Inequality In The United States

Based on freedom and equality, America is today the country the most unequal amongst developed countries. Today there is a very big difference between the ideal, what Americans think and the reality of the income distribution. There is only a very small share in the middle class. This is a major crisis in the United States indeed, 1 per cent of the rich have 40 per cent of the country’s wealth.

Kaitlyn Johnson English, 008 September 29, 2015 Inequality Inequality has been a major problem all over the world. Not just with race or gender, but now ones' income puts them aside from others. and they are catorgarized. Gary S. Becker, a Noble laurete in economics, and Kevin M. Murphy, a professor at the University of Chicago and a recipient of a 2005 MacCrthur "genius" fellowship, believe that a higher education equals higher income. Paul Krugmam, a teacher of economics at Princeton and the city University of New York, uses people who have had an impact on America.

The root of the inequality issue lies in the government policies, as they hold the power to determine where the money lies on the spectrum of the rich, middle class and the poor. Normally, when an economy is suffering, employment as well as wages adjust accordingly and sales as well as profits suffer as well. However, because of this inequality employment rates and wages actually suffer while the sales profit. Political forces, as much as economic ones are what leads to inequality. As the government controls the distribution of sources as well the distribution of income that comes from a market.

According to Robert Reich, inequality is a major problem in the United States because of both economic and political issues. Taking a look at the economic standpoint, one can see the major discrepancies between the top 1% and the other 99%, showing that the United States has the most inequality for a developed nation. But why is this? A point Reich introduced is the vicious cycle; wages stagnate, workers buy less, companies downsize, tax revenues decrease, government cuts programs, workers are less educated, unemployment rises, and then the cycle begins again. The stagnation of wages, when productivity goes up but wages remain the same, causes workers to buy less which is a problem because 70% of the US economy is made up by consumer spending.

A common explanation for the rise in income inequality refers to the contribution of institutional and organizational factors (Fortin & Lemieux, 1997; Morris & Western, 1999; Neckerman & Torche, 2007). For example, Fortin and Lemieux (1997) examined the linkage between institutional changes and the rise in inequality in the United States during the 1980s, with reference to three institutional changes – de-unionization, minimum wage, and deregulation. Their first finding was that de-unionization had a significant effect on the rise in inequality for men but not for women. The second tenet was that the change in minimum wage affected the rise in income inequality, but mostly for women. This change in minimum wage during the 1980s contributed

Today, there are endless arguments about the existing of the American dream. In “They say, I say” by Gerald Graff, Cathy Birkenstein and Russel Durst. There are four article that I have evaluated. The upside of income inequality – Gary S. Becker and Kevin M. Murphy, American Dream: dead, alive, or on hold – Brandon King, Bring on more immigrant entrepreneur – Shayan Zadeh, America remains the world’s beacon of success – Tim Roemer

The problem of income inequality is not something new, but it is something that people must worry about because it is affecting not only our wallets, but our communities as a whole. I agree on the author’s point of view about income inequality in the United States his position is very similar to another Robert Reich documentary called “Inequality for all” where he mentions all the aspects that brought United States economic system to a hold just to help a fraction of all population one of those systems was education where before the nineteen eighties it was cheaper to go to college than nowadays or the fact that workers were pay almost the same as any other for their sacrifice . Going back to the video on debate he mentions how policies changed

Income Inequality Income Inequality or “wage gap” is a big topic for freedom fighters and liberals for the simple fact that it isn’t equal for everyone. Because the wage gap is so prominent it's one of the biggest “facts” that discrimination is still apart of everyday American society. The wage gap from these radical interest groups think the economy is get a dollar take a dollar instead of a free flow economy. This misguided idea of the economy is absolutely not true and isn’t at the fault of the Government, but the people.

According to governments researchers, if taxes are increased on the wealthy, income inequality is worsen, and not improved at all. The gap grows. Do you want to worsen income inequality? Do you want to be a part of china? Do you want to lose half your college

Lastly, Gilbert bring home a hard-hitting reason that this hype is unnecessary: "The U.S. middle class boasts among the highest disposable household incomes in the world. The average U.S. family has 38 percent more disposable household income than a family in Italy, 25 percent more than a family in France, and 20 percent more than a household in Germany, when adjusted for differences in purchasing power... With the average family’s disposable household income in the United States among the highest in the world, inequality is perceived less as a source of social friction between the “haves and the have-nots” than as an imbalance between those who have a lot and others who have even more". I would agree that this has become an issues between who has more than others rather than who has nothing and who has something. I definitely agree and have understood as Gilbert explains, poverty and inequality are two different things.

America, the land of opportunity, but is it really? America is the wealthiest country in the world, but the middle class is contracting due to increasing cost of living and stagnant wages. Inequality for All, narrated by Robert Reich, is a documentary about the skewed distribution of income between the top one percent and the average worker in the United States. This documentary explains what is causing this issue, why this is occurring, and how to fix this issue. Inequality for All, shares many issues that cause the wage gap to increase so drastically.

Wealth and Inequality in America Inequality The inequality in America has increased over time; the gap between the rich and the poor has become a problem that many Americans don’t see. Inequality is the extent of income which is distributed unequally among the citizenry. The inequality of the United has a large gap between the poor and the rich making it unfair to the population, the rich are becoming wealthier and the poor remain poor. The article “Of the 1%, By the 1%, For the 1%”, authored by Joseph E. Stiglitz describes that there is a 1 percent amount of American’s who are consuming about a quarter of the United States income in a year.

America prides itself on being one of the most effective democratically governed counties. The idea of the American dream is that all people have equivalent political freedoms and a responsive government. However the effectiveness of social equality is being threatened by increasing inequality in the United States. Economic inequality in the US has expanded drastically. The wealth gap has had drastic changes over the past 35 years.

However, in the long run, many employers will not be able to maintain to stay in business due to the significantly high wages. An increase in minimum wage would cause millions to lose their jobs and put them further in poverty. It would even make it harder for them to obtain jobs after the increase due to the increase of competition in the job market, and most importantly an increase in minimum wage would cause increase in the price level and it will reduce significantly consumption due to the lack of purchasing power that is cause by the higher inflation rate. The minimum wage should not increase because it is unsustainable economically. Another approach of help guide people out of poverty can be a push for an increase in education and knowledge capital instead of continuously increasing the minimum

First, the cause of Income Inequality is Global trend changed. Over the past forty years, the costs of transportation has reduced by because of improvement of technology, automation, and communication dramatically. New markets have opened, bringing growth opportunities in countries rich and poor alike, and hundreds of millions of people have been categories out from poverty. However, inequality has also risen. So, this has showed that the globalization has play a very important role in affecting the income inequality in this global.