Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The importance of the middle class in the United States
Don’t take our word for it - see why 10 million students trust us with their essay needs.
“Inequality for All” is a self-directed film documentary starring the former Secretary of Labor, Robert Reich. In his documentary he provides pertinent information on the economic condition of the United States, specifically outlining the roll of Middle Class citizens and their contribution in the wealth and condition of the United States (Kornbluth, 2013). The documentary began by drawing a clear line between healthy forms of inequality and the issue that inequality opposes, defining inequality as the economic difference between classes. Reich further explains that the United States possesses the most uneven distribution of income in the world. However, it was not always this way (Kornbluth, 2013). After World War II, during “The Great Prosperity” there was a small gap inequality, the rises of unions and incredible prosperity in our nation (Kornbluth, 2013).
Additionally, Reich presents a historical overview of our tax-history, noting significant changes that occurred in 1928 and 2007 where the middle class became stagnant, the top one percent of the wealthy began to boom and those who lived in poverty, stayed (Kornbluth, 2013). This poses major concern. The United States is funded by
…show more content…
In 1978, when higher education rates started to flatten out, we experienced a shift in the classes (Kornbluth, 2013). Thus, Reich (2013) could not emphasis more that the U.S Government and the top one percent of the wealthy should be paying into a highly skilled workforce, in order to expand the working class and decrease inequality. Finally, Reich (2013) ends his film explaining the issue behind presidential elections and how the top one percent stays in power by shuffling millions of dollars into their campaign so they can call in favors later. Favors such as bailouts, subsidies and taxes that keep their money secure and the people
According to Gregory Mantsios many American people believed that the classes in the United States were irrelevant, that we equally reside(ed) in a middle class nation, that we were all getting richer, and that everyone has an opportunity to succeed in life. But what many believed, was far from the truth. In reality the middle class of the United States receives a very small amount of the nation's wealth, and sixty percent of America's population receives less than 6 percent of the nation's wealth, while the top 1 percent of the American population receives 34 percent of the total national wealth. In the article Class in America ( 2009), written by Gregory Mantsios informs us that there are some huge differences that exist between the classes of America, especially the wealthy and the poor. After
Though ‘Reaganomics’ was successful both at controlling “stagflation” and promoting economic growth, it has and always will be an extremely controversial topic regarding the redistribution of wealth. Immediately after being sworn into office, Reagan implemented the first of many tax cuts. The Economic Recovery Tax Act passed in 1981 took 20% off taxes from top income levels and 25% off taxes from all lower income levels. Additional tax cuts, enforced in 1986, lowered taxes for those with high incomes by another 28% and those with lower incomes by 15%. These cuts were enacted based on the principle that tax breaks for the upper echelon of society would encourage investment and spending, creating new jobs for lower income individuals.
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].
Since 1980, America has experienced a quick and drastic change in income distribution between the top 1% and the rest of the country. The graphs below from the Center on Budget and Policy Priorities show how tax policies implemented by the Reagan Administration have compounded over the past thirty-three years to create drastic income disparities.
In the documentary “inequality for all”, Robert Reich examines the overall state of inequality in America, and explains the intricate processes involved in the economy, which determines the distribution of wealth, and how both the middle and upper classes utilize it. During the introduction of the documentary, Reich states “I like having a Mini Cooper. I sort of identify with it…. We are sort of together, facing the rest of the world”. Although Reich is making a comparison between the size of his car and himself, the overall inference of this quote refers to the immense scale of the American economy. In this sense, Reich acknowledges that he, and many other Americans, are unequal to upper class residents; although, the inequality itself isn’t labeled as a negative consequence. In fact, Reich acknowledges that “some inequality is just inevitable”, meaning that inequality within an economy is an intended consequence of American capitalism which, if done correctly, can create prosperity for any economic class. Instead of seeing inequality as either black or white, Reich examines the different effects of inequality at different magnitudes, and asks whether inequality can be a problem, and if so, when it becomes one. To do
Throughout the years, “ U.S income inequality has been increasing steadily since the 1970s and now has reached levels not seen since 1928” (Source A).
New Nationalism focused on eradicating economic inequality. In 2007, the top 1 percent of Americans owned 23.5 percent of the nation’s wealth (Pear, 2011). This problem has increased, not gone away, since Roosevelt addressed it in 1910. Unfairness in the tax code has become a prominent topic of political discussion. President Obama called for alterations to the U.S. tax system, which allows millionaires to pay lower rates than middle-class workers like teachers and firefighters, in his 2012 State of the Union address (“Remarks of President Barack Obama – As prepared for delivery State of the Union Address,” 2012.). In December, the president traveled to Osawatomie to speak. He echoed Roosevelt’s New Nationalism, saying he believes “this country succeeds when everyone gets a fair shot, when everyone does their fair share” (Fox, 2011). Although he spoke in Os...
Wilhelm, Heather “The Great Income Inequality Sham” Real Clear Politics. May 2013. Web. 29 Apr 2014.
Between the end of World War II and the late 1970s, income inequality in the U.S. was reduced; but since 1970s, the situation with wealth distribution has changed. Data from tax returns in 1976 show that the top 1 percent of households received 8.9 percent of all pre-tax income. In 2008, the top 1 percent’s share had more than doubled to 21.0 percent.
Reich, Robert. "Why the Rich Are Getting Richer and the Poor Poorer." Mountain View College Reader. Neuleib, Janice. Cain S., Kathleen. Ruffus, Stephen. Boston: 501 Boylston Street, Suite 900. 2013 Print.
Reich, Robert B. “Why the Rich Are Getting Richer and the Poor, Poorer.” A World of Ideas:
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...
If I had to describe a moment from INEQUALITY FOR ALL that is really sticking with you – maybe you found it particularly inspiring or particularly troubling it would be the statement made by Robert Reich, “Of all developed nations the U.S. has the most unequal distribution of income.” What was it about that moment that is so memorable? He also states, “the richest 400 people in America have more wealth then the bottom 50 million of us put together.”
Economics of Reich “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. One very important factor Reich examines in his essay is that large corporations are always trying to find the edge, whether that is new technology or cheaper wages. One may ask, how does that affect me?
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.