At the root of Democratic presidential candidate Bernie Sanders’ highly touted - and shouted - policies, was the issue of inequality in America. It’s no surprise that Senator Sanders saw great success on their messages; a 2015 OECD report found that the top 10% of Americans hold 76% of the nation’s wealth, a figure far higher its peer OECD countries. In addition to the economic consequences of wealth inequality, it poses a serious danger to younger generations such as mine. Inequality brings Americans further away from the American Dream, suggesting that mobility isn’t in fact possible. If this continues, desire for innovation and growth won’t exist, after all, what’s the point? Fearful of wealth inequality dangerous repercussions, I tackled
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A FINRA study found that the average American scored a 3.2 of out 6 on a basic financial literacy test. There was a substantial gap between the results of high-earners and low-earners. Those making over $75,000 averaged 3.8 correct answers, while those making less than $25,000 averaged 2.5 correct answers. Earners in the 25-75 thousand range averaged 3.1 correct answers. Financial literacy is important because it allows one to take the money they’ve earned and grow it. When the upper income brackets do this and the lower income brackets do not, wealth inequality widens, making the data …show more content…
A 2013 National Bureau of Economic Research study asserts that “financial literacy plays a key role in explaining inequality.” This same study argues that “financial knowledge accumulation has the potential to account for a large proportion of wealth inequality.” Furthermore, a 2012 study published in The American Economic Review found that “by investing in financial literacy, individuals, firms, and governments can enhance household wealth.” Why? Because a financial literacy education has become a niche product in education. My school, located in an well-off Boston suburb, offers personal finance. Go a few miles east or west, and no such course exists. Those in well-off areas with access to this education know how to maintain and growth their wealth, while everyone else doesn’t. The wealth gap grows. Financial literacy won’t solve the entire problem, nor come close, but it offers a base upon which we can grow. Before we make substantial reform, a substantial portion of the population must be financially literate for these reforms to
A FINRA study found that the average American scored a 3.2 of out 6 on a basic financial literacy test. There was a substantial gap between the results of high-earners and low-earners. Those making over $75,000 averaged 3.8 correct answers, while those making less than $25,000 averaged 2.5 correct answers. Earners in the 25-75 thousand range averaged 3.1 correct answers. Financial literacy is important because it allows one to take the money they’ve earned and grow it. When the upper income brackets do this and the lower income brackets do not, wealth inequality widens, making the data …show more content…
A 2013 National Bureau of Economic Research study asserts that “financial literacy plays a key role in explaining inequality.” This same study argues that “financial knowledge accumulation has the potential to account for a large proportion of wealth inequality.” Furthermore, a 2012 study published in The American Economic Review found that “by investing in financial literacy, individuals, firms, and governments can enhance household wealth.” Why? Because a financial literacy education has become a niche product in education. My school, located in an well-off Boston suburb, offers personal finance. Go a few miles east or west, and no such course exists. Those in well-off areas with access to this education know how to maintain and growth their wealth, while everyone else doesn’t. The wealth gap grows. Financial literacy won’t solve the entire problem, nor come close, but it offers a base upon which we can grow. Before we make substantial reform, a substantial portion of the population must be financially literate for these reforms to