Is America going to collapse due to our economic inequality? During the second major industrialization, extreme wealth hit America and monopolies were born in the business world as well as more defined classes based on wealth. Robber barons like Vanderbilt, Carnegie and Rockefeller held a new kind of wealth, owning industries while the workers under them lived in the slums of the city. Modern day America has founded laws against monopolies and such, but we are seeing the three standard American classes of wealth, upper, middle and lower, change. The upper class becoming wealthier, the middle class disappearing and joining the ever growing lower class. The article “Trouble with the Super-Rich” by Barbara Ehrenreich brings to front the problem …show more content…
Year’s ago, mention of this widening gap between the privileged and the struggling was considered “Marxist”, but now the facts are too evident to be blamed on a belief. The richer continue to get richer and the poorer get poorer; due to the fact that, the wealthy pay the labor working majority unfair wages. Ironically, this “supreme” group makes their fortune because of these under paid people. For example, Walmart a low paying corporation owned by the wealthiest family in America. As previously stated, the success of the upper class is at the expense of the lower class and we see this in more ways then one: late fees and rates are collected by the rich, Realestate is bought up by them, and they have control of politics. The solution seen most fit by Ehrenreich and Lowenstein would be to remove the classes and have an egalitarian …show more content…
While the wealthy are deciding which Louis Vuitton shoe to purchase, the unfortunate are trying to pay rent and buy food. The sheer number of homeless people seen wandering the streets is a tell tale sign that America has a problem. The wealthy make their money off everyone else; such as the Walton family, as mentioned. Their family’s wealth is 149 billion dollars, and they are currently the richest family in America (Richest Families). The fact of the matter is most of their employees are paid minimum wage, most likely working two jobs just to get by. As Ehrenreich says, the money collected from “..all those late fees, puffed up interest rates, and exorbitant charges for low-balanced checking accounts do not… go to soup kitchens”. Does anyone know where the money goes? Oh right, the rich. Education is very important for success and of course, the best education is usually private school for K-12. Public schools teach kids for free, as it should be, but the standard of private compared to public is unequal. College is not free; although recently community colleges are pushing to be made public. Which should happen so the lower class students do not have to rely on scholarshipsand grants to receive a higher eduacation. The students that are unable to afford college are at a disadvantage to those wealthier students who can afford any good school they get accepted to. The fact is, the rich
The film “Inequality for all” directed by Jacob Kornbluth, begins with Robert Reich asking students three questions to consider in a lecture when talking about the uneven distribution of wealth. First, what is happening regarding the distribution of wealth? He then inquires to why this is happening. Last of all, he asks the students if the distribution of wealth is a problem in America. He addresses these questions as well as many others in his lecture on the growing divide between America’s rich and poor. Robert Reich is an economist, author, and educator as well as public policy professor who served in the Ford, Carter and Clinton administration. He has dealt with this particular topic for over three decades and continues to spread his political views as a professor at the University of Berkley. Furthermore, he talks about the widening gap between the wealthy and the poor/middle class. He goes beyond the obvious facts to show us why this is happening and uses statistical data to display this growing problem. He gives concerning evidence that wages are declining, and that America’s weakening economy is based on consumerism.
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
Weber, Wright and Tilley each contribute various theories to that can be applied to inequality and stratification within the contemporary United States. Reaching back to Weber’s work on class, status and parties, it is clear that this class is still a relevant concept even today. Weber views the class stratification system as a segmented structure, broken down into the simple components of class, status and party which in turn relate to power within a capitalist society. He defined “class situation” in relation to the following conditions (1) "have in common a specific causal component of their life chances in so far as (2) this component is represented exclusively by economic interests in the possession of goods and opportunities for income,
I believe that there is too much wealth and income inequality in the United States
In "Class in America", Gregory Mantsios says that "when politicians and social commentators draw attention to the plight of the poor, they do so in a manner that obscures the class structure and denies any sense of exploitation." Based off our readings, class discussion and films, income inequality is known to be erased or ignore. Our society frowns upon the expression of income in our daily conversations, as it could be seen braggy or a complaint depending on your status of income. Because it's frowned upon to talk about, the topic of income inequality becomes erased or ignored. In addition, income inequality in America's class structure can affect people's ability to reach their American Dream.
