...The wealth chasm: a dangerous cocktail The street demonstrations of 2011 and 2012 are still fresh in our minds. Thousands of voices chanting, “We are the 99%!” and blockading the stock exchange have not left the psyche of American’s, and were successful in getting their message across. Before 2011, it was heard in whispers: “They have too much.” Now, it’s a shout. The rich are indeed doing very well for themselves. In fact, the wealth gap is almost unprecedented, except for right before the great depression, and the subsequent rebellion that shook the United States that ultimately resulted in the New Deal. (DeSilver, 2013) History doesn’t necessarily repeat, but we are seeing a world eerily similar to that which was in place before 1929: The rich hoarding all the money and anger simmering in the proletariat. Globally, the reaction against this sort of systemic looting of the people by the capitalist class is taking form and is becoming increasingly better organized and more violent. The global wealth gap is a combustible recipe for insurrection, and will result in a collapse of capitalism and the rise of radical left, and right wing ideologies if it is not fixed. The wealth gap in the world is at astonishing levels. A simple browse of the news, or the Facebook feed of any liberal-leaning page will bring up statistics that would seem like they were made up if we weren’t bombarded by them at all times, and the data to back them up. According to William Domhoff of the University...
Words: 1552 - Pages: 7
...Building a Better America—One Wealth Quintile at a Time Perspectives on Psychological Science 6(1) 9–12 ª The Author(s) 2011 Reprints and permission: sagepub.com/journalsPermissions.nav DOI: 10.1177/1745691610393524 http://pps.sagepub.com Michael I. Norton1 and Dan Ariely2 1 Harvard Business School, Boston, MA, and 2Department of Psychology, Duke University, Durham, NC Abstract Disagreements about the optimal level of wealth inequality underlie policy debates ranging from taxation to welfare. We attempt to insert the desires of ‘‘regular’’ Americans into these debates, by asking a nationally representative online panel to estimate the current distribution of wealth in the United States and to ‘‘build a better America’’ by constructing distributions with their ideal level of inequality. First, respondents dramatically underestimated the current level of wealth inequality. Second, respondents constructed ideal wealth distributions that were far more equitable than even their erroneously low estimates of the actual distribution. Most important from a policy perspective, we observed a surprising level of consensus: All demographic groups—even those not usually associated with wealth redistribution such as Republicans and the wealthy—desired a more equal distribution of wealth than the status quo. Keywords inequality, fairness, justice, political ideology, wealth, income Most scholars agree that wealth inequality in the United States is at historic highs,...
Words: 2606 - Pages: 11
...Anthony Giovenco Political Science Inequality Paper 12-18-14 The Effects of Wealth Inequality in the United States Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being. There is no doubt that wealth inequality in America has been escalating quickly; the portion of total income earned by the top one percent has doubled since the beginning of the 1970’s. The wealthy are the main beneficiaries regarding income inequality. In the latest consensus of wealth distribution, the top one percent of Americans owned thirty five percent of the nations private wealth, and the top ten percent took home about fifty percent of all income in 2012. This figure is greater than the bottom 90 percent combined. The question commonly asked concerning this matter: How and why is this becoming so quickly unequal is to be examined. First, we must explain what is meant by the term “wealth.” Wealth is the collection of the assets people own. This includes homes, stocks, savings for pension, and bank accounts, minus all existing debts. The main issue regarding wealth inequality is income inequality. Income equality has grown increasingly in the past 30 years....
Words: 1470 - Pages: 6
...It is no secret that here in the United States there is an uneven distribution of wealth, which leaves many citizens, primarily minorities, at a great disadvantage. Because of this increasing wealth gap, many people are left to deal with poverty, higher rates of incarceration and poor education. I feel that reducing income taxes on the poor and middle class can help to alleviate this situation and help to make life a little easier for the majority. I feel as though giving tax breaks to the poor and middle class would help to slowly reduce the wealth gap here in the United States. In New York the standard of living is so high, it makes it next to impossible to earn a living wage. “Reforming the tax code by eliminating most itemized deductions and tax credits, and lowering the tax rate to 10%-15% for the middle class, would increase the purchasing power of the middle class”. (n.d). For relief, focus on student debt and tax reform. USA Today. Giving the poor and middle class a cut on income taxes can help to make life a little easier on everyone. If the working class is able to take home more...
