United States And China 's Capital Concentration And Social Housing Benefits

1593 Words Dec 1st, 2016 7 Pages
Income inequality has become an area of focus for many industrialized nations around the world. Over the last decade, the awareness regarding this income gap has intensified, leading to the broader question of what causes this disparity in income between the top ten percent of society and the bottom ninety percent. Two nations; the United States and China, have approached the issue of income inequality in different ways. The two most important factors that influence the income gap in these two nations are capital concentration and social housing benefits. Therefore, by examining how the United States and China handle capital concentration and social housing benefits will provide a better understanding into why China has been able to curb the income gap crisis, and conversely why the United States has seen its income gap widen.
Before examining the influences that effect the income gap, it is important to review key statistics that can provide an insight into what exactly the income gap of the United States and China looks like. Per the World Wealth and Income Database or WID, a website created by a committee of five leading economists, the United States and its service economy has seen the middle classes income stagnate over the last forty-one years. The rich have certainly gotten richer, as evidenced by the WID statistic showing the top ten percent average income growing from $149,601 in 1974 to $273,843 in 2015. The same is not true for the bottom ninety percent, who have…

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