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.
The opposite claim, as it were, is that the gap in income levels does not necessarily prevent the lower and middle classes from achieving the American Dream and that the supremely rich are a necessary fixation in the United States because they employ so many people. Therefore, the stability of the economy requires this inequality. In an essay written by Brandon King, who believes that the American Dream is still fully obtainable by all classes, he says, “...We should keep in mind the ways in which large businesses and financial insti-tutions enable many others to attain economic stability and security.” Although this view is very understandable and yes, the economy does partially rely on people of wealth for business, the excess wealth of those that own most of the money in the United States (not those of moderate wealth, but those who own the majority of it) is unnecessary and unbeneficial to the rest of the country. The majority find themselves unable to gain enough footing to provide themselves with the requisite materials to catch up to a world in which the list of imperative resources for success keeps growing longer and the ability to acquire these things keeps getting
A kid growing up in poverty does not have near the same probability of graduating from a university as a wealthy individual does, and each learns to value post high school education accordingly. Do you think most poor hungry kids are going to think about college after seeing flashy drug dealers from their own neighborhoods driving Benzes, wearing designer clothes, loaded with jewelry, and toting matching Rolex watches? They know this kind of life is morally wrong, but do you think they would rather see their families continue to live like rats? Many of these kids have already dropped out of high school to better support their families by working a full time job. So many times funding is not the only problem. Sure, they could probably get financial aid to go to college and make even more money in four to six years, but hungry stomachs and overdue rent payments just can’t wai...
America’s upper class has been getting richer since the past three decades, and we have still not found a way to stop this. We have been unable to find a way to distribute America’s wealth equally, so we can have a decent lower class and a good middle class. Inequality has caused many people to struggle in various ways, but their is alway another side to the story.
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 poor gets poorer, and the rich gets richer. Economically speaking, this is the truth about Capitalism. Numerous people agree that this inequality shows the greedy nature of humankind. The author of the source displays a capitalist perspective that encompasses an individualist approach towards an “un-ideal” economic system. The source articulates a prominent idea that capitalism is far from perfect. The reality is, as long as capitalism exists, there are always those people who are too poor or too rich in the system. We do not need elitists in our society but that is exactly what capitalists are. In this society, people are in clash with those who “have” and those who “have not”, which creates conflict and competition. Throughout
while average American chief executive officer earned 42 times as much as the low-level employees, currently the top managers make 531 times higher than the average workers. The class struggles that Marx described in his economic theories played a critical role in widening the income gap (Royce, 2015). The existing economic policies such as free trade mean that the high class can quickly supply their products throughout the world. On the other hand, the low-income households mainly benefit from the increased competition that forces the local firms to reduce the prices for their products. However, such advantages do not impact directly on the disadvantaged families’ wealth stators.
If income inequality continues to grow, the economy will break down. For example, if the housing price continues to rise because of the rich people, poor people will not have a place to live since they cannot afford to buy these expensive houses. When this happens, it will create another housing bubble because the houses are not worth buying, which means the market value of the house exceeds the house’s value; therefore, nobody will buy the house including the riches since they already have houses to live. Moreover, poor people do not believe they can get access to wealth because they cannot afford anything, and they cannot afford the tuition fees for a good education, which is the traditional route to success.
Money is an essential part of life where every people can satisfy whatever they need and every person in America has a chance to find a job. However, some of the people in the country wanted to go on with their life freely by being a part of a welfare. Furthermore, distribution of wealth is a huge demand of every citizen. Everyone today is trying to look down for every people in the lower class, as they did not give any benefit to the country, waiting for the benefits that they will receive from the government. For instance, when most lower class people have gone through a financial crisis due to overspending, insufficient fund or pay for their work to support themselves and/or their family. The example shows that lower class people made the economy of the country unstable, however, the middle class and the higher class is at fault as well. Furthermore, even though the benefit of that the lower class received is from the middle class, the middle class as well benefits from the higher class. To sum up, every class is at fault towards giving the country’s economy a positive