The Importance Of Income Inequality

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Income inequality is a basic given in any society. The concern for many would be maintaining it to a reasonable degree. After all, the gap in inequality is widening, its a fact that the 1% went from owning about 11% of the national income in 1980, to about 20% in 2014.(Rothwell, "Myths of the 1 Percent: What Puts People at the Top", 2017) The attitudes and perceptions that the public have about income inequality and why it exist matters if creating a robust economy that people want can even be considered into question. The essay will primarily focus on three sources, the articles; Myths of the 1 Percent: What Puts People at the Top by Jonathan Rothwell, America’s Surprising Views on Income Inequality by Maria Konnikova, and How Income Inequality…show more content…
A new book, “The Captured Economy” by Brink Lindsey and Steven Teles, argues that regressive regulations — laws that benefit the rich — are a primary cause of the extraordinary income gains among elite professionals and financial managers in the United States and of a reduction in growth.”(Rothwell, 2017) Key terms like ‘regressive regulations’, and ‘laws that benefit the rich’ emphasize the idea of the widening gap between rich and poor being established via mutuality of favoring…show more content…
“...Davidai[researcher] argues, perhaps a more pertinent explanation, at least in the United States, is one that is distinctly rooted in Western culture: our obsession with the underdog. ‘You have Rocky fighting the champion, the Little Engine That Could. You have stories of successful businessmen rising from nothing...”(Konnikova, "America’s Surprising Views on Income Inequality", 2016). American society loves the idea of ‘making it’, people thus have an optimistic view of themselves. The Pew Research Center found that most people tend to see the ‘American Dream’ as within reach for them, or already having made it.(Smith, "Most think the 'American dream' is within reach for them", 2017) What the ‘American Dream’ means for many of these people is subjective to each and everyone of them; sort of the contrast for nearly half of adults who say they wouldn’t be able to cover an unexpected 400 dollar bill.(Luhby, "76 million Americans are struggling financially or just getting by",
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