Wealth Inequality

1242 Words5 Pages
In recent years the way wealth is distributed in the United States has caused a huge drift between the upper class and the lower class. The country is becoming a banana republic in which most of the wealth is owned by the top 1%. Although the United States is a democracy I believe that in recent years, it has become a plutocracy nation. The wealth inequality plays a major role in this. If this trend between the upper class and the lower class continues it could cause many problems. For example, income inequality has an effect on an individual’s health, and could also cause economic growth failure. First of all the United States is becoming a plutocracy nation. Having a country run by only a relatively small amount of people could be an issue…show more content…
Having a wide gap between the upper and lower class doesn’t benefit the economy instead has a negative impact on it. For example, according to the Washington Post, “As income inequality grows, more and more resources are concentrated in the hands of the wealthiest. So, the idea goes, the wealthiest are better able to steer policies in directions that protect inequality at the expense of growth”. Because most of the wealth is in the hands of individuals who are at the top they have the power to do things their way. On the other hand, consumer spending plays a role in the economic growth of a country. The Washington Post states, “Consumer spending makes up about 70 percent of the U.S. economy. And lower-income people have a greater propensity to spend their income than wealthier people do. So, if more and more of the nation 's income is concentrated at the very top, that could depress overall demand and weaken economic growth”. Due to the way wealth is concentrated it also affects the nation’s economy. Most of the consumer spending depends on individuals who are at the bottom. Having a country which is controlled by the wealthy affects the growth of the economy. Although income inequality has many negative effects on a nation, it also is a symbol of growing success for the rich and the poor. For instance “income inequality (different incomes among different people with different skills and…show more content…
It also causes a nation to not run as a democracy. The United States is already a plutocracy nation because most of the wealth is going to the top of the pyramid and they have the most power to control policies around them. While individuals who are at the bottom are minimum wage workers who don’t have many opportunities to excel in their careers and generate more income. Having a gap between the way wealth is distributed causes health problem for those at the bottom because they have higher levels of stress. It also affects the economy because consumer spending depends on those who are at the bottom end of the spectrum. Having a nation controlled by relatively a small amount of people is certainly not good because these people own most of the wealth in the United States. The United States has already become a plutocratic nation due to the way wealth has widened between the upper class and the lower
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