The Gap Between the Rich and the Poor in America

Powerful Essays
The era of volatility has created a shift from America being the middle-class society to simply rich or poor (Sachs, 2011). A gap this large has not been experienced since the 1920’s (Sachs). “The top 1% of households takes almost a quarter of all household income” but an economy this top heavy will not be able to succeed (Sachs, 2011, p. 30). The working classes are struggling with housing, wage, and employment issues. Rich individuals are ignoring these troubles, shipping their business operations out of the country, thus furthering the downward spiral of the economy (Sachs). To make matters worse, this has become in a large part a political issue, because the rich can influence candidates with funding, where the poor and working class cannot (Sachs).

Something similar occurred in America in the 1920’s. New industry fortunes pushed up incomes at the top of the scale while immigrants made up the wage floor (Sachs, 2011). Franklin D. Roosevelt scorned and worked against the minority in the 1920’s that had such a powerful influence over the majority of the country at that time (Sachs). However the economic and political factors differ today from 1920’s. China and globalization add even more challenges to solving the economic crisis at hand (Sachs). In the present economy, “profits are being earned, and kept, abroad” (Sachs, 2011, p. 30). In the U. S. workers are losing jobs as more and more companies are moving operations off shore, these workers also must compete with higher educated individuals and oversea workers for jobs, while manufacturing and other low skill jobs continue to shrink (Sachs). These economic distresses did not come about overnight.

The 1950’s and 1960’s were an era of economic growth with little...

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.... Skilled workers need to be returned to America’s workforce in order to be able to compete in the global market and with the increasing technology. There is hope, the American spirit will not continue to allow these conditions for much longer and future generations are optimistic. Maybe that is what the economy and government in general needs, is more optimism.

Works Cited

Foroohar, R. (2011). A New Era of Volatility. Time. 178(14). P. 28.

Gandel, S. (2011). Shopping: The Rich and the Rest. Time. 178(14). P. 39.

Gandel, S. (2011). What We Spend in a Month. Time. 178(14). Ps. 34-35.

Mankiw, N. G. (2012). Principles of macroeconomics (6th ed.). Mason, OH: Cengage.

Sachs, J. D. (2011). Why America Must Revive its Middle Class. Time. 178(14). Ps. 30-32.

Time. (2011). How We Spent… Time. 178(14). P. 32.

Time. (2011). Money Poll. Time. 178(14). P. 29.
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