The Importance Of Income Inequality In Society

Individuals differ in many ways, including their commitment, ambition, and ingenuity. In a market-oriented economy, individuals move freely between classes contingent on their ability to satiate the desires of others; thus, an economic hierarchy is created, and those who better satisfy consumers wants will make more money. This income inequality provides a greater ability and incentive to produce wealth. By establishing these clear-cut classes, it becomes apparent these individuals are in fact unequal. By nature, consumers purchase goods from suppliers who outperformed their competitors. In a society based on voluntary trade, a person grows rich by producing goods and getting people to purchase those products over the alternatives available.

As Bill Gates creates and sells finer computer programs, he grows richer. In turn, consumers benefit from this system of inequality because they are able to obtain better computer software. Everyone is made better off in this case, and there is no conflict between the success of one person and the consumer’s gain in trade. Thomas Sowell claimed, “It’s true that Bill Gates has more money than some countries, but of course he created more than some countries”. Bill Gates lives like nobody else because he has created something nobody else has.

Contributions from incentivized rich people improve the overall standard of living. All people, including the poor, benefit from these contributions. Standards of living have increased for everyone- as have incomes, for that matter in a society that operates on a free market. Consider Walmart, a company whose prices are lower

Census Bureau classified more than 37 million Americans as poor. To the average American, the word “poverty” implies significant material hardship and deprivation. Politicians, activists, and the mainstream media reinforce this image, asserting that each year, over 35 million Americans live in chronic material deprivation, unable to obtain “the basic material necessities of life. The overwhelming majority of poor people in the United States have cable television, air conditioning, microwaves, and two color TVs. On average, poor people who live in either apartments or in houses are not crowded and actually have more living space than the average person living in European countries, such as France, Italy or England. In reality, as Wilson stated, “The poorest Americans today live a better life than all but the richest persons a hundred years ago” . According to author, “A true picture of deprivation would measure consumption: how much a household spends on rent, autos, food and other items, rather than income: how much a household admits to bringing home in earnings”. Incomes are unreliable tools to measure poverty because people are reluctant to reveal how much they make, and they are less reticent when asked if they have television sets, cars and air conditioning, or if they eat out and go to movies. Poverty figures are overstated, and so is income inequality. Dr. Bruce D. Meyer claimed, “When adjusted for these flaws, the level of poverty is much lower. Instead of