Income Inequality

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Income inequality in USA has been on drastic increase ever since the great economic depression. Various researches reveal that the income disparity between the wealthy and the poor is even higher than initially thought. Research done by IMF established that those societies with huge income disparities experience slower and unstable growth and development. America being one of these societies, it is exposed to political and economic instability. Just like inequality, income disparities may result into societal corrosion and division. Apart from increased crime, Income inequality has resulted to widespread poverty in USA. Therefore, the paper will summarize different sources about effects that income inequality has to the USA population.
Allen, Fredrick. "How Income Inequality Is Damaging the U.S." Forbes, 2012. Web. …show more content…

" Causes and Consequences of Income Inequality: A Global Perspective” 2015. Web.
The article explains that income disparity is among the current challenges affecting most developed and developing nations. The article explains the importance of the legislators and economists to concentrate on improving incomes of the lower class and middle class social classes. Research conducted in by these authors reveals that income disparities affect economic growth and sustainability. Increase in income for the bottom category of income distribution has a positive influence on the GDP of America. However a similar increase to the 20% of the highest earners results to drop in GDP if the 80% low earners” income drops. This therefore means that income disparity has severe consequences in economic growth. The research therefore concludes that income disparity is an evil that must be tackled appropriately.
K Bryan, Kevin , and Leonardo LeMartinez. "On the Evolution of Income Inequality in the United States." Economic Quarterly Journal 2nd ser. 94.2 (2008): 97-120.

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