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The Truth Revealed About Inequality of Wealth in America

In today’s industrialist economy, where business in general and economics transactions is centered on self-interest, some people have a natural tendency to make much more than others. That is the basic for the American dream, where if the people worked hard could make money related or proportional to their effort. But, what happens if this natural occurrence produce disproportional in its distribution of wealth within a society? The resulting matter becomes income or wealth inequality. The economics inequality in America developing a new war on poverty. Where majority of the population owns the small fraction of what the rich own and small portion of the population own the majority of the wealth. This issue can leads a social tension. Wealth inequality also affects our physical and mental wellbeing, doesn’t only harms us fiscally; so, it is very essential to identify the right ways to control income distribution among people. Wealth gap in the America is basically the distribution of the assets between the citizens of the United States unequally. Wealth contains the value of home, personal valuable, investments, automobiles, savings and businesses.

Inequality of wealth has been increased and decreased in the America throughout the history, but the widening gap has now become a serious issue from the recent years. Most of the causes of the wealth inequality of America can be traced to an underlying shift in the global economy. Incomes of emerging markets are increasing. In 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 1990’s, to invest in growth, companies went public. To please stockholders, managers must now generate ever-large profits. It also means that hiring more temporary employees and contract. Many of the immigrants came illegally in the country and fill more low-wages service positions and for the demand of higher wages they have low bargaining power. All of these factors plays an important role in the arrival of the inequality of 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 so struggling with e income gap is tricky business, it would need one straight forward 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 economy cannot maximize its growth potential, to approach this issue there are two ways, one being to tackle the income gap straight to promote economic expansion and two being from the business side and economy to increase economic growth and hopefully stabilize wealth inequality. The second option is not guarantee to fix and could induce more problems so that the only sure fix would be to close the income gap directly to promote economic wellbeing.

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



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