Inequality In America

Does Income and inequality in America exists, and if it does, how does it affect millions of people in the United States starting from those that are scraping by and to those who are at the top echelon of wealth. Why does Income and Inequality brings political arguments to rise, and create this animosity of the haves versus the haves not and is the wealth distribution fair overall. Income and inequality in America is factual and it should be desperately fixed to improve the betterment of millions of Americans that are not
What is Income and Inequality, is the wealth gap between the super-rich and everyone else? The wealth distribution and is not just about stagnate wages but also the transfer of the wealth and public policy. Many Individuals

in America have a part time job that pay as low as $7.25 which isn’t bad compared to the rest of the world but just looking at the United States in a micro perspective, the wage and salary in the U.S. should be much higher in the year of 2016, then it is. Federal minimum wage in the 1960s rose up significantly, high as $8.54 adjusted for inflation. Yet, the federal minimum wage is still stagnate at 7.25 since 2009, when it was first increased. In the contrary many rich individuals that work for wall street or are either CEOs of large cap companies, medium cap companies or even some cases small caps are deliberating see their compensation pack rise up through the roof, many CEOs are seeing bonuses that are in somewhere in the double digits of millions. “Income inequality is a danger to the world as we know it. That’s not the sentiment of only grumbling left-leaning ideologues. Captains of industry —Dominic Barton, global managing director of McKinsey & Co.; billionaire investor Nick Hanauer; and real estate investor Jeff Greene, for example — warn of the dangers that could face American capitalism. Seventy-seven percent of millionaires see it as a top economic concern.
But aside from all the talk, going on for years now, little has happened. That should be no surprise. As Paul Theroux pointed out in the New York Times, most of the discussion has been just that: words. The problem is that the income by financial distribution from those who had far less. Jobs were sent overseas to reduce costs, a move that helped keep real income flat, or worse, for most of the country.
If you look at the shares of aggregate income by each fifth economic fifth, as well as by the top 5 percent, has shifted dramatically from 1967 to 2014.

In that early year of the range, the lowest fifth held 4 percent, a number that would drop to 3.1 percent. The second lowest fifth went from 10.8 percent to 8.2 percent. Middle fifth: 17.3 percent in 1967 to 14.3 percent in 2014. The second highest and highest fifths went, respectively, from 24.2 percent and 43.6 percent to 23.2 percent and 51.2 percent. And the top 5 percent, which had 17.2 percent, now has 21.9 percent.
Money has been regularly and inexorably shifted from the bottom roughly 80 percent of the country to the top 20 percent, and mostly the very top 5 percent. Still, talk of income inequality, even if honestly actually meant, falls short. That is because the attention is too often on expecting to improve things in the short run by having CEOs make less and workers, more. But even with elevated salaries, there are typically so many workers to the one CEO — or even a handful of Top Corporation officers— that redistributed money would not amount to that much per person.” - Eric

