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.
For instance, developing from preindustrial societies such as hunters and gatherers into modern industrial societies based on capitalism. A capitalist economy is defined as an economic system based on private ownership of capital. I believe that capitalism as a way of thinking that is fundamentally individualistic; that the individual is the center of capitalist endeavors and should be free to pursue their own interests. Thus individuals that are pursuing their own interests will guarantee the interests of society as a whole, which is the complete opposite to the hunter and gathering societies. Capitalism is problematic due to its bourgeoisie and proletariat association that produces a class system.
However, some critics of income inequality will argue that it will always be present and is necessary to stimulate growth. Nonetheless, the problem is not only that the gap between the poor and the rich is widening but that income inequality is causing devastating market and government failures. We look in particular to the case of the United States. The US is the world’s leading power and hegemon, who also has the world’s highest GDP and GDP per capita. However, in recent years the gap between the rich and the poor has been growing at a fast pace.
To truly comprehend the issue of income inequality, one must first objectively separate the two ideas. A capitalistic democracy is a double-standard system (Okun). Such a system pursues an egalitarian political and social ... ... middle of paper ... ...a market economy. This however, has been proven ineffective in countries such as Venezuela, which has ended most foreign trade and investment and built a state-owned economy. (Saunders) The gap between the rich and the poor only increased more, and the living conditions of the poor have deteriorated severely due to the significant inflation in prices.
The lower classes are suffering as the upper classes continue to thrive, and this must be improved if the United States expects to be a global economic leader. The tax cuts for the wealthy have caused the great divide between classes to separate further, and tax increases for the wealthiest Americans will not only help to improve this income gap, but they can fund programs that will help the lower classes. In Oct... ... middle of paper ... ...late the economy have been proven ineffective, as they promote inequality between wealth classes. We can benefit everyone through these increased taxes, funding new programs and distributing wealth more equally among the population. The wealthy may disagree, but in a country increasingly divided by income, we may not have a choice.
In fact, the distribution of income is no worse than it has ever been, and certainly better than when the count... ... middle of paper ... ... If everyone in this nation were aware of the influence that income inequality has on the people’s lives, many would be surprised and outraged. While the incentive’s and rewards of higher income are what fuels the economy, and what raises our standard of living, reaching that level of income has been difficult in the past and seems to be getting worse. Income inequality has been on the rise since the 1960’s, according to the graph of the Gini index, a statistical index of (in)equality. Those incentives of higher income are becoming scarce and costly, and many people think it isn’t worth the work to reach it.
There has been a dramatic shift of inequality within the United States. This shift has favored the wealthy and left the middle class struggling to pay for simple items such as healthcare, childcare, and education. It has been argued that today’s middle now resembles the working poor. Due to this imbalance, the United States economy has suffered from wage decreases, child poverty, segregation, and minimal upward mobility. Inequality is bad for economic growth.
Socialism Socialism is a kind of monetary system, a political association, and a social speculation. Socialism is based on the idea that governments should have some control of the nation 's economy, including the earnings of manufacture, and the directive of trade rather than the individuals. Socialism came about from watching the achievements of capitalism. Socialism was first used to explain disagreements to the free enterprise and market economies. The Industrial Revolution was the reason for many social troubles.
The system is suffering from the effects of high costs, low graduation rates, and high student loan debt. The benefits of a higher education are still numerous and education is still the key in the fight to improve the struggling US economy. The more individuals we can get through the system and graduating with a degree, the more human capital we have to use to help us grow economically and with that growth should come more jobs, lower unemployment, and a growing middle class.
“The fact that tens of millions of workers will still be trapped in low-wage hell while a sliver of Americans live better than the kings of old will seem like a minor detail.” (David Callahan) Hard working individuals are treated unequally in retrospect to the little amount of income they receive compared to the 1% community and the limited amount of work they need to complete to be considered the 1%. Income inequality causes big businesses... ... middle of paper ... ...dangerous level, and the government has turned a blind eye to this issue. The government should step in and do more to fix this issue because income inequality is causing controversy and discrimination between the 1% of wealthy individuals and the not so much, poorer less fortunate 99% of America 's working class citizens. With income inequality on the rise, it is slowly but surely killing our country from the inside out. It is causing the middle class to slowly dissipate into a false reality with endless hope for recovery and modification.