Words: 510 - Pages: 3
...social inequality cannot be described in one sentence. Factors such as race, wealth, class, gender, age, among others all play roles into why people can sometimes be treated unfairly. However before I introspectively reflect on social inequality, there is one theory that suggests where today’s society is heading for me. Karl Marx is known as a prominent economic and political influence that lived during the 19th century. Marx’s theory of stratification is very applicable to where society, especially in the United States, is heading today. According to Marx, society would become divided into two classes, the dominant capitalist or the working class. Essentially the capitalists consist of the owners of production within a country while the working class consists of the laborers. This represents uneven distribution of wealth and resources, which creates a system of stratification. According to Professor Domhoff of the University of California, the top 20% of the workforce owned 89% of all privately held wealth in the United States as of 2010. There is already a large gap between social classes and will only continue to get worse if we continue down the same path as a nation. Whether through higher taxes on the wealthy or tax breaks on the working class, the gap needs to be closed. Money is king of today’s society whether people want to admit it or not. For me I think the uneven distribution of wealth in this country is a primary factor of social inequality today. In the...
Words: 1336 - Pages: 6
...Economic Inequality in the United States According to the Gross Domestic Product, also known as GDP, United States was measured the “largest” economy in the world (Mahoney 10/27/2015). However, all Americans do not share the high standard of living in the U.S. Levels of income and wealth inequality have always been high in the United States. While it is ideal for a democratic country like the United States to have political equality, the reality shows that this is not the case; as economic inequality ultimately causes political inequality under the current system of government. Income inequality has not only been prevalent, but has been polarizing further since the 1970s. Currently, twenty-percent of the population takes home 50% of the total income and the top 1% takes home 25% of the income and owns 40% of total wealth (Mahoney, 2015 October 27). While CEOs of the Fortune 100 makes over $14 million a year, an average worker makes $45,230 a year; this is a clear illustration of the income disparity in the United States. Further, it is worth mentioning that such trends are not necessary common; the United States has always had higher levels of income and wealth inequality when compared to other rich democracies (Mahoney, 2015 October 27). The average household income is currently stagnant, which suggest that the average household cannot easily grow economically in the U.S and cannot help close the income inequality gap. In the movie Inequality for All, the manager of Circuit...
Words: 1329 - Pages: 6
... It generally refers to a society which the income gap between individuals or groups and also the international wealth gap. The percentage of income to a population is often presented by income inequality. It’s also considered as the gap between the rich and others and has been obviously growing for recently years. There have measures for income inequality. It’s important to view this data sets and measures as it can show the differences of a country, especially the advantages and disadvantages. Income inequality should have a clearer data or picture to explain the differences and can be also obtained by using those measures. The “Gini Coefficient” can measure income inequality. Gini Coefficient is the way to measure the distribution of nation residents’ income. Corrado Gini (Italian statistician and sociologist) is the person who developed and published it. The among values of distribution will be measured by Gini coefficient such as income levels. If everyone has the same income, it will be shown as Zero (perfect equality) in the Gini coefficient. Conversely, if Gini coefficient shows one mean that only got one person have the income, as know as perfect inequality. In the United States, there has been growing obviously for income inequality and the gap between rich and others. According to the report of Gini coefficient, united States have the high income inequality and continuously growing. Thus, I will take United States as an example to analyze the causes of income inequality...
Words: 1589 - Pages: 7
...| The Wealth Divide Continues | American Government | | Charles Hatley | HCC Sienna | Fall Semester | The United States of America is supposed to be a nation where everyone is created equal. A nation where everyone is supposed to have an equal chance. But looking at the huge gap between the wealth divide of our nation and the many problems it creates you would think otherwise. The rich continue to get richer and the poor get poorer while the government makes it even harder for the middle and lower class to stay out of poverty. Lack of affordable public housing and also lack of middle income housing are a few of the problems. The Gap in the wealth divide along with these two problems makes life very difficult for middle class and lower class to survive during these hard economic times. “Affordable housing is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a median income. Although the term is often applied to rental housing that is within the financial means of those in the lower income ranges of a geographical area, the concept is applicable to both renters and purchasers in all income ranges.” (Wikipedia) In The United States and Canada the accepted guideline for being able to afford a house is a cost that does not go over 30% of a household’s gross income. The costs include taxes, insurance and utility costs...
