Essay on Case Analysis : Income Inequality

Essay on Case Analysis : Income Inequality

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Case 2: Income Inequality

Christopher Hodges
Curtis Griffie
Berry Epley
Campbell University
BADM 742: Business Ethics
July 7, 2015

“Income inequality refers to the extent to which income is distributed in an uneven manner among a population. In the United States income inequality is the gap between the rich and everyone else which has been growing markedly by every major statistical measure for approximately 30 years” (Aguiar 2013). Wealth inequality has a close relationship with income inequality due to the nature of not needing a sizeable income because of wealth that was handed down for generations. The supposed problem doesn’t originate from the slogan, “The rich is getting richer and the poorer are getting poorer” but can be best categorized by the slogan, “The rich are getting richer and poor are getting richer but just not as quickly.” The recession officially ended in the US in June of 2009 however many Americans were deeply dissatisfied with the state of the economy. The recession officially ending was more of a political move that did not try to address the economic issues and the income disparity.

In 2013, the medium average American family’s annual income was about $46,700 which is down from $53,100 in 2007. The story is the same for net worth with the median family’s net worth being $81,200 in 2013 down 40 percent from before the recession began. After the recession hit a majority of the toll was taken out on non-affluent Americans so despite what most people think the increase in margins of wealth and income was partially due to the loss of the middle class and the poor and not just from the affluent American gains.

“In 2010 the top 10 percent of earners made about 4.5 times as much as the...

... middle of paper ...

...l Bureau of Economic Research.
Hargreaves, S. (2015). How Income Inequality Hurts America. Retrieved July 5, 2015 from
Rooney, B. (2014). Income Inequality Hurts Economic Growth. Retrieved July 5, 2015 from
Sanger-Katz, M. (2015). Income Inequality: It’s Also Bad for Your Health. Retrieved July 5, 2015 from
Schnurer, E. (2014). Why Inequality is Bad for Economic Growth. Retrieved July 5, 2015 from
Shaw, W., & Barry, V. (2013). Justice and Economic Distribution. In Moral issues in business (12th ed.). Belmont, CA: Wadsworth Cengage Learning.

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