Income and Wealth Inequality
It is without a doubt that income and wealth inequality is the largest corrosive force toward a decent economy in the United States. The effect of the rich getting dramastically richer while the poor have lost what little they had has lead to some economists labeling the last 20 years as the “Age of Greed.” Income & wealth inequality in America has placed many people below the poverty line and squeezed middle class families; the implementation of a living wage, a higher tax rate on the rich, as well as the formation of impartial community institutions, will create a fair economy.
The Age of Greed has been brought on by what Social Trends and Indicators USA calls "Trickle down" theories, that took hold and were …show more content…
“Trickle down” policies were implemented around the 1980s and their effects had set in, because later in 2000 the same records were taking again. They showed in 2000 the richest 5% of Americans earned $250,146 an 100% increasing from what they earned 33 years prior. As for the lowest 20% of Americans, they saw their incomes increase only 42% to a total of $10,190, which is below the federal poverty line (People). More recent studies have been done on income inequality and have found it shows no signs of decreasing. Emmanuel Saez and Gabriel Zucman, found that the richest 1% of americans earn 21.2% of all aggregate income in the United States as of 2015 (Inequality). Whereas the top 1% of income earners had only 8.9% of total national income at their lowest in 1967, that would be a 12.3% increase in 48 years (Inequality). The effects of these growing inequalities on the working class are endless. The brutal effects of a lack of steady income comparative can lead to lowered life expectancy, lack of quality education, and lowered job opportunities. The difference between the top 1% richest income earners life …show more content…
Generally speaking the richest 1% have done extremely well in accumulating wealth in this new Age of Greed. With the richest .01% americans controlling 10% of all the nations wealth, the top 1% owning 43% of all wealth in the USA (Inequality). Also while the poorest 50% of americans have a total combined wealth of $1 trillion, the richest 1% have a total wealth of $51 trillion (inequality). These mass wealth accumulations to the top have left the poorest americans out to dry, owning little in wealth. The inequality between affluent americans and the less fortunate has expanded to such great lengths that currently the net worth of the bottom 60% of US citizens have decreased. While the richest 20% of americans have collected a hefty $61,379 increase in their networth from 2000-2011, increasing from $569,375 to $630,754 (Inequality). The main contributors to these drastic differences in wealth is the ownership of company equity and a cycle of consumer debt. The richest 10% are in ownership of 91% of all stocks and mutual funds, while the bottom 90% of americans only own 9% of trade US companies stocks (Inequality). This massive gap of control of publically traded companies causes the problem that low paid workers have no say in how the company they work at runs. This creates another circle of the wealthy amassing more wealth, by controlling the company and distributing wages that are far more
It is without a doubt that income and wealth inequality is the largest corrosive force toward a decent economy in the United States. The effect of the rich getting dramastically richer while the poor have lost what little they had has lead to some economists labeling the last 20 years as the “Age of Greed.” Income & wealth inequality in America has placed many people below the poverty line and squeezed middle class families; the implementation of a living wage, a higher tax rate on the rich, as well as the formation of impartial community institutions, will create a fair economy.
The Age of Greed has been brought on by what Social Trends and Indicators USA calls "Trickle down" theories, that took hold and were …show more content…
“Trickle down” policies were implemented around the 1980s and their effects had set in, because later in 2000 the same records were taking again. They showed in 2000 the richest 5% of Americans earned $250,146 an 100% increasing from what they earned 33 years prior. As for the lowest 20% of Americans, they saw their incomes increase only 42% to a total of $10,190, which is below the federal poverty line (People). More recent studies have been done on income inequality and have found it shows no signs of decreasing. Emmanuel Saez and Gabriel Zucman, found that the richest 1% of americans earn 21.2% of all aggregate income in the United States as of 2015 (Inequality). Whereas the top 1% of income earners had only 8.9% of total national income at their lowest in 1967, that would be a 12.3% increase in 48 years (Inequality). The effects of these growing inequalities on the working class are endless. The brutal effects of a lack of steady income comparative can lead to lowered life expectancy, lack of quality education, and lowered job opportunities. The difference between the top 1% richest income earners life …show more content…
Generally speaking the richest 1% have done extremely well in accumulating wealth in this new Age of Greed. With the richest .01% americans controlling 10% of all the nations wealth, the top 1% owning 43% of all wealth in the USA (Inequality). Also while the poorest 50% of americans have a total combined wealth of $1 trillion, the richest 1% have a total wealth of $51 trillion (inequality). These mass wealth accumulations to the top have left the poorest americans out to dry, owning little in wealth. The inequality between affluent americans and the less fortunate has expanded to such great lengths that currently the net worth of the bottom 60% of US citizens have decreased. While the richest 20% of americans have collected a hefty $61,379 increase in their networth from 2000-2011, increasing from $569,375 to $630,754 (Inequality). The main contributors to these drastic differences in wealth is the ownership of company equity and a cycle of consumer debt. The richest 10% are in ownership of 91% of all stocks and mutual funds, while the bottom 90% of americans only own 9% of trade US companies stocks (Inequality). This massive gap of control of publically traded companies causes the problem that low paid workers have no say in how the company they work at runs. This creates another circle of the wealthy amassing more wealth, by controlling the company and distributing wages that are far more