Words: 1663 - Pages: 7
...Closing the Gap in Homeownership Rates: How Fannie Mae and Lender-Partners Can Close the Gap Sullivan University MGT 510 Executive Summary This proposal addresses the gap in homeownership rates between whites and minorities. According to the United States Census Bureau, 67.9 percent of the population in the United States are homeowners. However, while 71.8% of Whites are homeowners, only 47.3% of African Americans and 48.2% of Hispanics are homeowners. This large gap in homeownership rates can be contributed to discrimination by lenders and minorities’ misconceptions about the lending process. To overcome these issues, lenders need to eliminate discrimination and reach out to minorities. Ultimately, lenders who discriminate are going to hurt their own bottom lines since minorities represent a large market that has the high potential for growth. Introduction: Homeownership is the “American Dream” Housing has often been referred to as the #1 creator of wealth in the United States. It has been called, (1) the leading consumer product, (2) the leading consumer investment, and (3) a leading economic driver. Homeownership, in short, is the “American Dream.” It creates wealth. If you purchase a home today, with appreciation and through upkeep, it will be more valuable in the future. That appreciation provides homeowners with opportunities to create wealth. According...
Words: 1837 - Pages: 8
...Kevin December 11, 2007 Field Guide to the U.S. economy Chapter one from Field Guide to the U.S. Economy analyzes the distribution of wealth between the family and the structures of corporate power. The idea that the wealthy, usually become wealthier is stressed in this chapter. Most of the United States income is distributed to the wealthy; “The richest ten percent of all households own eighty percent of the financial wealth in America (1)”. Average families have most of their wealth invested in their homes. As for the wealthiest, most of their wealth is invested in the form of business equity, real estate, stocks, bonds, mutual funds, and trusts. This chapter also stresses that wealth does not only create a higher standard of living, but that wealth influences political outcomes. The economic power of the United States is held in large corporations with single corporate owners. Chapter two expands on the information given in chapter one and expands on welfare and education. The main point of the chapter is poverty hurts kids. I will be expanding on the ideas in the two chapters to show that the gap between the wealthy and poverty is extreme and how it effects households, welfare, and education. Section 1.1 concentrates on who owns how much in America, showing the difference between the worker and owner income. “The rich are different from you and me (3)” said F Scott Fitzgerald. The richest ten percent of U.S households own eighty percent of the countries financial...
Words: 2242 - Pages: 9
...Despite the 2016 United States Presidential election occurring in almost one year, it seems to be the only topic which the news media feels like discussing. The candidates have made themselves known, and with candidates such as Donald Trump, there is plenty to talk about. However, there are some candidates which the news media simply will not cover, whether it be because of their unpopularity, controversial viewpoints, or bias of sponsors. Senator Bernie Sanders is one of these such candidates, and being a self-declared Democratic socialist, he is a candidate whom the news media would rather ignore. The first Democratic Debate on October 13 (hosted by CNN), Hillary Clinton, being a previous candidate and well-known politician, was promptly declared to have “won” the debate by CNN, despite most focus groups declaring Sanders to be the winner. During the debate, Bernie Sanders made what many considered to be bold, revolutionary statements, such as his belief that college tuition should be nonexistent. Bernie Sanders is the best candidate for President of the United States for 2016 because he will lessen the wealth gap, strive for...
