An income gap is sufficiently killing the American economy and the Government should step in to help fix this issue. Poverty and the unequal distribution of wealth is a major issue that is killing our everlasting country. American citizens are extensively suffering due to the unequal distribution of wealth and is causing no impact on the top 1% of wealthy individuals. The extreme gap between the amount of income the 1% makes and the 99% of Americans make is sufficiently causing the middle class to disappear rapidly. “The fact that tens of millions of workers will still be trapped in low-wage hell while a sliver of Americans live better than the kings of old will seem like a minor detail.” (David Callahan) Hard working individuals are treated unequally in retrospect to the little amount of income they receive compared to the 1% community and the limited amount of work they need to complete to be considered the 1%.
Retrieved from http://opinionator.blogs.nytimes.com/2013/11/02/poverty-in-america-is-mainstream/ Staff. (2011). Measure by measure. The Economist. Retrieved from http://www.economist.com/node/17961878 US Census.
The main social issue that is affecting America harshly is Poverty! Poverty is crushing the social classes of an ample amount. Dividing the successful class from the impoverished class. Poverty also economically affects America in multiple ways too. It causes a storage in productivity, which slows down the income amount that America makes and circulates, crime has been raised a great amount due to poverty, having to fiend for ways to eat and feed siblings or offsprings so they wouldn 't starve to death, and the rise of governmental financial aid has affected the economy by impoverished citizens.
This hurts the middle-class because fewer jobs are provided for Americans, which is one of the biggest reasons why people fall into poverty. The society then suffers from lack of jobs, rising health care, and not enough savings. The middle-class copes with these symptoms through working longer in life, holding out of retirement longer, and using government handouts. According to Rand, the latest Census data shows us that the average American family has gotten poorer within the last ten years (2013). It has also been shown that the middle-class is further in debt due the real estate values have gone down.
The Social Problems of Poverty and Wealth The economy in the United States is undoubtedly unequally distributed and unstable. Social stratification, the society’s categorization of people in a hierarchy, is to blame for this. Americans subscribe to the perception that everyone should be placed in a certain group for their financial status; high class, meaning the wealthy individuals, or the lower class, the individuals suffering from poverty. Both social classes’ contribute negatively to the people involved. Wealthier communities experience emotional downfalls and isolation while the poverty stricken communities by decreasing their life chances for being successful and even their length of life.
Many of these trends of poverty actually make things exponentially worse by repelling foreign entities who might want to help. So as a result the poorest nations tend to get even poorer. Many of the poorest nations remain unable to attract foreign investors. This seems strange since the whole reason why these investors go to poor countries and build factories is because the workers in super poor nations are willing to work for little to no money. But when you think about it you realize that it’s just too much of a hassle for them to try and ma... ... middle of paper ... ...l improvements in major industries like the transportation industry have also benefited wealthy countries more than poor countries.
Because of this fact, many would argue that “that’s just how it is,” but in reality this is not how a community is suppose to function. As Michael Sandel writes in his book Justice, “As inequality deepens, rich and poor live increasingly separate lives.” Sandel makes an excellent point. As economic divisions, such as the ones present in the United States, worsen, the classes diverge on every level. Wealthy people attend different schools, purchase luxury cars, and live in gated communities. Meanwhile, the poor live in squalor, use public transportation, and attend failing schools.