What is wealth inequality? “It is the difference between individuals or populations in the distribution of assets, wealth or income.” [1] In sociology, the term is social stratification and refers to “a system of structured social inequality” [2] where the inequality might be in power, resources, social standing/class or perceived worth. In the US, where a class system exist, (as opposed to caste or estate system) your place in the class system can be determined by your personal achievements. However, the economic and social class that an individual is born into is a big indicator of the class they will end up in as an adult. [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]. The question is, is wealth gap bad? Is a growing or extreme wealth gap unhealthy for the economy and social stability or is it a necessary part of it. Functionalism argues that inequality is important and necessary because it “motivates people to fill different position in society that are needed for the survival of the whole of society.” [8] The rewards, i.e. wealth, prestige, and power and the resulting wealth gap ar... ... middle of paper ... ...y." Bloomberg Business Week. Bloomberg, 16 Nov. 2011. Web. 17 Apr. 2014. Trello, Julia. "Income Inequality: Views & Solutions From Experts" Finances Online Income Inequality Views Solutions From Experts Comments. Finances Online, n.d. Web. 16 Apr. 2014. Bob, Friedman. "Wealth Inequality: Its Causes and Cures." CFED The Inclusive Economy Blog. CFED, 19 Mar. 2013. Web. 21 Apr. 2014. Rugaber, Chistropher S., and Josh Boak. "Excite News - Wealth Gap: A Guide to What It Is, Why It Matters." Excite News - Wealth Gap: A Guide to What It Is, Why It Matters. Associated Press, 27 Jan. 2011. Web. 20 Apr. 2014. Tankersley, Jim. "Economic Mobility Hasn’t Changed in a Half-century in America." Washington Post. The Washington Post, 23 Jan. 2014. Web. 20 Apr. 2014. "Wealth Inequality in the United States." Wikipedia. Wikimedia Foundation, 18 Apr. 2014. Web. 19 Apr. 2014.
Stone, Chad, Danilo Trisi, Arloc Sherman, and William Chen. "Center on Budget and Policy Priorities." A Guide to Statistics on Historical Trends in Income Inequality. Center on Budget and Policy Priorities, 6 Nov. 2013. Web. 03 Dec. 2013. .
Throughout the years, “ U.S income inequality has been increasing steadily since the 1970s and now has reached levels not seen since 1928” (Source A).
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
Web. The Web. The Web. 26 Mar. 2014. The 'Standard' of the 'Standard'. http://www.huffpost.com/us/entry/4210225/>.
The Web. The Web. 22 Apr. 2014. The 'Standard' of the 'Standard'. Rothlisberger, Miles.
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
The 'Standard' of the 'Standard'. Web. The Web. The Web. 20 Mar. 2012. The. Ode, Kim.
Wilhelm, Heather “The Great Income Inequality Sham” Real Clear Politics. May 2013. Web. 29 Apr 2014.
Scarborough, Joe. “Top 1% Took 95% of Gains Since 2009.” Tampa Bay Times. January 21, 2014. Web. March 11, 2014. In this article the authors shows how income inequality has been changing over the time. He also tries to emphasize how large this gap has become by comparing income and taxation of the top 1% with the rest of the nation.
Smith, Noah. “How to Fix America's Wealth Inequality: Teach Americans to Be Cheap.” The Atlantic. Atlantic Pub., 12 March 2013. Web. 06 April 2014. .
Web. The Web. The Web. 06 Mar. 2014. The 'Standard' of the 'Standard'. SOLOTAROFF, PAUL.
Income inequality has affected American citizens ever since the American Dream came into existence. The American Dream is centered around the concept of working hard and earning enough money to support a family, own a home, send children to college, and invest for retirement. Economic gains in income are one of the only possible ways to achieve enough wealth to fulfill the dream. Unfortunately, many people cannot achieve this dream due to low income. Income inequality refers to the uneven distribution of income and wealth between the social classes of American citizens.
Wealth inequality is the uneven distribution of resources in a given state or population, which can also be called the wealth gap. The sum of one’s total assets excluding the liabilities equates the person’s wealth also known as the net worth. Investments, residents, cash, real estates and everything owned by an individual are their assets.In reality, the United States is among the richest countries in the world, though a few people creating a major gap between the richest, the middle class and the poor control most of its wealth. For more than a quarter of a century, only the rich American families have shown an increase to their net worth.Thisis a worrying fact for the less fortunate in the country and calls for assessment (Baranoff, 2015).
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.
Stewart, Charles T., Jr. "Inequality of Wealth and Income in a Technologically Advanced Society." The Journal of Social, Political, and Economic Studies 27.4 (2002): 495-512. Print.