...Student’s name Subject Title Lecturer’s Name Date of submission Income Inequality Introduction The problem of an increase in household income inequality has been a major talk point in political discussion and public policy. According to Winston Churchill, inequality is unavoidable especially in capitalist societies. However, President Barrack Obama views inequality as not only a major problem but as a defining problem of this generation. It cannot be disputed that income inequality in the United States has been rising over the past four decades. The trend is evident when income is measured both before and after taxes. The income inequality in the U.S today can be compared to those of other developed countries. However, the country ranks amongst the worst in inequality especially after taxes and transfers. This means that less income that is received from higher income households trickles down to lower income earners. A recent study in 2011 revealed that the top earners income increased by around 275% after income transfers and federal taxes. Today, there is ongoing debate as to the effects, causes and solutions of the income inequality. Over the years, debates have arisen whether the income inequality gap in America is a social or an ethical problem. Despite businesses breaking profit records, these income gains have been concentrated on the top 1% (Glenn 58). It is often argued that income inequality is a social injustice and that it is unfair. However, social injustice...
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...Anthony Giovenco Political Science Inequality Paper 12-18-14 The Effects of Wealth Inequality in the United States Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being. There is no doubt that wealth inequality in America has been escalating quickly; the portion of total income earned by the top one percent has doubled since the beginning of the 1970’s. The wealthy are the main beneficiaries regarding income inequality. In the latest consensus of wealth distribution, the top one percent of Americans owned thirty five percent of the nations private wealth, and the top ten percent took home about fifty percent of all income in 2012. This figure is greater than the bottom 90 percent combined. The question commonly asked concerning this matter: How and why is this becoming so quickly unequal is to be examined. First, we must explain what is meant by the term “wealth.” Wealth is the collection of the assets people own. This includes homes, stocks, savings for pension, and bank accounts, minus all existing debts. The main issue regarding wealth inequality is income inequality. Income equality has grown increasingly in the past 30 years....
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...Gerardo Contreras Gene Lee Econ203 March 1 2013 Income Inequality in America Dissemination of income in America has been a major topic of study by many institutions as well as scholars. Statistics have been gathered from numerous sources, which show that the problem of income inequality has significantly risen since 1970. Income inequality was stabilized for many years. Although income inequality has increased amongst the elite countries in the world, America suffers from this problem the most. Research shows that cause of the wide gap in income inequality has not been decided by gender, which by the way has decreased in America in last twenty years. The Income inequality gap has also not been because of race, or the gap been amongst middle class and lower class, however it has increased. The main reason exists and lies amongst the middle class and highest wage earners, with the disparity being extra dangerous as an individual’s income increases. It is stated that upward redistribution can be held accountable for forty percent of the forecasted Social Security deficit in the following century. Research states that in 2011 it was established that the highest earning one percent of families multiplied about 275 percent after federal taxes and income transfers over a period of 28, compared to a gain of just fewer than 40 percent of the 60 percent in the middle of America's income distribution. Additional researchers found that the trend has continually been ongoing since...
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...Problem/Cause and solution In his article, Brandon King gives an unequivocal answer to the question “Is the so-called ‘American Dream’ dead, alive or on hold?” He believes that the ideals and values of the American Dream are very much alive even though many people have lost confident in the Great Recession. Under the difficult economic circumstances today, Brandon redefines the American Dream as the potential to work for an honest, secure way of life and save for the future according to the more intense spending habits of Americans. In order to living the American Dream, Brandon lists solutions to three main problems, inequality, economic insecurity and eroded faith in the American Dream. In sum, he believes that though existing, inequality is not a reason for the lost of American Dream in the poor and supporting the top businesses would help the recovery of economy. He also highlights the values and rules of the American Dream, which would help living and inheritance of this spirit. From my perspective, I agree with the main problems he concludes but for some of his solutions, I stand on the opposite site of the author. I think narrowing the income gap is very significant and so do supporting businesses, while the dependence of the spirit itself is in the less important position. Following are my analysis of each argument. According to the article, inequality is regarded as the most worrisome problem by many people. In contrast with economists like Robert Reich and Paul Krugman...
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...fundamental spirit of American culture is social mobility, where it used to be a place of opportunity for the hard working people to find a successful life. However, since the early 1980’s income inequality has been increasing rapidly as proved by the forever widening gap between the country productivity and hourly earnings of a typical American worker. In fact, according to the Congressional Budget Office income distribution report, from 1979 to 2007 the average real after-tax household income growth for the top 1 percent was 275% while the middle class income growth stagnated under 40%, and this situation is only going to get worst according to empirical evidence. In other words, America is now a country regardless of how hard you are working, most of the gain form the productivity that the laborers contributed is only going...