Sherman
This is one piece of many cases how the wealth distribution transfers to different socioeconomics. “Income inequality is softened somewhat by government transfer payments, like need-based welfare programs and Social Security. But since 1979, according to the Congressional Budget Office, these payments are increasingly not going to people who are actually poor. It writes: The size of transfer payments … rose by a small amount between 1979 and 2007. The distribution of transfers shifted, however, moving away from households in the lower part of the income scale. In 1979, households in the bottom quintile received more than 50 percent of transfer payments. In 2007, similar households received about 35 percent of transfers. That shift reflects the growth in spending for programs focused on the elderly population (such as Social Security and Medicare), in which benefits are not limited to low-income households. As a result, government transfers reduced the dispersion of household income by less in 2007 than in 1979.”- Matthews, Chris. In addition, I think the rich has lobby their way in Washington to have the system to be rigged in their favors, many wealthy individuals like Warren Buffett a democrat and Bill Gates a republican have made statements how the wealth disparity is unfair and some of their super rich peers like the Koch brothers (who are billionaires) like Buffett and Gates disagree that the wealth gap in America is in for disaster. Many of the Koch brothers, wealth comes from oil money, and disagree with any climate changes and will use their wealth to discredit any such claims, that there is climate change. In America the two main primary political parties Republicans and Democrats have people on both sides, which believe the wealth distribution in America is largely terrible and agree that there should be change to level the level of playing field.
Income and Inequality should be fixed, not because they should be but because it’s ethically correct to do so. Nowadays men have to work alongside with their significant others, before the 1960s or little after many men were able to work to take care of the whole family, with only one source of income. Now in today’s world it is the opposite, women are pushed to work because of the high cost of living and stagnate wages and many who are not sophisticated or don’t hold a high net worth are unable to. The government permits hedge-fund managers to invest for those who net worth are below a million dollar, why is this policy in place, the government stated that they want to protect the low cap or unsophisticated investors from uncertainty that inevitably occurs in the financial markets, with that being said, low cap investors are not able to receive high growth on their invested capital like some of their fellow rich Americans who hold a high net worth. They are told to invest their hard earned money into Mutual funds, 401k, pension fund, IRA which are all a great vehicle to allocate ones capital, but don’t they get the high returns on invested capital like many investors in the hedge fund industry, it’s because hedge fund are less regulated compared to mutual funds, where’s there more regulations on what the mutual fund manager can do, so the system is rigged against everyone else who don’t have a net worth of a million dollars, in terms of opportunities of building wealth.
Why Wall Street is more important now than ever before and why it helps create income and inequality, and what is the definition of income and inequality.

Income and inequality, is tied up with Wall Street. Why in America the best students are flooding into business school and to get the best jobs in the financial industry, A. Because they want to grow with America, B. because that’s where the money is, and I think that’s the right way to go, I think people should try to understand about how the financial market works, America can educate their citizens much more by providing a required course about the financial markets in high school up to college and could also have a tv station specifically to help teach Amercains about how to invest theier capital (money) how to avoid costly mistakes like opening up too many credit cards or how to pay off debts like student loans debt. Many, of my friends are not majoring in finance for undergraduates I do not plan to major in business, despite my background knowledge in it. I think it’s critical for Americans to learn about investing and saving adequately and help them to grow into prosperity. America economic system was in the side of capitalism so the history of people going where the money is and it can be traced back to America early days, but the problem here is America has become too dependent on Wall Street, whereas when the market does well the economy does well, when wall street does poorly the economy does poorly, and it

recreates some glimpse of the great depression in 1929 and 2008 and by no means it’s limited to only those dates where America had a bad period in wall street. However, during those two time Wall Street was deregulated at its lowest compared in historical data. Colin Gordon who is an author of Growing Apart shows a data of where inequality stands when public policy are enforced compare to when it’s not. Graph one, page one. http://scalar.usc.edu/works/growing-apart-a-political-history-of-american-inequality/index
Moreover, wall street investors are hit with 15% tax rate like a Warren Buffet unlike many Americans who is not rich as Warren Buffett are paying around 30 to 35% of tax rate, because warren invest his money in stocks and he holds investment for long period of time about 5-7 years on average uncle Sam is more lenient with the tax, and despite all of that billionaire Buffett is eligible for social security benefits and is receiving them. This explains how rigged and disfranchised the American political system is and why it should be fixed, to bring back the American dream, I don’t think the American dream is dead but it is diminishing quickly. And American politicians should step in because income and inequality, is growing rapidly, and people who are not associated with the one percent who control most of the wealth in America, are losing hopes for opportunity for riches and abundance life, income should be increased for those who are not at the one percent to close the gap between the super-rich and everyone else or can possibly leave to a political revolution in the distant future
Income and inequality, in America destroys lives and dreams in America for those who are not giving the opportunity to have a chance to have an adequate income to live off, when cost of living is rising and income is not where it should be. Especially for those who don’t have a college education which the opportunity of receiving a high paying career diminish. Despite going to college you may perhaps be holding thousands of dollars in student loans debt and without an adequate income stream students won’t be able to pay their student loans debt, credit card debt, and high tax bracket compared to wall street investors, Income and inequality, is a gap between the super-rich and everyone else and if everyone else income is not growing at the same rate as the super-rich then many problems can occur and the American people should stand up about this issue and why it’s a threat to the united states and should find solutions for the problem of income and inequality.