Joseph Stiiglitz Wealth Equality

In his essay “Of the 1%, by the 1%, for the 1%”, Joseph Stiglitz, an American economist who won the 2001 Nobel Prize in economics, speaks about a problem that has been developing in America for years: the inequality gap of wealth. Stiglitz’s essay essentially goes into detail about how the problem of financial inequality is being neglected by the groups that the problem has the greatest impact on, the lower class and the middle class. Stiglitz also provides statistics to illustrate how the wealth distribution has changed from 25 years ago to modern day. Moreover Stiglitz mentions that the wealth gap alienating American society, and how the concentration of wealth is directed causes worse conditions to arise in the lower and middle classes.

Furthermore, Stiglitz mentions the rebellions Middle-Eastern countries fighting against the inequality of wealth. Stiglitz wrote his piece to enlighten the 99% that America’s distributional inequality of wealth can only be resolved by the 99% taking action.
In his essay, Stiglitz mentions that the upper class possesses firm jurisdiction over the circulation of wealth. As this prevents the wealthy from having to compensate taxes, “Lowering tax rates on capital gains, which is how the rich receive a large portion of their income.” despite the fact that they easily could (Stiglitz 748). Stiglitz does refer to how this affects society as he mentions “America has long suffered from an under-investment in infrastructure”, as the conditions of highways, bridges, and other forms of common travel have become perilously unstable (Stiglitz 748). Furthermore, he also brings up under-investment in “basic research, and in education at all levels”, to which Stiglitz states are because that the wealthy become “reluctant” to spend more money on welfare and “common needs” (Stiglitz 748). This addresses how the wealthy scarcely invest their money into providing for the common good, as they can purchase all these basic services for themselves. Stiglitz also attempts to convey that the lower and middle classes do not have the funds to contribute much. He further supports the taxation issue when he delves into the subject that, “A tax bill cannot emerge from Congress unless big tax cuts are put in place for the wealthy.” (Stiglitz 750). Although Stiglitz does illustrate the ideas of the wealthy not contributing to the common welfare, he also explains about the alienation of society that the inequality constructs.
One of the purposes of his piece that Stiglitz put heavy attention on is how the wealth gap adds cultural and social diversity in America.

Stiglitz makes a bold statement saying, “America’s inequality distorts our society in every conceivable way.” (Stiglitz 750) this corresponds with the idea that the gap in wealth alienates society. In addition to supporting the previous point about taxes and the common welfare, with the diversity being forged the wealthy have a more difficult time empathizing with the groups of people that wealthier folks started out as. The wealthy experience “the erosion of our sense of identity” (Stiglitz 751), which in turn induces them to care less about the conditions of the labor workers. The actions rich folks undergo afterward, “undermines what used to be viewed as the ‘core’ labor rights,” (Stiglitz 751), the actions typically include spending less money on health, environmental, and safety conditions in their businesses. Historically, actions such as these have been opposed by dint of protest; this goes with the purpose of having the lower and middle classes take action against the inequality of wealth in America. Furthermore Stiglitz also points out how the actions of the wealthy have caused

rebellion.
Stiglitz makes a point when he refers to how other nations have been fixing the dilemmas of the poor, and striving to close the gaps in income; whereas “America has allowed inequality to grow,” (Stiglitz 746). Moreover Stiglitz references the rebellions occurring in the Middle East, “Governments have been toppled in Egypt and Tunisia”, as well as “Protests have erupted in Libya, Yemen, and Bahrain.” (Stiglitz 752). This shows how the purpose of his work is to broadcast his belief that the only way to shut the wealth gap is by taking action. Stiglitz further implies this when he asks the question, “When will it come to America?” (Stiglitz 752). With the wealthy possessing a powerful influence over Congress and the Senate, the only ones who can take action are the public. Also he references history again, by bringing up how with the wealthy, “their fate is bound up with how the other 99% live.” And making the point that “this is something that the top 1 percent eventually do learn. Too Late.” (Stiglitz 752-753). Since the inequality continues to get worse, Stiglitz wrote his work to inform the general public that they must take action in order to restore financial equality, before it results in blood being shed.
As a final point for Stiglitz’s purpose of writing “Of the 1%, by the 1%, for the 1%”, to coincide with the idea of enlightening the lower and middle classes, Stiglitz states, “Some people look at income inequality and shrug their shoulders.” (Stiglitz 747). The majority of citizens are aware of the inequality, but in their point of view it is nothing for them to worry about. Meanwhile in reality, it is definitely a problem for them to show concern. As was previously stated, Stiglitz wrote this piece for the lower and middle classes, “the 99%”, to show to them that financial inequality can be resolved if the public take action against the power of the wealthy.