Income Inequality: A Dividing Problem
Income inequality is a pressing issue for many economists, researchers, and politicians. The gap between the top 1% and the other 99% of Americans has increased for the past three decades (DeSilver; Cobb; Milanovic; Hatch, Ribgy; Jacobs, Dirlam; Cooper, Palumbo, Lutz). Income inequality is defined as the uneven distribution of income in the population, and the gap between the wealthy and everyone else (Priester, Mendelson).
In 2013, the top 1 percent of the population took home more than 20% of income earned (Saez, Piketty). Bill Gates and Warren Buffet alone account for the income of the bottom 40% of the United States (Freeland). The gap between the top 1% and the rest of the country is so large that if the United States had the same level of equality it did three decades ago then the top 1% would have had their annual household incomes decrease by over $800,000 today (Priester, Mendelson).
Income inequality financially hurts those who are not wealthy. It makes the country seem like an elitist country; where the wealthiest individuals are the ones calling the shots. It can also lead to corruption when large corporations or wealthy individuals will contribute to a political campaign for a nominee if in return the candidate’s account to their interests. If …show more content…
Dating back all the way to the 1200s, income inequality periodically rises and falls over the years and that for the past thirty years it has been on the rise. The determinants that influenced inequality to rise or fall, epidemics, war, and advancements in technology. The United States today, is experiencing war and advancements in technology which could be influential on the income inequality gap