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. In fact, 1 in 7 Americans today experience hunger and 16 million children live in poverty.
“There is something profoundly wrong wrong when one family own more wealth the bottom 130 million Americans.” The United States of America has always had economic growth problems. Income Inequality is a big factor for this situation. We are currently in the 21st century and yet we have no improvement on income inequality. In 1984 by George Orwell the low income are the proles who are the incredulous of the story.
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).
Wealth inequality is the unequal distribution of assets within a population. This typically results in a gradually increasing gap, with respect to net worth, that has yet to be filled. One of the factors which contribute to this crescive issue is the rapidly increasing wealth of the richest. This is most evident in the Forbes 400, a list of the 400 richest Americans. In 1982, one needed a net worth of 80 million dollars to enter the list, while the average for the list was 230 million dollars.
As the United States has proven time and time again, a country of concentrated wealth is often no better than one of widespread poverty. After World War I, American wealth and consumerism skyrocketed, and author F. Scott Fitzgerald explores the social implications of this altered economy in his novel The Great Gatsby. In particular, Fitzgerald highlights the way in which one’s perceived wealth was used to determine his or her intelligence, charm, sophistication, and overall worth as a human being, creating the misguided (yet unshakable) notion that to be rich meant to be better. In economist Thorstein Veblen’s opinion, this association between wealth and superiority led to an American landscape which valued frivolity above all else, with inessential
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.
Samuel.2006). Huddle(1990) also found that at all levels of government, the financial losses caused by immigration amounted to $42.5 billion. However, Fix and Passel in urban research institutes challenge this conclusion. They argue that these studies, in particular, are overestimating the welfare consumed by immigrants and underestimating the economic benefits generated through immigration population. According to their research, immigration contributed $50 billion in revenue, which is more than the estimated net loss of $42.5 billion from
They pay more than 70% of federal income taxes.” On one hand, some experts think rich shouldn’t be taxed more because somehow the money was earned. Rich people worked hard to earn it, and their work should be valued. On the other hand, most people think that rich should pay more tax because they get more from the government. Is it ethical and rational to tax more on rich?
“It increased 900 import tariffs by an average of 40 to 48 percent.” On the face of the Smoot-Hawley tariff, it protected the farmers in US. Rather than helping, with the high-tariff, the food prices must be raised for the Americans in the depression. In the other hand, international trade in capitalism has shrunk dramatically. Also, “The Smoot-Hawley tariff compelled other countries to retaliate with their own tariffs.
Besides military expenditures, there are a lot of components that undermines economic growth. Terrorism activities lead to decreases in consumption, export, and investment (Eckstein and Tsiddon, 2004). Eckstein and Tsiddon study on the macroeconomic consequences of terror in Israel. They find that Israel’s GDP would be ten times larger now, if the country were not faced with terrorism between 2001 and 2004. Economic studies also show that terrorist activities can direct and negative effect on foreign direct investment (FDI) (Rasheed and Tahir, 2012).
Tax cuts and the middle class. The most important social class in America is shrinking at an alarming rate. The middle class, the driver of the economy is becoming few and are between. This is impart by stagnant wages and salaries for low skill jobs that need little to no education but also huge tax breaks for the tip top 1% makes the middle class pay for what is lost from them.
In the reading "The Rich Are Different from You and Me," Chrystia Freeland explains the increase of income inequality in wealthy people vs. People under the wealthy in of our society, which wealthy people are about 10 percent of the population and the people under the wealthy is about 90 percent of the population (Pg.52). In the reading it talks about how the wealthy people are overweening ahead of everyone else in our society. The reading shows statistics of growth presented between the wealthiest and the general society and how the wealthiest people in our society are separating their selves from more and more from the general society and are getting ahead of everyone else. Freeland believed that wealthiest people of today started out in
Conflict sociologists see this skewness as a problem in society. The people who become of wealth stay in wealth because they control the power due to the mass amount of money they have compared to the rest of the population. When we say wealthy, we are discussing the top two percent of wealthy people in America. The top two percent of people own over half the total wealth in the United States. Many cities and even states do not contain a single person that qualifies as being a part of the top two percent of wealthiest people in this country.
For this week 's current events I an article read on the Huffington post that talks about the vast wealth gap between Black and White America. According to the post the gap got a bit smaller in the years leading upto the Great Recession but in the past 30 years has exploded as the black and Latino communities have been hit by foreclosures and job cuts. There 's a lot of reasons why there are enormous wealth gaps between minorities and whites in America. The most simple answer is, it takes money to make money. Part of the reason that there 's this enormous gap is because whites have long had higher wages and wealth to pass on from generation to generation.
Were Americans more greedy during the 1980s? The top 1% began to control almost 50% of the US household wealth because of the Reagan tax cuts for the rich and greed. Wall Street business shifted towards more money motivated actions and get rich quick investments. Corporations were more interested in acquiring more assets and smaller companies to gain immediate financial success, instead of investing companies and researching for the future (West, 1994). Greed could certainly account for this new technique utilized in the business world.