Solutions to Wealth Inequality in the United States In the United States where a vast majority of the country’s wealth is held by the top 1%, growing wealth inequality poses problems for economic and social mobility. Higher education itself is one of the key tools that the poorer population can utilize to ascend to the middle class; however, rising college tuition costs limit the use of this tool. Political corruption also has the ability to staunch progress of narrowing the wealth gap as politicians are bought and rewarded by the wealthy, resulting in a plutocracy with little representation for the poor. Along with politics, the United States’ loop-hole filled progressive tax system is barely progressive since capital gains are not taxed …show more content…
As technology continues to advance, a college degree becomes more and more crucial to attain wealth; however, attaining a diploma has never been more expensive which is why educational reform is a key component in decreasing wealth inequality. Those lacking a higher education are at an immediate disadvantage since “in 2012, 65% of all jobs required a post-secondary education, completely reversed from the only 34% that did in 1975” (Bunce). Affordable college education is crucial in narrowing the wealth gap since the incline in the percentage of jobs which require higher education has been accompanied by a steep incline in the price of education itself. Where education is the problem, it can also be a solution if the federal government would simply provide the resources to achieve cheaper college tuition; moreover, the money to fund such a program would be made back through the economic gain accompanied with the narrowing of the wealth gap. Education is primarily such a considerable factor of wealth inequality because education runs …show more content…
Wealth concentration directly leads to the creation of a plutocracy which must be reformed in order to avoid political corruption and increase representation for the poor. While the United States’ progressive democratic structure is a major advance over older political systems, there is still much to be done to achieve true political democracy. Robert Dahl insists that such a democracy is merely “polyarchic,” since “where it fails most importantly to be democratic is in the fact that as great an accomplishment as it is in facilitating the participation of citizens in their own government, money still rules it” (Schutz 117). Personal wealth is a major factor of citizens’ input into the democratic process since money’s influence in politics is heavily tied to what acts are being passed through congress which might solely benefit the wealthy. Those with wealth are able to protect themselves and their wealth by financially backing political campaigns or even by attaining political positions themselves which in turn gives them the capability to remain powerful. The economics of wealth proves how “having wealth broadly defined (more precisely, financial, human, social and cultural capital) enables one not only to take a position of political power but also to avoid being subject to it since one has the resources to counter, or to avoid or “escape” it, in various ways”
3. What are the effects of this wealth inequality in the US and what causes it, as well as some possible solutions and their ramifications, will all be discussed and answered below. There has always been a wealth gap between the richest and poorest in society. However, in the past decade, the wealth gap between the richest and poorest citizens in the US has been growing rapidly. In the 70s and 80s, the wealth and income growth rate for both poor and rich people were similar, however, between the years 2009 and 2012 the top 1% income increased 31% while for the bottom 20%, their income actually dropped and for the vast majority of Americans, the average yearly income only increased by 0.4% [4].
David J Lynch says that, “ [s]ocieties that manage a narrower gap between rich and poor enjoy longer economic expansions”, however, in the United States the gap between the have and have-nots has widened (source C). “This country is just getting worse and worse and worse … and that is not a recipe for stable growth” (source C). If we do not do something soon our capitalist country will fall. In order for the income inequality gap to lessen to create a more stable economy the government must invest in education and unionize workers and not provide higher taxation for the top one percent.
The film “Inequality for all” directed by Jacob Kornbluth, begins with Robert Reich asking students three questions to consider in a lecture when talking about the uneven distribution of wealth. First, what is happening regarding the distribution of wealth? He then inquires to why this is happening. Last of all, he asks the students if the distribution of wealth is a problem in America. He addresses these questions as well as many others in his lecture on the growing divide between America’s rich and poor. Robert Reich is an economist, author, and educator as well as public policy professor who served in the Ford, Carter and Clinton administration. He has dealt with this particular topic for over three decades and continues to spread his political views as a professor at the University of Berkley. Furthermore, he talks about the widening gap between the wealthy and the poor/middle class. He goes beyond the obvious facts to show us why this is happening and uses statistical data to display this growing problem. He gives concerning evidence that wages are declining, and that America’s weakening economy is based on consumerism.
