Heather Stahl

1.) Is it possible to have the American dream, the ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination, and initiative, with the country's current levels of income inequality and lessening economic mobility? The concern over a widening gap between economic classes in our country has come to the forefront of the political stage. Many say, that the possibility of achieving the American dream many once sought after seems to be slipping from our grasp. As inequality grows amongst our society, economic mobility shrinks. President Obama recently commented on wealth inequality by saying that it, “jeopardized middle-class America’s basic bargain, that if you work hard, you have a chance to get ahead.” If wealth inequality continues to grow as it has over recent decades, it will ensure not only that most Americans born in the lower class will remain in the lower class but also that the American dream is out of reach for the majority of us. I think the American dream is basically out of reach with the majority of tax breaks benefiting the super wealthy and basically dispelling the advancement of the middle class American.

2.) Offer your opinion of one of President Obama's Middle Class Economics policies and whether or not it would be effective in lessening income inequality or increasing economic mobility.

The White House is proposing to use changes in the U.S. tax code to slow or reverse the wealth inequality trend. A key strategy is to address an inheritance tax loophole that truly benefits the wealthiest Americans the most. The loophole essentially allowing the rich to negate paying taxes upon death, currently enables the heir to inherit this wealth untaxed. After raising those taxes, the plan would use the money to give middle-class families a tax break. This along with similarly aimed proposals are under intense scrutiny nevertheless, it is the best option for the middle class American, as well as the long-term economy. In order for our nation to address the lack of mobility, we will have to adopt a tax code that doesn’t leave the middle class running in a circle year after year making progression nearly impossible. Economic growth has been limited to the top one percent in recent years while the middle class has seen little to no growth. The President’s proposals would essentially redistribute a small portion of the upper class back into the middle class. Since middle class Americans is more likely to spend their income domestically this will result in a boost in demand for goods and services in the economy, which increases demand. This would in turn motivate employers to hire, creating new jobs. This will allow the average middle class American a fair chance at advancement due to an increase in economic mobility.