The theory of Trickle-down Economics does not apply in these countries because what financial assets do go into these countries usually remain at the top of the social ladder (Diaz). All of this is done to benefit these large companies and exploited countries are left with no economic growth and no ability to catch up with the rest of the developing world. Similarly in the U.S. this is seen in the top one percent of society account for almost half of the countries income (Bernstein 2-4). The extent of poverty and economic inequality in the U.S. and across the globe has not been properly handled or remedied. Corruption of government officials and the political weight that large international businesses use has only widened the economic inequality gap.
Income inequality is a problem facing the United States today. Income inequality, also called economic inequality, is defined as “The unequal distribution of household or individual income across the various participants in an economy.” (Income Inequality). There is a huge dissimilarity between the poor in society and the rich. Income inequality is a real problem, which we have today; however, there are both positive and negative aspects on whether or not the issue should be resolved. Income inequality is a problem facing the United States today.
In truth, class mobility is hugely difficult and few can succeed when the poor get poorer and the rich get richer. Therefore, there are movements, such as Occupy Wall Street, that take a look at this wealth gap and seek to close it, protest, freedom of speech, all ideas and movements in which I believe. Wealth and the struggle to obtain it is clearly an issue, but I believe that how one perceives their wealth may also be a topic for research and, therefore, I have many questions regarding it. Wealth perception can manifest itself physically in different ways. Would those whose wealth perception is more affected by their neighbors’ wealth also therefore more likely to be affected by other stimuli (i.e.
Surviving in America has become increasingly more difficult due to the Government’s lack of oversight which causes the income gap to increase and the middle class to disappear. Due to an extreme gap of income between the wealthiest 1% and the remaining 99% in America, the middle class is dissipating to nothing because of unequal distribution of wealth. Poverty in America is a major issue that can and should be addressed as soon as possible because unequal distribution of wealth is causing greed, controversy and hate among millions of citizens. Although an income gap can be very inherent in capitalism, the Government should do more to help combat income inequality and unequal distribution of wealth because it takes advantage of the public and completely dissolving the middle class. An income gap is sufficiently killing the American economy and the Government should step in to help fix this issue.
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).
Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes.