An attempt to explain the relationship of changing wealth inequality over time, with respect to class and race. The basis for this concept, begins with the causes of prejudice. While there are many causes that relate to prejudice, the context ... ... middle of paper ... ... be said about the overall effects of wealth inequality? As supported previously, income inequality among different racial groups will be more intense than if it were solely based on the changes in class income inequality. This is because minority groups are affected by racial inequality in addition to the affects of class.
Inequality can be traced as far back as possible. It can also be described as disparity. This disparity can be in terms of income, wealth, class etc. Economic inequality can be described as the disparity between income of individuals or household within and outside a country. When “income inequality” is mentioned, most people think about it in a within the country context, but in a world that is becoming more integrated, economic inequality between countries is becoming more relevant.
The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality between countries. Its history can also be briefly summed up under: leaders and their subjects, slavery, and the Industrial revolution. Dealing with the first point, leadership can described as a process, where there is organization of a group (subjects) to achieve a common goal. Leaders are generally in a position where the income they earn is much more, or higher than that of their subjects. The leaders are then seen as better off than their subjects because of the large difference of wealth, assets or income between them.
However, in recent years the gap between the rich and the poor has been growing at a fast pace. This prevalence of income inequality in a free market society like the US indicates that inequality is a direct result of a market or government failure. In a free market it is believed that individuals possess an equal opportunity to be successfully, but because of misallocation of resources in a market economy this is not possible. The resources I am referring to here are those that are needed for a person to escape poverty and earn a higher income. This includes merit and public goods that individuals with higher incomes can afford and indulge themselves in while people with lower incomes or suffering from poverty depend on some endowment from the state, such as healthcare, education, and access to employment opportunities and professional networks.
Making them understand the effects of capitalism and migration in certain countries. Personally, I know that immigration is a key portion of social inequality because in many cases immigrants make up a huge part of the citizens in poverty. Capitalism is also one of the main reasons why there is poverty because with capitalism only the wealthy are receiving money and the poor are the only ones working, but not earning. In the article, it also mentions how globalization and capitalism are both linked together. “The benefits of globalization have been unfairly skewed towards a privileged elite, a trend that leads to lower global growth…”.
The increase of income inequality in recent decades is contradicted with the prediction of Kuznets (1955) that income inequality would be declined if the countries have reached the high level of economic performance and industrialization. Under the economic view, income inequality is understood as the situation in which income is distributed differently across population (IMF 2014). The differences in income distribution can effect directly to both economic growth and poverty reduction strategies of the countries (Jihène & Ghazi 2013). Therefore, causes of income inequality are still the concern of many scholars. There are many reasons that make income inequality become greater such as individual talent, changing in household structure, aging, inequality in accessing social services, corruption (Biewen & Juhasz 2010; Blanchflower & Slaughter 1999; Garvy 1952; Ragayah 2008).
Taking Sides Summary-Analysis Form Title and Author of Article: Christopher Jencks Briefly state the main idea of this article: The main idea of this article is that economic inequality has steadily risen in the United States between the richest people and the poorest people. And this inequality affects the people in more ways than buying power; it also affects education, life expectancy, living conditions and possibly happiness. Another idea that he brought up was that the American government tends to give less help to the unemployed than other rich countries. List 2-4 supporting points or arguments the author uses to bolster the main ideas: A good supporting point that Jencks used to show that the American government tends to give less help to poor than other countries, is a study done using the 90/10 ratio. In the study it showed that within the English-speaking world the United States was the most unequal of all.
March 11, 2014. In this article the authors shows how income inequality has been changing over the time. He also tries to emphasize how large this gap has become by comparing income and taxation of the top 1% with the rest of the nation. Sutter, John. “7 Ways to Narrow the Rich-Poor Gap.” CNN Opinion.
Analyzing the Dispersion of Wealth in Fiscal Economies Paul Kuechenmeister Econ 4331W April 8th, 2014 Introduction Multiple theories have been developed to observe the correlation between income inequality and economic growth. This paper aims to grow off of theories developed in Galor and Zeira (1993) , Barro(2000) , MacDonald and Majeed(2010) . In some countries wealth distribution is fairly even and in other countries the distribution of wealth is extremely disproportional. Which is better off, an economy with low-income inequality or high-income inequality or does wealth distribution not affect the overall economy. In this dissertation I will analyze the effects of income inequality on a country’s economic growth, arguing that the bases of correlation between income inequality and economic growth is dependent on a country’s initial state of economic standing.
Income inequality can be defined as the difference of distribution of assets, wealth, and income between the populations. The term income inequality refers to the inequality among persons within a society. The topic is commonly debated, and the liberties and rights of people are often brought into the debate being made. In America, it has been said that “The 400 richest people in the United States have more wealth than the bottom 150 million put together” leading the reader to believe there is a huge inequality problem that is only growing wider. There is no doubt that the income gap in America is growing, with the middle class taking home 9% less than they had in 1999, but I feel that the government does not have the obligation to lessen the gap between rich and poor.