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How Income Inequality is Affecting People

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The disparity between the top income earners in the United States and everyone else is ridiculous. The rich continue to see huge increases in their income while everyone else’s rarely moves. Who is to blame for such a huge income disparity are Republicans, Democrats, neither, or maybe both? However, traditionally right wing republicans have favored reducing income taxes and corporate taxes for the top earners in the U.S. Republicans argue that Bush-era tax cuts on top earnings should be extended to stimulate the economy, while many Democrats back extensions only for lower earners(Marcia Clemmitt, 2010, para 1). While on the left side Democrats generally believe that more government spending can help bridge the gap between the rich and everyone else, Republicans generally don’t. In this report, I attempt how income inequality is affecting people and what can be done about it. Republicans views on income distribution in the economy are perhaps changing Barry Ritholtz (2014) from economonitor reports, “Two out of three Americans are dissatisfied with the way income and wealth is currently distributed in the U.S. This includes three-fourths of Democrats and 54% of Republicans” (para 4). It seems that the majority of Republicans have come to realization that income inequality is unstable and terrible for the United States economy. According to Ritholtz the top five reasons are “one it drags down the economy, two inequality increases the nation’s debt, three inequality leads to social unrest and violence, four cause of our soaring inequality is bailouts for the big banks and socialism, and five big banks are manipulating every market, and committing massive crimes.” The vast majority of citizens would agree that economic growth is vit... ... middle of paper ... ....d.).Pew Research Center for the People and the Press RSS. Retrieved March 22, 2014, from http://www.people-press.org/2014/01/23/most-see-inequality-growing-but-partisans-differ-over-solutions/ Ritholtz, B. (2014, January 28). EconoMonitor : EconoMonitor » 54% of Republicans Say We've Got Too Much Inequality. EconoMonitor RSS 092. Retrieved March 22, 2014, from http://www.economonitor.com/blog/2014/01/54-of-republicans-say-weve-got-too-much-inequality/ Scheartz, N. (2014, February 2). The Middle Class Is Steadily Eroding. Just Ask the Business World.. The New York Times. Retrieved March 24, 2014, from http://www.nytimes.com/2014/02/03/business/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html?_r=0 The Economic Policy Institute. (n.d.).Economic Policy Institute. Retrieved March 22, 2014, from http://www.epi.org/minimum-wage-statement/
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