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 basis of the American dream, where if people worked hard 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. Where 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 a 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. Low-wage workers don’t receive any health insurance, pension plans or sick days from their employers, so they don’t have any hope of retiring, and they can’t get sick in order to continue their jobs.
The wealth gap in America is basically the distribution of assets between the citizens of the United States unequally. 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 1990’s, to invest in growth, companies went public. To please stockholders, managers must now generate ever-large profits. Payroll is the biggest budget line item in most of the companies. 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 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?
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