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The Effects of Wealth Inequality in the U.S.

In: Social Issues

Submitted By anthonygio95
Words 1470
Pages 6
Anthony Giovenco
Political Science
Inequality Paper
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. The top one percent of the nation earns almost twenty five percent of the pre-tax income versus fewer than 10 percent from 1950 to 1975. The wealthiest one percent of households increased their net income by nearly 275 percent from the years 1980 to 2007. This increase trumps the forty percent gain for low to middle class Americans. Corporations are often to blame for putting profits ahead of

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