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...Matthew Andre ENC1101 Professor Neuman December 8, 2011 The Problem Even Congress Cannot Fix: Inequality in America The big story that has been all over the news in recent times is none other than the massive bear of a problem: inequality in America. This not so white elephant has dominated American news stations, but nonetheless has not been resolved. There is without a doubt financial inequality in America, and the main problems with this financial inequality are the flawed educational system where rich dumb kids have a much better chance to graduate college than a hard working poor kid, and the increasingly large gap between the rich and the poor. The cause for the problem of unequal opportunity in schooling is inherently the quality of instructors and schools across the nation, and the cause for the overwhelming rift between social classes is a flawed tax system which punishes success and benefits the poor. Furthermore, the solutions for these two massive problems would be to reform the American educational system to a performance based system and a reformed tax system that broadens the tax base and encourages success. Certainly, the level of financial inequality is an issue. But, why is it such an issue? One of the major underlying problems with financial inequality is the face that rich dumb kids that maybe be in the bottom twenty-five percent of their school but come from families that are in the top twenty-five percent of the socio-economic spectrum have a significantly...
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...The Issue of Income Equality in the US By SOC 100: Intro to Sociology April 29, 2012 A major social problem in America today is its inequality of the distribution of income. "Income inequality refers to the gap between the rich and the poor. The United States has the most unequal income distribution in the industrialized world, and it is growing at a faster rate than any other industrialized country" Bernard Sanders (1997). What's really going on with the economy? - Unequal distribution of wealth and income. [ONLINE] Available at: www.usatoday.com. [Last Accessed 04/27/2012]. Society defines this social issue as the disparity between the few at the very top of the income ladder, and the many at the bottom. Recently, the Occupy Movement has defined this problem has fight between the 1% and the 99%. The social classes that are most impacted by this disparity pretty much cover the spectrum as we are all affected. The most latent effects are probably found in the poor, in single-mothers, and in the minority classes. Those are the classes that have the least amount of economic and social power at the onset. A persons clothing, housing and educational opportunities usually depend on their class, but that is a direct reflection of their income. A person does not gain any class or power without their income being taken into consideration. The only problem is, is that there is also class inequality, which further prohibits people to earn an equal...
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...Every American dreams of finding a job that pays well so that they may live comfortably and take care of their loved onesfor years to come. Most Americans hope to find some way to make a living that they enjoy, something that they view as productive. Unfortunately, many do not have this luxury. In our society, a good portion of the population is forced to hold the base of our country in place while hardly being redeemed for their time and effort, and thus the problem of income inequality. Numbers of these people live from paycheck to paycheck, barely getting by, not because they manage their money poorly, but because the value of their time at work is negligible (Chapter 2 Economic Inequality). Some may even sacrifice happiness at work to find a job that pays better simply because they cannot make ends meet at their current job. Some people sacrifice their sanity and eventually their life just to keep from going under financially. Segregation in income distribution is another cause of these problems, such as that with women or African-Americans who make less than other classes comparatively. In contrast, actors and actresses such as Brad Pitt and Julia Roberts make millions in the entertainment industry, an industry that grosses hundreds of millions of dollars a year creating what adds up to be the same kind of entertainment most people could get out of watching their children play sports or sing in a choir. The question then is how to find the value of work and time in our society...
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...Income Inequality in America is a problem that’s been going on for decades, and many feel that it hardly exists, the many people that feel that way are highly uneducated, and seem to not really care about this tremendous problem that in one’s eyes really has no end in the near future, in fact it has been gradually rising and one feels that it’s just not fair. Unfortunately, there’s not much that can be done, only of course if the poor class of people decide to actually educate themselves and get a higher education. One says poor class, simply because that’s how they’re classified. There are five types of levels that Americans are classified as, and they are: 1. Upper Class, 2. Upper Middle Class, 3. Middle Class, 4. Working Class, 5. Poor. The highest percentage of Americans fall in the Poor department, and it has been that way for decades, and will continue to be that way for decades to come. It’s as if it has been programmed to be that way. The explanation of the Distribution of Wealth, Distribution of Income, Poverty and other topics that have to do with this saddening subject will be argued and clearly clarified for the reader. Income- money, or other benefit, periodically received; the amount so received. Inequality- differences between groups in wealth, status, or power. “Why are some men rich and others poor? The question has baffled philosophers for centuries, and modern economics has not taken us very far towards an answer either “(Jencks, Christopher). Still, we have...
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...security Name Institution Course Date Income Inequality: A Hindrance to Retirement Security Holland, K. (2015). On retirement security, US rank far behind others. CNBC. Retrieved 8 November 2015, from http://www.cnbc.com/2015/02/09/ In this article, the author suggests that America lags behind 18 other countries in retirement security because of the high-income inequality observed in many states in America. The author suggests that according to the recent study, the United States offers little support for retirement security services unlike other developed countries. The author quotes Sweden, Denmark, and Switzerland as among countries that have good retirement security systems. Many characteristics define these economies. First, most of the nations that score higher than the United States in retirement security have high tax burdens. However, these countries have a narrow income inequality. In addition, most countries are also improving on the gap between the poor and the rich. The universal healthcare schemes provided by these countries have also contributed to the good ratings of the most countries that have better retirement schemes than the United States (Holland, 2015). The author has focused on highlighting the importance of retirement security as a key pillar in economic developments. The author clearly states that the United States social security problem lies with the expanding income inequality. The author states that in order to have a good retirement...
