The Truth Revealed About Inequality Of Wealth In America

In today’s industrialist economy, where business in general and economic transactions are centred on self-interest, some people have a natural tendency to make much more than others. That is the basis of the American dream, where if people worked hard, they could make money related or proportional to their effort.

But what happens if this natural occurrence produces a disproportional distribution of wealth within a society? The resulting matter becomes income or wealth inequality. The economic inequality in America is developing a new war on poverty. The majority of the population owns a small fraction of what the rich own, and a small portion of the population owns the majority of the wealth. This issue can lead to social tension. Wealth inequality also affects our physical and mental well-being and doesn’t only harm us fiscally, so it is essential to identify the right ways to control income distribution among people. The wealth gap in America is basically the unequal distribution of assets between the citizens of the United States. Wealth contains the value of a home, personal valuables, investments, automobiles, savings and businesses.

Inequality of wealth has increased and decreased in America throughout history, but the widening gap has now become a serious issue in recent years. Most of the causes of the wealth inequality in America can be traced to an underlying shift in the global economy. Incomes of emerging markets are increasing. In the global marketplace, countries like India, Brazil, and China are more dominant in competition. That’s because their work services are becoming more skilled, and their leaders are becoming more refined in controlling their economies. So that the wealth is moving from America and other developed countries to them. Low-paid service jobs have been increased. During the 1990s, companies went public to invest in growth. To please stockholders, managers must now generate ever-large profits. It also means hiring more temporary employees and contracts. Many of the immigrants came illegally into the country and filled more low-wage service positions, and because of the demand for higher wages, they have low bargaining power. All of these factors play an important role in the rise of inequality in wealth.

There are many other factors that can be recognized as sources of the wealth gap, but the most important question remains: how can it be fixed? As the wealth gap is so wide, struggling with the income gap is a tricky business; it would need one straightforward policy or more than two presidential terms to fix it. Economic growth and income inequality have a positive association, meaning that if income inequality is high, then the economy cannot maximize its growth potential. There are two ways to approach this issue: one is to tackle the income gap directly to promote economic expansion, and two is from the business side and the economy to increase economic growth and hopefully stabilize wealth inequality. The second option is not guaranteed to fix and could induce more problems, so the only sure fix would be to close the income gap directly to promote economic well-being.

The problem of wealth inequality has been common for years and has been viral throughout the country, but political leaders haven’t taken any steps in years. That’s why the situation is getting worse day by day. Leaders talk about equality in speeches but don’t take any action. Political leaders should take many steps in order to address the wealth inequality, i.e. apply monetary and fiscal policies aggressively to attain full employment, support apprenticeships, sectorial training, and earn-while-you-learn programs to raise wages to reduce poverty, strengthen and maintain the net programs like Medicaid, EITC and SNAP, provide better financial market. Taking some action somehow decreases inequality.