By using the points listed previously, it is evident that a small portion of the population control what policies are implement in America and hold most of the nation’s wealth. I believe this two factors, the wealth one possesses and the amount of control an individual has, are interconnected. America has become a nation where money can get you anyway because it significantly increases the amount of opportunities available to the individual. Many people can attest to the presence of this class, including individuals from Kansas City who participated in a cross-section study with detailed interviews. The citizens of Kansas City referred to these people as “big rich” or “blue bloods” (pg
With each class comes a certain level in financial standing, the lower class having the lowest income and the upper class having the highest income. According to Mantsios’ “Class in America” the wealthiest one percent of the American population hold thirty-four percent of the total national wealth and while this is going on nearly thirty-seven million Americans across the nation live in unrelenting poverty (Mantsios 284-6). There is a clear difference in the way that these two groups of people live, one is extreme poverty and the other extremely
A high school education is no longer sufficient to succeed in America’s increasingly complex economy. However, because of the high price point of a college education, far too many Americans are unable to afford education beyond high school. As shown in the graph below, the higher level of education received greatly increases the chances for employment and also dramatically increases the average salary potential of an individual.
ISBN 0-7679-0533-4. Wealth and Democracy clearly illustrates and emphasizes the importance of Democracy being endangered. The author, Kevin Phillips, America’s leading political analyst since 1968 and a graduate of Harvard Law School, appears very informed and credible. Wealth and Democracy outlines and explains the politics of the second half of the 20th century. In this book, Phillips primarily explores how the rich and politically powerful often work together to create and continue to take advantage at the expense of the national interest, the middle class, and the lower class. The book contains several interesting chapters on history and an analysis of present-day America that reveals the dangerous politics that go with the concentration of wealth.
Wealth inequality and income inequality are often mistaken as the same thing. Income inequality is the difference of yearly salary throughout the population.1 Wealth inequality is the difference of all assets within a population.2 The United States has a high degree of wealth distribution between rich and poor than any other majorly developed nation.3
Wealth inequality is a real issue that needs to be fixed. The imbalanced growth of the upper class compared to the middle class is a danger to American society as a whole. The rich becoming richer while the middle class remains the same leads to a power imbalance, with the rich using their money to run the country the way they see fit while the middle class speaks to ears that do not listen. The issue of wealth inequality needs to be fixed by raising taxes on the rich.
"Growing Income Inequality and the Education Gap." Economist's View. N.p., 8 May 2006. Web. 12 Dec. 2013.
Divisions within the social stratum is a characteristic of societies in various cultures and has been present throughout history. During the middle ages, the medieval feudal system prevailed, characterized by kings and queens reigning over the peasantry. Similarly, in today’s society, corporate feudalism, otherwise known as Capitalism, consists of wealthy elites dominating over the working poor. Class divisions became most evident during America’s Gilded Age and Progressive era, a period in time in which the rich became richer via exploitation of the fruits of labor that the poor persistently toiled to earn. As a result, many Americans grew compelled to ask the question on everyone’s mind: what do the rich owe the poor? According to wealthy
A college education has become the expectation for most youth in the United States. Children need a college education to succeed in the global economy. Unfortunately for the majority of Americans the price of an education has become the equivalent to a small house. The steep tuition of a college education has made it an intimidating financial hurdle for middle class families. In 1986-1987 school year the average tuition at a private university was $20,566 (adjusted to 2011 dollars) while in 2011 the average cost was $28,500 for an increase of 38.6%. Similarly in public universities there has been an increase in tuition: in the 1986-1987 school year the average tuition at a public university was $8,454 (adjusted to 2011 dollars) while in 2011 the average cost was actually $20,770 for an increase of 145.7%. Most families who are able to save for college try to do so, therefore their children are not left with large amounts of debt due to loans. Nevertheless, families are only able to save on average around $10,000, which is not enough to pay for a full educ...
The connection between wealth inequality, education inequality, and income inequality is basically set up as an analogy. College+Income=Wealth. That “equation is saying that you go to college have a job while your in college, and then that will all equal wealth/ more money that you would be making rather than just going to a high school.
Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality.
She postulates how the rich are just better equipped to utlize their wealth to buy political favors, and how they gained “a disproportionate amount of influence” (213). Mayer exposes the fraudulent notion that “every man is equal” in America and instead, replaces this idea with the fact that “it’s not one man one vote anymore. It’s all about the money” (213). According to Mayer, to have a voice, or multiple voices in influencing the decisions and policies of our country, one must have a lot of money. It’s an unfortunate reality that this problem of unequal representation has become the norm in our current political environment. Money and wealth have stripped our American democracy of the very virtue and humanity it was formed to protect, and instead, have provided excessive advantages to the wealthy. A case study performed by two university professors indicate “economic elites and organized groups representing business interests have substantial independent impacts on US government policy, while average citizens and mass-based interest groups have little or no independent influence” (Villadsen). Money has thus become the de-facto standard required to gain the eyes and ears of a politician, and as we all know, only the wealthy have access to that kind of fund. One man no longer equals one vote. Instead, one man with a lot of wealth can somehow