Wealth Inequality

1446 Words3 Pages
bulb-icon

Recommended: Income inequality in the us paper

Wealth Inequality In America Ryan Wallace Throughout American history, wealth inequality has taken many different forms, and has affected many people and groups in different ways. In the following analysis, two measures of 'wealth inequalities' will be used. First is a more traditional view, regarding the distribution of income and wealth among the upper to lower classes. The size of the gap has varied over time, widening and compressing throughout American history. While America has been thought of as a middle class nation, this is a fairly recent phenomena that began after World War II. In this context of today, this idea appears to be fading as wealth is becoming more concentrated towards the upper classes. Additionally, these effects of both the concentration and equalization of income distribution can differently affect groups of people. The second view is with respect to the income and wealth inequality between different racial groups. While all racial groups are subject to class structure and the given income inequality, an additional layer of inequality exists where discrimination or privilege exist. When these two types of inequalities, race and class, are compared against time and the economy, patterns emerge. In the following literature, a link between these two inequalities of class and race will be explored. Furthermore, the analysis will focus on how changing wealth inequality between classes affects the additional inequalities that discrimination and prejudice create. An attempt to explain the relationship of changing wealth inequality over time, with respect to class and race. The basis for this concept, begins with the causes of prejudice. While there are many causes that relate to prejudice, the context ... ... middle of paper ... ... be said about the overall effects of wealth inequality? As supported previously, income inequality among different racial groups will be more intense than if it were solely based on the changes in class income inequality. This is because minority groups are affected by racial inequality in addition to the affects of class. The results are shown through the processes involved in the Great Compression, the reduction in inequality, and its counterpart the Great Divergence, where equality increases. The link between wealth inequalities among race and class has been explored, through the logic that prejudice can be influenced by relative depravation from the current economic climate. Over a process involving almost 80 years of American economic history, the cycle of income inequalities have been reviewed and examined, showing patterns of compression and divergence.

Show More
Related

  • Alex de Tocqueville's Teachings on Inequality and Poverty in the United States

    2380 Words  | 5 Pages

    French social philosopher, Alex de Tocqueville (1805-1889), once said, “However energetically society in general may strive to make all citizens equal and alike, the personal pride of each individual will always make him try to escape from the common level, and he will form some inequality somewhere to his own profit.” Through the ages, income inequality has caused class conflict, created political systems (communism), and has simultaneously promoted vast increases in wealth and technological advances. The purpose of this paper is to research and examine the benefits and detriments, or pros and cons, of income inequality and to then render my opinion regarding my findings. Because income inequality is vast in nature, this paper will serve to focus on only some of the important aspects of income inequality that fall under the category of “pros,” which include education, competition, and how income inequality stimulates productivity. In addition to focusing on some of the pro aspects of income inequality, this paper will also serve to outline some of the important aspects the “cons” which include concentration of wealth, social consequences, and job flight.

    Read More

  • Imagine A Country Summary

    688 Words  | 2 Pages

    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

    Read More

  • Wealth Inequality In America

    2137 Words  | 5 Pages

    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

    Read More

  • Income Inequality in the United States

    795 Words  | 2 Pages

    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.

    Read More

  • Money And Social Inequality In Sicario And Steve Jobs

    853 Words  | 2 Pages

    Though money may not be the root of all evil, it certainly contributes to inequalities between those on opposite ends of the wealth distribution map. Upward mobility becomes difficult for those whose income does not match that of the wealthy because of the lack of opportunities provided to the people who are in the working class (Marx). Unfortunately, this repetitive cycle of wealth inequality draws parallels with the racial inequalities that are seen today. Statistically, people of color and women collect less revenue than white men, who are less restricted in their mobility, in America (Rowe). According to Karl Marx, money can buy anything from education to beauty, due to the fact that money is valued more than the lives of those who do

    Read More

  • Inequality in America

    562 Words  | 2 Pages

    In the United States there are four social classes : the upper class, the middle class, the working class, and the lower class. Of these four classes the most inequality exists between the upper class and the lower class. This inequality can be seen in the incomes that the two classes earn. During the period 1979 through the present , the growth in income has disproportionately grown.The bottom sixty percent of the US population actually saw their real income decrease in 1990 dollars. The next 20% saw medium gains. The top twenty percent saw their income increase 18%. The wealthiest one percent saw their incomes rise drastically over 80%. As reported in the 1997 Center on Budget's analysis , the wealthiest one percent of Americans ( 2.6 million people) received as much after-tax income in 1994 as the bottom 35 percent of the population combined (88 million people). But in 1977 the bottom 35 percent had about twice as much after tax income as the top one percent. These statistics further show the disproportional income growth among the social classes. The gr...

    Read More

  • Inequality And Wealth Inequality

    713 Words  | 2 Pages

    Wealth inequality is a real issue that needs to be fixed. The imbalanced growth of the upper class compared to the middle class is a danger to American society as a whole. The rich becoming richer while the middle class remains the same leads to a power imbalance, with the rich using their money to run the country the way they see fit while the middle class speaks to ears that do not listen. The issue of wealth inequality needs to be fixed by raising taxes on the rich.

    Read More

  • Income Inequality in the United States

    3100 Words  | 7 Pages

    Between the end of World War II and the late 1970s, income inequality in the U.S. was reduced; but since 1970s, the situation with wealth distribution has changed. Data from tax returns in 1976 show that the top 1 percent of households received 8.9 percent of all pre-tax income. In 2008, the top 1 percent’s share had more than doubled to 21.0 percent.

    Read More

  • Division of the Races

    705 Words  | 2 Pages

    With these information about wealth and history, it is concluded that one of four races considered nonwhite have one chance of growing in their economy. The racial wealth gap can take people back in time to see how the economy of the nation was created. There is no fairness in base of the economy. If each one of the citizens in the coutry are considered equal under the law, why can’t it be the same in the economy? Segregation and discrimination continue to exist in the nation. Whites are not considered equal as nonwhites. In conclusion, if this gap between the races perdures to be open there will never be true equality and justice.

    Read More

  • The Cycle of Poverty

    1204 Words  | 3 Pages

    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.

    Read More

  • Income Inequality

    939 Words  | 2 Pages

    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...

    Read More

  • Argumentative Essay On Wealth Inequality

    1189 Words  | 3 Pages

    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).

    Read More

  • Essay On Income Inequality

    1524 Words  | 4 Pages

    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.

    Read More

  • Effects Of Economic Globalization

    772 Words  | 2 Pages

    Economic globalization plays the main role in causing the widen gap between rich and poor among individuals as well as countries on global. Although there always exists the differences between the wealth and the impoverished, hardly has it lengthened as large as today. In term of individuals,

    Read More

  • Social Inequality

    1193 Words  | 3 Pages

    As we prosper through time, inequality is slowly less evident. A lot of people don't realize that although things are improving with time, inequality is still prominent in our society. The people that are failing to realize that there still is inequality, are the fortunate ones. They rise well above the poverty line, and usually live relatively economically sound lives. They are the people who are supplied with our society's benefits.

    Read More

More about Wealth Inequality

Open Document