Essay about Inequality Is Bad For Economic Growth

Essay about Inequality Is Bad For Economic Growth

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There has been a dramatic shift of inequality within the United States. This shift has favored the wealthy and left the middle class struggling to pay for simple items such as healthcare, childcare, and education. It has been argued that today’s middle now resembles the working poor. Due to this imbalance, the United States economy has suffered from wage decreases, child poverty, segregation, and minimal upward mobility. Inequality is bad for economic growth. Distribution of wealth, education, and health are contributing factors of inequality which affect economic growth.
Over the years, distribution of wealth has been a major issue which has weakened economic growth. One main government policy that weakened economic growth was the reduction of taxes. During the seventies, the United States started to see a dramatic change in labor. Unions started to lose their bargaining power, wages stopped increasing for workers, and production was being shipped overseas to unregulated markets. The middle class was now under attack by its own government. Government was now setting the rules which would favor the wealthy and leave everyone else behind. One dramatic change in inequality was Ronald Regan’s economic policies.
Within Ronald Regan’s economic policies, he reduced taxes from seventy-percent to twenty-eight percent (thebalance.com). Over time, this reduction impacted the inequality of the economy because the economy needed that extra income from the wealthy to support infrastructure repair, Social Security, and Medicare. As Robert Riech would state in his documentary Inequity for All, “…the rich save their money [they] get the most money and don’t put it back into the economy (Inequality of All Documentary). The rich ...


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... our text states, “…Men and women, aged 24-64 would developed heart disease and related that to their income class (Sackery, Dollars and Sense 8th Edition). These medical conditions slow down our economy because these issues add to the high paying prices of medical cost.
It is safe to say that inequality doesn’t allow an economy to grow. An economy needs equality for everyone in order to be successful. France has an economy system which they pay higher taxes and are able to work less hours. This type of system allows the French to have better social programs which reduces stress at work. The Dutch have an educational system were rich interact with poor kids. This interaction allows for a better chance of upward mobility. Inequity doesn’t allow for an economy to grow. It creates barriers which oppress people to stay within their class system.





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