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Essay on income inequality solutions
Problems of income inequality
Essay on income inequality solutions
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Income inequality has been a big factor for many years; Americans hold the wealthy, mostly responsible because of their irresponsible obligations of the economy, stimulated to some degree by rising inequality. Taxing the wealthy does not seem to be the most undeviating resolution to these problems, however putting the economy back on track through justifiable growth does. Americans support guideline laws, job development, fair pay, and education opportunities. Mostly Americans care about opportunities, previously stated, and not income inequality, which was the wrong route to go down. Inequality can itself twist incentives and limit opportunities. This income inequality eventually leads to recessions and depressions. The non-awareness of Americans for income inequality is from chasing opportunities that are not there instead of standardizing the income …show more content…
My grandfather on my mother’s side came from Ireland, as we all know Ireland had potato famine. My grandfather came from the poorest to a well-distinguished man. My grandfather became a police officer for the town of Swansea, also was an angler. He came from nothing to something, marrying my grandmother who was Portuguese decent but her family had wealth. They bought a house in Bristol and had my mother and uncle. I do not know too much about my dad’s side but they came from France and not that wealthy, both grandparent generations trended an upward horizontal mobility. The next generation my parents both stayed around neutral, they were together bought a house and both has good paying jobs, they started a lot better than their parents did, it did take a dip after my father passed away but the social mobility stood as a vertical mobility. Now my generation, I am the first in my family to go to college while working full time. You could assume that after college, I would trend as an upward horizontal mobility, but my story is still being
Our economy does not serve the purpose that it was designed to do which is to provide decent wages to the hard workers and keep prices lower than the wages. I believe that Americans are kept in the dark about the income inequality so that the rich can keep getting richer while the working class remains at the bottom struggling to make ends meet at every paycheck.
The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.
Income inequality not only harms us fiscally, but also affects our mental and physical wellbeing; therefore, it is important to identify the right ways to control wealth distribution among people.
Income inequality in the United States, as of 2007, has reached levels not seen since 1928. In 1928, the top one percent received nearly 24% of all income within the United States (Volscho & Kelly, 2012). This percentage fell to nearly nine percent in 1975, but has risen to 23.5% as of 2007 (Volscho & Kelly, 2012). Meanwhile, in 2007 (see
According to Henslin social, mobility is the movement of individuals, families and groups from one social position to another (Henslin, 2015, p 237-239). It can be viewed in terms of distribution of resources and power among the different social stratification and its effect on the people involved. Stratification is a ranking system for groups of people that continue unequal rewards and life chances in society. Through stratification, society categorizes people and distributes valued resources based upon these categories (Henslin, 2015,p190). The social status of a person is determined by his or her work how much money they have earned and how they move their way up the social class. Social mobility occurs whenever people move across social class boundaries, from one level to another. Mobility can be up or down on the social class ladder but the American Dream is only upward mobility on the social class ladder. The people in the United States are broken down into classes the rich people on top the poor people in the bottom and the middle class in the
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].
Recently, studies have shown that income inequality has many connections that have caused the gap in the United States. According to the research I found, income inequality is connected to corruption, trade, wages of workers, and education. The world income inequality had declined since the twentieth century according to the studies found (Clark). Corruption falls increasing on low income individuals more than higher income individuals. Additionally, the trade theory suggests that the free trade might have level up the income inequality higher within countries by the different patterns of wages and demand for workers who are skilled and unskilled (Silva and Leichenko). Moreover, the education of wealthier people has it easier because the learning efforts of education are unbalanced. Besides, income inequality in the United States is hurting our economy due to the all the issues of corruption, trade, wages, and education. Suggested by Robert H. Frank article called “Income Inequality: Too Big to Ignore,” the income inequality is bad for our economy (Frank).
America is in a Great Recession, and the American Dream seems to be dying (if not already dead) to many Americans. I don’t think that the American Dream is dead; it just needs rehabilitation due to the injuries it sustained from the hands of an unregulated government. Though we are in a Great Recession, every American can progress their lives for the betterment of themselves and future generations. According to Brandon King (2011) in The American Dream: Dead, Alive, or on Hold?: “…the most worrisome problem is inequality: that wealth is concentrated into the hands of a rich minority.” Because of this, many Americans and politicians are arguing about either “raising the taxes on the rich” or “supporting the richest sectors in America” (Thomas, 2011) to stimulate the economy. In the articles I have read in They Say, I Say: The Moves That Matter in Academic Writing, both Cal Thomas and Brandon King seem to believe that the government should not tax the rich minority more than the poor majority. I disagree with both Cal and Brandon and believe that the rich should be taxed more than the poor. However, the income from the taxes should be put to use for the betterment of the poor majority of America.
