In life, people usually stereotype individuals based on their income. There are two extremes to income, which are wealthy and poor. The middle class, which most people were classified as years ago, has almost vanished completely. The pay gap between the wealthy and the poor people has become increasingly diverse over the past decade. Everyone has always wanted to be wealthy, but not everyone has succeeded in becoming wealthy. Unlike some people Michael Eisner, CO. CEO of Walt Disney, has become very wealthy. He made more money in one day than some people made in over ten years. “By exercising his stock options, Eisner boosted his take to an astounding five hundred and seventy-five million- more than a million dollars a day” (Cooper). The wealthy people are rising above the poor and middle class and becoming more common than the others. If you would have researched about income a few years ago the middle class and the poor would have been more people than the wealthy. The numbers of poor and middle class people has not changed, but the number of wealthy people has increased tremendously. Poor people has not increased or decreased over the years unlike the wealthy people. One reason why it is not changing is that since there are more wealthy people and money the Cashion 2 …show more content…
Because of this, a person has to pay more and still causes them to be poor, even though we have more industries and factories. Since taxes rates have decreased over the years and the government is not doing so well they have thought about cutting out social security or just doing away with it. If they do so it will hurt the lower class people the most but will not affect the upper class so much. The lower class people will keep becoming poorer and poorer as the years go buy. “’the average pretax income for the bottom ninety percent of households is almost nine hundred dollars below what it was in 1979,’”
Sklar, Holly. “The Growing Gulf Between the Rich and the Rest of Us”. They Say I Say. Gerald Graff, Cathy Birkenstein, Russel Durst. New York: W. W. Norton & Company, 2009. Print.
3. What are the effects of this wealth inequality in the US and what causes it, as well as some possible solutions and their ramifications, will all be discussed and answered below. There has always been a wealth gap between the richest and poorest in society. However, in the past decade, the wealth gap between the richest and poorest citizens in the US has been growing rapidly. In the 70s and 80s, the wealth and income growth rate for both poor and rich people were similar, however, between the years 2009 and 2012 the top 1% income increased 31% while for the bottom 20%, their income actually dropped and for the vast majority of Americans, the average yearly income only increased by 0.4% [4].
In many people's eyes that doesn’t look that bad but if we were to look at the upper-middle class then we can notice a huge jump. The upper-middle class has increased by 16.5%, which is a drastic increase between the years 1979 to 2014. The poor class has decreased by 4.5%. The middle class would decline to the point where there would only be there rich
The media portrays the upper class as something to strive for. Obtaining wealth and material possessions will bring you a happy life. The only way to get ahead is to emulate the rich and powerful and to live vicariously through them (Kendall 316). The media’s emphasis on the upper class takes away from people living life for themselves. Instead, they are persuaded to obtain a lifestyle that is realistically out of their means. Kendall states, “Largely through marketing and advertising, television promoted the myth of the classless society, offering on one hand the images of the American dream fulfilled wherein any and everyone can become rich and on the other suggesting that the lived experience of this lack of class hierarchy was expressed by our equal right to purchase anything we could afford”. Exaggerated views of the rich and successful in America are largely portrayed via television. Which gives a false idea of what happiness, wealth and material possessions can bring (Kendall 317). The poor and homeless are at the bottom of the class structure and are often overlooked, ignored and only portrayed as deserving of sympathy. They are stereotyped to be people who have problems such as drugs or alcohol (Kendall 318). Kendall goes on to explain that the middle class is considered the “working class” and are
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 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.
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...
In the years from 1979 to 2009, the top 5 percent witnessed large increases in income, while the lowest-income fifth saw a decrease in real income.
Income inequality in the United States, as of 2007, has reached levels not seen since 1928. In 1928, the top one percent received nearly 24% of all income within the United States (Volscho & Kelly, 2012). This percentage fell to nearly nine percent in 1975, but has risen to 23.5% as of 2007 (Volscho & Kelly, 2012). Meanwhile, in 2007 (see
Let's take it back to the past in regards to wealth distribution in this country. The fact is that the economy boomed from the end of WWII into the 1970's. “Incomes grew rapidly and at roughly the same rate up and down the income ladder, roughly doubling in inflation-adjusted terms between the late 1940s and early 1970s” (CBPP). Through the 70's economic growth slowed, and the wealth gap widened. Middle-class families were now considered lower class. People relied on the government to help them out with welfare programs. The middle-class class was weakened and the gap grew and grew. There were periods of positive fluctuation, however the middle-class simply never regained it's status that was held in more prosperous times in the past.
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.
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...
“With the development of social and continuous improvement in human activities, people are facing with a more complex economic and financial system” (Ma). Robert B. Reich was another who discussed this issue in his work, Why the Rich Are Getting Richer and the
“Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor.
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.