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Current economic inequality in the united states essay
The present condition of the American economy
Current economic inequality in the united states essay
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America was once known as the land of opportunity. However, that is no longer the case. Americans are still suffering from a depression that began three years ago in 2008. According to the Bureau of Labor Statistics, in 2007, the United States unemployment rates were 4.6 percent. In 2009, one year after the depression began, the unemployment rate rose to 7.6 percent. Millions of Americans are living in poverty, unable to afford the basic necessities. On the other hand, there is a minuscule percent of the population that are billionaires. Written in 2005, Holly Sklar’s essay “The Growing Gulf Between the Rich and the Rest of Us” argues that if something isn’t done about the growing inequality between the rich and the poor, the American economy as a whole will weaken. A year later, the Economist published the article, “Inequality and the American Dream” implies that the American dream is broken. Sklar’s argument sheds light on the Economist’s argument. In particular, Sklar’s use of facts regarding the wealthiest Americans, the poorest Americans, and the discussion of the impact of inequality on society provide insight into the Economist’s article.
Sklar provides vivid illustrations of the astronomical wealth of America’s richest class. Sklar opens her article with the following fact from the CIA World Factbook, “‘Since 1975, practically all the gains in household income have gone to the top 20 percent of households’” (308). This is a disturbing fact especially for a country that prides itself on equality. A truly equal society would reflect nationwide prosperity throughout all levels. Next, Sklar writes about the Forbes 400, the wealthiest people in America. Sklar states that the minimum net worth to get on the list is $...
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... Americans to slip under the poverty lines.
Both Sklar and the Economist offer suggestions to improve the inequality in America, but unfortunately the inequality continues to grow. Sklar’s use of detailed facts about the richest Americans, the poorest Americans and her discussion of the impact on society add clarity to the Economist’s argument that the American dream is broken due to the inequality in America. Until the American government starts to make changes, the problem of inequality will continue to grow.
Works Cited
The Economist. “Inequality and the American Dream”. They Say I Say. Gerald Graff, Cathy Birkenstein, Russel Durst. New York: W.W. Norton & Company, 2009. Print.
Sklar, Holly. “The Growing Gulf Between the Rich and the Rest of Us”. They Say I Say. Gerald Graff, Cathy Birkenstein, Russel Durst. New York: W. W. Norton & Company, 2009. Print.
In Confronting Inequality, Paul Krugman discusses the cost of inequality and possible solutions. Krugman argues to say that it is a fantasy to believe the rich live just like the middle class. Then, he goes into detail about how middle class families struggle to try to give their children a better life and how education plays a factor in children’s future lives. For example, children’s ability to move into higher education could be affected by their parents economic status. Also, He discusses how politicians play a role in the inequality, because most of politicians are in the upper economic class. Finally, Krugman says how we could possibly have solutions to these various inequalities, but how America won’t get
According to Gregory Mantsios many American people believed that the classes in the United States were irrelevant, that we equally reside(ed) in a middle class nation, that we were all getting richer, and that everyone has an opportunity to succeed in life. But what many believed, was far from the truth. In reality the middle class of the United States receives a very small amount of the nation's wealth, and sixty percent of America's population receives less than 6 percent of the nation's wealth, while the top 1 percent of the American population receives 34 percent of the total national wealth. In the article Class in America ( 2009), written by Gregory Mantsios informs us that there are some huge differences that exist between the classes of America, especially the wealthy and the poor. After
This article was stimulating to me because it related with me on a personal level. I have been discriminated upon many times in my life and this article excellently explained how white privilege plays a role in determining which groups are in the high or low end of the hierarchy spectrum. In Sklar’s article, Imagine a Country, she explains the growing income inequality between individuals by using several statistics that show the rising wealth gap between the lower, middle, and upper class. Throughout her article, Sklar addresses the controversial topic of high government spending by pointing out that there is an unequal amount of resources that are distributed between large programs such as defense and social programs that help reduce poverty. Her critics have stated that because she is presenting statistical facts as it pertains to income inequality, that she is therefore obligated to include proposals that will address and solve this dilemma. The purpose of this article, contrary to what her critics have criticized her for, is not to present a solution to this
“The American Dream: Out of Reach?” America Press 10/3/2011: Pages. Vol. 205 Issue 9, p6-6. 8/9
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. .
In a country where 45 million people struggle to survive below the poverty line, inflation continues to rise as wages remain the same. What happened to the American Dream? As the rich continue to get richer, even those in the middle class can’t seem to catch a break. The structure of American society makes it nearly impossible for those in poverty to rise above, and there are other factors, including race and gender, which play a role.
People who work hard enough become successful and build a good life for themselves and their family. Millions of Americans and others who admire America have believed this for generations. However, is this still true? Brandon King debates his interpretation of the American Dream in his published work, “The American Dream: Dead, Alive, or on Hold?” During his essay, the speaker highlights how important the American Dream is to the economy and providing a distance from inequality. The speaker emphasizes his belief that the American Dream is still alive within America and that people must work hard to achieve it. When discussing the American Dream, King will agree that the idea is alive and thriving in the minds of Americans; yet, I argue that the idea is on hold within American society due to lack of upward social independence and economic mobility.
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
The article of the 1%, by the 1%, for the 1% is written by the famous American economist Joseph E. Stiglitz, who won the Noble prize in economics, tells us about the growing inequalities between the upper class people and the middle class people. The main purpose of this article was to focus on rising inequality in economy of the United States of America. The article gives us insight about the change in economy in past and present. Joseph starts by giving numbers to mention the difference. 25 years ago richest American had 33% of nation’s wealth and took 12% of its yearly income, today its 40 % and 25% of yearly income (746). Although he did not mention the source, his numbers appear to be true due to his credentials as
One would expect that social equality would just be the norm in society today. Unfortunately, that is not the case. Three similar stories of how inequality and the hard reality of how America’s society and workforce is ran shows a bigger picture of the problems American’s have trying to make an honest living in today’s world. When someone thinks about the American dream, is this the way they pictured it? Is this what was envisioned for American’s when thinking about what the future held? The three authors in these articles don’t believe so, and they are pretty sure American’s didn’t either. Bob Herbert in his article “Hiding from Reality” probably makes the most honest and correct statement, “We’re in denial about the extent of the rot in the system, and the effort that would be required to turn things around” (564).
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].
America is in a Great Recession, and the American Dream seems to be dying (if not already dead) for many Americans. I don’t think that the American Dream is dead; it just needs rehabilitation due to the injuries it sustained at 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. 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.
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...
The “American Dream” consists of all U.S citizens having the opportunity to obtain success and prosperity through hard work and determination, but, in a capitalistic economy such as the United States the “American Dream” is merely impossible. Low wages are masked as starting points, taught to eventually pay off in the form of small raises or promotions. Competition to obtain unequally shared resources, is used to define an individual’s extent of initiative. In reality, these are all concepts used by the wealthy to deter the poor working class from obtaining upward mobility. Middle class America, the key factor in helping the wealthy stay wealthy, have adapted to these beliefs and concepts, created to keep them far behind. Conflict theorist
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.