How Does Income Inequality Cause Wealth Divides

Income inequality’s dictionary definition is an event in which income is distributed in an uneven manner amongst a population. Income inequality is a large problem in the United States. But the U.S. has the tools to fix this issue; it just needs to be addressed correctly. Currently an issue in the U.S. is the great wealth divide. A wealth divide is a barrier between the people seen as “poor” or less financially stable and the people seen as “rich” or those who have a better grasp on wealth and financial stability. Income inequality and wealth divides go hand in hand because the root cause of wealth divides is income inequality. Income inequality causes wealth divides because of many different factors such as overall wealth and financial stability …show more content…
But the root cause of wealth divides is income inequality. This is the case because wealth divides are essentially a divide between people with different financial stability (the “rich” and the “poor”). According to the dictionary income inequality is the dispersion of income in an uneven manner amongst the people. Income inequality creates wealth divides by making the economic market uneven amongst the people. According to the president of the United States, Barack Obama: “the combined trends of increased inequality and decreasing mobility pose a fundamental threat to the American Dream” (Barack Obama). Wealth divides have a very negative impact on the …show more content…
The list of solutions for issue of income inequality could go on for forever. There are tons of possible solutions for solving the great issue of income inequality. It’s just a matter of actually following through with solution proposals. The United Nations proposed solution to solve income inequality: “the international community has made significant strides towards lifting people out of poverty. The most vulnerable nations – the least developed countries, the landlocked developing countries and the small island developing states – continue to make inroads into poverty reduction. However, inequality still persists and large disparities remain in access to health and education services and other assets. Additionally, while income inequality between countries may have been reduced, inequality within countries has risen. There is growing consensus that economic growth is not sufficient to reduce poverty if it is not inclusive and if it does not involve the three dimensions of sustainable development – economic, social and environmental (United Nations). On the issue of income inequality the United Nations should do exactly what they proposed which is to essentially