Wealth Gap in the US Essay
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. Low-wage workers don’t receive any health insurance, pension plans or sick days from their employers, so that they don’t have any hope of retiring and they can’t get sick in order to continue their jobs.
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. Pyroll is the biggest budget line item in most of the companies. 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?