Words: 1148 - Pages: 5
...Deepsha Shrestha Prof. Ben Clapp Issues in Personal Finance 04/07/09 Very warm good morning to the President of the United States. I am very glad to put my view point on the major problem of the society, in front of you. Hope you will give a thought on it and support to remove the major problem of our society. Racism is the belief that a particular race is superior of inferior to another because of skin color, language, customs and place of birth. Racial discrimination has always been a major talk in the U.S. society, and it is an ongoing concern in today’s society. Race is still a powerful social idea that gives people different access to opportunities and resources. The problem of racial discrimination has been in existence for centuries and will exist if we together do not work with mutual understanding and co-operation; unless there is the feeling of global fraternity. I believe we are the ones to create this problem and it would be a mystery unless we work out together. I, myself am a victim of racism and I have friends who are victims of racism not only in their workplace but in their daily life. We are called upon as “Hey you” instead of our names, only because I am not white. I loose many opportunities in my life though I had the equal potentials as other whites. I am always judge by my color not by my talents. It is we ourselves who made this discrimination. So, we should work together to stop this discrimination. It’s been years that people got freedom from...
Words: 948 - Pages: 4
...Wealth and Power in the United States POL/443 Wealth and Power in the United States What is wealth? Generally speaking wealth if the value of everything a person or family owns, minus any debts, G. W. Domhoff (2015). Although many of us think of the division of wealth as an equal in the United States, the reality is completely different and shocking; to say the least. Because of this, there are three theories created; pluralism, elite theory, and state autonomy. Each of these theories where created to understand the structure of power in the United States. As we see each of their purpose, a few question comes to mind; who benefits? Who governs? And who wins? In 2013 wealth inequality in the United States was greater than in most developed countries other than Switzerland and Denmark, Weissmann, Jordan (2013). The top 1% (also known at the elites) of the American population owns 42.7% of the country’s total wealth. Meaning the next 19% of Americans owning 50.3%, and the bottom 80% owning 7%, Deborah L. Jacobs (2011). However, after the Great Recession (which started in 2007), the share of total wealth owned by the top 1% of the population grew from 34.6% to 37.1%, and that owned by the top 20% of Americans grew from 85% to 87.7%. The Great Recession also caused a drop of 36.1% in median household wealth but a drop only 11.1% for the top 1%, further widening the gap between the top 1% and the bottom 99%. According to the Institute for Policy Studies, in September...
Words: 1185 - Pages: 5
...greater now than it has been at anytime in the last century, and the gaps in wages, income, and wealth in America, are wider here than they are in any other developed economy. II. THESIS STATEMENT: Wealth inequality in the USA does not allow those living in poverty to climb out and join the middle class, and keeps most wealth, power, and privilege in the hands of a select few. (Transition History} BODY I. After the Stock Market Crash of 1929, the gap between the rich and the poor began to narrow. (Borrow, pg. 167) A. The current rise of inequality in America can be traced back to 1979. B. Wages still differed greatly between the upper- and working-classes. 1. Unequal educational opportunites 2. Inherited wealth means unequal distribution 3. Discrimination (Race, gender, sexuality) 1. According to the Pew Research Center, the top 7 percent of all U.S. households own 63 percent of all the wealth in the country. According the U.S. Census buruo are living in poverty. That is a brand new all-time record high. (Transition: How?) II. Owning a home, then equal pay for equal work, and then having a college degree are the three factors that can make the biggest difference in closing the wealth gap A. Working towards goals such as education and home ownership will help people living in poverty bridge the gap between the wealthy 1. Societies with greater income...
Words: 358 - Pages: 2
...Education’s Effect on the “Wage Gap” A hot-topic that continues to be a point of emphasis across not only the United States economy but the world economy as a whole is the ever-increasing gap between the upper-class and lower-class. The recent recession in the United States has intensified the subject seeing the top one percent of incomes in the country rise 20% in 2012 as opposed to some other lower-class incomes falling as much as 18% throughout that same timeframe. Other countries have seen similar issues between the two classes and the path toward extinction for the “middle-class.” In-order to combat this trend, some countries have instituted economic policy changes specifically around education. The following will explain how education and the wage gap are related, what the situation is currently in the United States, and what other countries are doing to combat the wage gap which the U.S. can learn from. In order to understand how education has an effect on the wage gap, it is first important to understand the labor market and how wages are determined. “The Marginal Productivity of Labor” is the additional output produced by the addition of one more labor worker holding all other inputs fixed. “The Law of Diminishing Marginal Productivity of Labor” says that the more workers there are (again, holding all things constant) the lower the total productivity per worker will be. This is comparable to having a factory with only one machine. If more...
Words: 3236 - Pages: 13
