24%) of the national income home; in 1976 they took home only 9%; meaning their share of income has tripled between 30 years.” *add where quote is from*“CEO’s of major corporations earn nearly 300 times more than an average worker.” How is it possible that a CEO earns multiple times more than a regular
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).
Wright Mills, wrote that American society had become ‘less a pyramid with a flat base than a fat diamond with a bulging middle’”. Mills making this statement in 1956 shows just how long the United States has had to change its economy and society. President Obama’s chairman of Council of Economic Advisers (Professor Alan Krueger) “Has shown how the size of the American middle class (households with annual incomes within 50 percent of the midpoint of the income distribution) has been heading backwards from a peak of more than a half in the late 1970s to 40 percent now”. This decrease makes the American Dream look more like a myth, than a possibility for the American citizens living under the poverty
Rise in Social inequality have been proven by the wide salary gap between the rich and the poor. For instance (Sawhill & Morton, 2008) states that during the years between 1979 and 2004 “After tax income of the poorest one- fifth of Americans increased by 9%, the richest one- fifth of Americans saw an increase of 69%”. Almost half of the total household salary was earned by “Twenty percent of the richest households in the United States in 2004”as claimed by (Arcs & Zimmerman, 2008), while According to (Haskins, n.d.) 70% of income was gained by 10% of the richest
2.1 Introduction Poverty is a worldwide issue. All the nations around the globe face the issue of poverty, yet there are a few nations which are poorer than others like the developing nations in Africa, Asia and Latin America. The poorest person in a developed country may be better off than an average citizen of many developing countries. The defination of poverty differs in different regions around the globe. As indicated by the United Nations' Human Development Report 1996, the average per capita income of the poorest one-fifth of Americans was $5,814 per year in 1993.While in Tanzania, average per capita income was 580$ per year which is ten time less than that of the Americans .
Social Class and Inequality: Video Reviews for Lesson Eight Introduction There is no denying that social inequality is getting worse in the US. The Gini index, which is the most widely used measurement of income disparity, used to be 34.6 in 1979; now it sits at above 40 (GINI Index for the United States, 2018). To put this into perspective, the number makes the US the 4th most unequal country—trailing behind Mexico, Chile and Turkey—in 37 major economies surveyed by the Organisation for Economic Cooperation and Development (OECD Income Distribution Database (IDD): Gini, poverty, income, Methods and Concepts, n.d.). What are the consequences of social inequality in developed countries like the US? Who does it affect?
In fact the washington times researched that Normally immigrants would pick the harvest at a low price and because many Americans do not want to do this job it doesn 't get done. Immigrants do the jobs people don 't want to do such as a janitor, cleaner, or construction worker. Without these immigrants to fill these positions it would have an even worse outcome. Businesses and restaurants might not be clean and get shut down for sanitary reasons. In fact the Washington times did a research and found out that “It is important to note that immigrants or their children founded more than 40 percent of U.S. Fortune 500 companies — turning their American dreams into American jobs”(engler 1).
For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned
1) Watch: The Shrinking Middle Class: Coping with Loss and Defining the Middle Class (summarize, what 's your opinion?) Studies show that 85% of respondents would agree that it is harder to live in the middle class today than it was in the past. Family income for the entire middle class has been gradually dropping since 1950s all the way to present time. In order to fix this economic problem according to the opinions of Mark Levine, a Pacifica Radio Host, is to raise the taxes on the rich instead of making the poor pay more. On the other hand, Mike Lane, of Intelephant Strategies, wants energy independence that creates jobs both in energy creation and in manufacturing and also citizens to support small businesses.