Inequality exist and is high in America because the amount of income and wealth that is distributed through power. In America the income distribution is very inequality and the value of a person wealth is based on their income with their debts subtracted. “As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers)” (Domhoff, 2011). In contrary the poor do not get ahead and the rich get more. Americans are judged and placed in class categories through their home ownership which translates to wealth. Americans social class is often associated with their assets and wealth. “People seek to own property, to have high incomes, to have interesting and safe jobs, to enjoy the finest in travel and leisure, and to live long and healthy lives” (Domhoff, 2011). Power indicates how these “values” are not distributed equally in American society. Huge gains for the rich include cuts in capital gains and dividends and when tax rates decrease for the tiny percent of Americans income is redistributed. Taxes directly affect the wealth and income of Americans every year.
The inequality issues of America are becoming severe. Not all men are created equal. The belief that everyone can reach the American Dream with the right attitude is not rational. The wages in America are not as high as they are portrayed. Some people’s beliefs and life choices can affect their place in society. The level you are at in the economy has everything to do with where you fall in the social pyramid.
Ever since agriculture replaced hunting and gathering, the division of labor led to the creation of social classes and the division of land and unequal distribution of food surplus allowing inequality to flourish. Unfortunately, this has not only remained, but inequality has exponentially grown, making the difference between each social class quite noticeable. This distressing factor makes American economy highly unstable, and there is little to be done in order to fix this grave issue. It is only a matter of time before America’s economy comes crashing down. American economic inequality has been around for a long time, and it has become a monumental issue.
Is Inequality in America really as bad as we perceive it? In America, we have many people discussing back and forth on the issue of inequality. Some people claim that inequality is a rapidly growing phenomenon, separating the rich from the poor. Though, other Americans claim that we’re progressing and departing away from inequality. However, the way in which we choose to perceive inequality is our choice, but we cannot ignore the fact that it exist. Inequality is an issue that has been constantly debated in the past, and will continue to be debated, so long as we do not put an end to it. Inequality is changing our country. The people who enjoy higher social statuses are spending their money with no limitations, whereas the people in the lower
Income inequality has affected American citizens ever since the American Dream came to 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. The United States has often experienced a rise in inequality as the rich become richer and the poor become poorer, increasing the unstable gap between the two classes. The income gap in America has been increasing steadily since the late 1970’s, and has now reached historic highs not seen since the 1920’s (Desilver). UC Berkeley economics professor, Emmanuel Saez conducted extensive research on past and present income inequality statistics and published them in his report “Striking it Richer.” Saez claims that changes in technology, tax policies, labor unions, corporate benefits, and social norms have caused income inequality. He stands to advocate a change in American economic policies that will help close this inequality gap and considers institutional and tax reforms that should be developed to counter it. Although Saez’s provides legitimate causes of income inequality, I highly disagree with the thought of making changes to end income inequality. In any diverse economic environment, income inequality will exist due to the rise of some economically successful people and the further development of factors that push people into poverty. I believe income inequality e...
Inequality today is one of the most significant problems that America faces. According to Inequality.org in 2015 Household income of the top 0.1% of the population gained $6,747,439 while bottom 90% of the population got $34,074 (Inequality.org). The gap between incomes only continues to grow every year, which requires a change in social and economic policies of the country. However, it should be remembered that economic indicators can tell about working conditions, living conditions, nutrition, education of representatives of various groups of the population, but they can not show a picture of the realizability and opportunities to be successful in life for different groups of the population. That is why at the end
Income inequality is a big problem in the United States because the top, wealthiest American saw huge increases in their incomes, which the rest had their incomes go down. Bottom people do not have the same amount of money and the opportunity to move up the social ladder as the rich people do. In order to reduce income inequality, the government needs to tax the rich people more, and give poor people more money and more social services - education, food subsidies, health care.