Inequality: Friend or Foe? Does income inequality exist in America? We can turn on our television and watch shows like “The Real Housewives” or “MTV Cribs” and see very wealthy people living lives full of luxury with expensive cars and million dollar houses. Meanwhile, a walk down a street in New York City will reveal many Americans who live on the street and whose main source of income is what they get from the generosity of others.
In their article The Upside of Income Inequality, Gary Becker and Kevin Murphy describe income inequality as something that raises the standard of living for both the rich and the poor by accelerating economic growth. The authors state that “In the United States, the rise in inequality accompanied a rise in the …show more content…
For example, Krugman’s article shows a table that explains how parental economic status affected a child’s likeliness to finish college. The results conclude that no matter their intelligence level, children whose family status was in the top fourth were more likely to finish college than children whose family status was in the bottom fourth. Krugman goes on to explain how income inequality not only brings about social inequality, but how the negative consequences from such inequalities impact the average American family today. Krugman also says that the average household is taking on more debt than they can handle in the form of house mortgage (563-564). He states that the reason for such actions is the desire for families to send their children to good schools so they can “give their children a chance in an increasingly unequal society” (Krugman565). Krugman’s stance on income inequality is simple, and his solution is even simpler. He believes that income inequality is the main driver of social inequality, explained on page 567 when he states, “Because American children from low- income families are often uninsured, they’re more likely to have health problems that derail their life chances.” His solution? Create a higher income tax on America’s richest 1% and use that revenue to create a stronger financial …show more content…
By saying that the taxes on America’s high incomes have dropped over the years, he draws a direct line to the increase in income inequality. When higher incomes were taxed more than lower incomes, the gap between the two was much less and Americans had a more level playing field with similar opportunities. However, one could say that the increase in income inequality has come from more Americans seeking a higher education, which is a good thing, but the fact is that more and more Americans are being punished when it comes to these kinds of opportunities. Also, while more women and minority groups have attended college, the dropout rate for these groups has remained constant. Why are so many college students dropping out if they know how important a college degree is? In my personal education, I have learned that the reason for this dropout rate is financial
In their article The Upside of Income Inequality, Gary Becker and Kevin Murphy describe income inequality as something that raises the standard of living for both the rich and the poor by accelerating economic growth. The authors state that “In the United States, the rise in inequality accompanied a rise in the …show more content…
For example, Krugman’s article shows a table that explains how parental economic status affected a child’s likeliness to finish college. The results conclude that no matter their intelligence level, children whose family status was in the top fourth were more likely to finish college than children whose family status was in the bottom fourth. Krugman goes on to explain how income inequality not only brings about social inequality, but how the negative consequences from such inequalities impact the average American family today. Krugman also says that the average household is taking on more debt than they can handle in the form of house mortgage (563-564). He states that the reason for such actions is the desire for families to send their children to good schools so they can “give their children a chance in an increasingly unequal society” (Krugman565). Krugman’s stance on income inequality is simple, and his solution is even simpler. He believes that income inequality is the main driver of social inequality, explained on page 567 when he states, “Because American children from low- income families are often uninsured, they’re more likely to have health problems that derail their life chances.” His solution? Create a higher income tax on America’s richest 1% and use that revenue to create a stronger financial …show more content…
By saying that the taxes on America’s high incomes have dropped over the years, he draws a direct line to the increase in income inequality. When higher incomes were taxed more than lower incomes, the gap between the two was much less and Americans had a more level playing field with similar opportunities. However, one could say that the increase in income inequality has come from more Americans seeking a higher education, which is a good thing, but the fact is that more and more Americans are being punished when it comes to these kinds of opportunities. Also, while more women and minority groups have attended college, the dropout rate for these groups has remained constant. Why are so many college students dropping out if they know how important a college degree is? In my personal education, I have learned that the reason for this dropout rate is financial