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...security Name Institution Course Date Income Inequality: A Hindrance to Retirement Security Holland, K. (2015). On retirement security, US rank far behind others. CNBC. Retrieved 8 November 2015, from http://www.cnbc.com/2015/02/09/ In this article, the author suggests that America lags behind 18 other countries in retirement security because of the high-income inequality observed in many states in America. The author suggests that according to the recent study, the United States offers little support for retirement security services unlike other developed countries. The author quotes Sweden, Denmark, and Switzerland as among countries that have good retirement security systems. Many characteristics define these economies. First, most of the nations that score higher than the United States in retirement security have high tax burdens. However, these countries have a narrow income inequality. In addition, most countries are also improving on the gap between the poor and the rich. The universal healthcare schemes provided by these countries have also contributed to the good ratings of the most countries that have better retirement schemes than the United States (Holland, 2015). The author has focused on highlighting the importance of retirement security as a key pillar in economic developments. The author clearly states that the United States social security problem lies with the expanding income inequality. The author states that in order to have a good retirement...
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...Income Inequality is good and it can benefit everyone. The Majority of people say that Income Inequality is a bad thing but it is actually good. Without rich people, we wouldn’t have all the cool stuff that we have now. Income Inequality actually isn’t a bad thing. People become wealthy so they can buy the stuff that we will eventually be able to get later in our lives. Without rich people, we wouldn’t have all the stuff that we have now. If it wasn’t for innovators like John D Rockefeller, Steve Jobs, or Bill Gates, we would not have the stuff that we have now like cars or computers or iPads. “Income inequality in a capitalist system I truly beautiful because it provides the incentive for creative people to gamble on new ideas and it turns luxuries into common goods.” (Washington Post)....
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...Income inequality is one of the big issues in 21st century. Unequal distribution of income in society is considered to be an obstacle to economic growth. The income allocation of a country’s population can be measured by a Gini coefficient. The value of Gini coefficient can be between 0 and 1 and used to define the income gap between the rich and the poor. The value 0 shows perfect equality and value 1 illustrates perfect inequality. The US can be an example of country with high income inequality. The US Gini coefficient has risen by 20% between 1979 and 2010 (Frizell, 2014). Factors like family structure (i.e. how many earners are there in family), technology (i.e. changes the way that we live), and immigration (i.e. changes the supply of...
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...Jeanette Cepin Power & Inequality In The Workplace Term: Summer 2015 Professor: Bonnie Johnson Final Reflection Essay Wouldn’t it be great if we lived in a society that with hard work, dedication, and discipline we can accomplish the so called “American Dream”? Some have been able to accomplish this dream, but many still struggle and continue to work non stop in order to reach a dream that is almost impossible to achieve. The United States of America, “the land of the free and opportunities”, hasn’t really been the land of the free, with opportunities for all. During my 7 week summer course, I was able to have a better and deep understanding of how the United States is structured to benefit a certain group while denying others opportunities. How those in power acquired their power, work to maintain it through inequality, how these inequalities can a lot of times be correlated, and how can we work together to make a difference. In order to understand inequality we must first identify what are the factors that contribute in creating it. Social class, which can define one’s position in society, contributes to a form of conflict. Social class divisions have always played a prominent role in America. These class distinctions inflict unfair on all Americans. The idea of social class has been a central concept in determining the opportunities a person is capable of having. People from different socioeconomic backgrounds live different lifestyles as well...
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...security Name Institution Course Date Income Inequality: A Hindrance to Retirement Security Holland, K. (2015). On retirement security, US rank far behind others. CNBC. Retrieved 8 November 2015, from http://www.cnbc.com/2015/02/09/ In this article, the author suggests that America lags behind 18 other countries in retirement security because of the high-income inequality observed in many states in America. The author suggests that according to the recent study, the United States offers little support for retirement security services unlike other developed countries. The author quotes Sweden, Denmark, and Switzerland as among countries that have good retirement security systems. Many characteristics define these economies. First, most of the nations that score higher than the United States in retirement security have high tax burdens. However, these countries have a narrow income inequality. In addition, most countries are also improving on the gap between the poor and the rich. The universal healthcare schemes provided by these countries have also contributed to the good ratings of the most countries that have better retirement schemes than the United States (Holland, 2015). The author has focused on highlighting the importance of retirement security as a key pillar in economic developments. The author clearly states that the United States social security problem lies with the expanding income inequality. The author states that in order to have a good retirement...
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