1. Tax Cuts Caused Income Inequality Income inequality is a big problem in the United States because the top, wealthiest American saw huge increases in their incomes, which the rest had their incomes go down. Bottom people do not have the same amount of money and the opportunity to move up the social ladder as the rich people do. In order to reduce income inequality, the government needs to tax the rich people more, and give poor people more money and more social services - education, food subsidies, health care. Tax cuts are only benefiting the richest people, and will widen the inequality gap between the rich and the poor.
The consumerism in the 1920s paved the way for a changing life style and attitude over money and spending in America. Many Americans acknowledge that we, as a society, spend too much money, but this does not stop us from wasting millions of dollars on products and services that we never use. It is true that consumerism has some positive effects, such as improving the economy, creating more employment opportunities and increasing the standard of living. However, the over spending and excessive wasting associated with consumerism result in an unhealthy craving for goods, decreased value of spiritual and moral values and excessive greed; all of which plague American society. The end of World War I ushered in a new era of prosperity and steady economic growth in the United States.
Wealth inequality is a real issue that needs to be fixed. The imbalanced growth of the upper class compared to the middle class is a danger to American society as a whole. The rich becoming richer while the middle class remains the same leads to a power imbalance, with the rich using their money to run the country the way they see fit while the middle class speaks to ears that do not listen. The issue of wealth inequality needs to be fixed by raising taxes on the rich. Paul Krugman 's New York Times article “We Are the 99.9 Percent” and George Packer 's Foreign Affairs article “The Broken Contract” both share similar points of view.
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.
Rich people form groups together and surround themselves with like-minded people, while average people think rich people are snobs. The truth is, the rich would just rather not surround themselves with negativity, and when they surround themselves with people with a like mind, it helps them to stay positive and stay on track with their goals. This is one reason why the rich are rich; it has to do with who they choose to be surrounded by. Most of the time, the average person would just assume it is impossible to be rich, and they think of all the things they cannot do, but the rich chose not to think that way, and that is another reason why the more wealthy folks are different from the people who are not. The last reason the rich are different than the majority is because the rich actually spend their money differently than those who are not.
While the governme... ... middle of paper ... ...ve more money to spend on people who need it. America’s social inequality can gain from it by bringing the rich and wealthy closer to the middle class. These steps need to be taken in order for the United States to progress and return to a country of opportunity. Krugman believes that “today America’s state is troubled” but we can help “to reduce inequality and make America a middle class nation again” (Krugman 263). The government can profit by raising the taxes on the rich.
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.
In order to control the money supply the government cut borrowing and spending, which in theory would reduce the money supply, inflation and unemployment but interest rates had to rise to stop consumer borrowing, which in turn increased the exchange rate. High interest rates curbed consumer borrowing, which reduces demand for products, along with a high exchange rate ruining demand for exports ... ... middle of paper ... ...ector borrowing is not the enemy of unemployment. If the government borrows too much then there will have to be increases in taxes, mainly corporation tax and this will also contribute to some unemployment, but the public sector does help employment in some ways. Education and training (funded by the government) provides a skilled, desirable workforce, which will encourage British firms to employ British workers instead of looking for other skilled workers in an increasingly globalized world. The National Health Service also reduces the amount of residual unemployed and therefore contributes to keeping employment levels high.
These individuals use their wealth and fame to run for political offices in our government. Then work together with other individuals, with similar purpose in mind, to create to bills and regulations to future benefit and protect their wealth and business ventures. An example would be the idea of tax reduction on our society. In general aspect, the idea of tax cuts seems to benefit us all as a society, but the upper class exponentially benefit from these reforms at a much higher degree. Other examples of these reforms helping the wealthy are the government buy outs for big businesses that seem to be in trouble.
Causes of Inflation Inflation is defined as an increase in the expected price level and has been the signal for an improving economy, but it has also weakened an economy due to the unemployment it usually produces which usually hurts the Middle class the most. A healthy rate of inflation means an expanding economy due to higher tax revenues for the government and higher wages for businesses that are booming due to the high demand of their products. But if inflation surpasses of what is expected than employer will have to reduce wages to meet these new prices. When the Federal Reserve creates inflation most argue that this is robbing people of the money that they have saved because they have to use it due to the rise in prices. Printing