wealth inequality in america Essay

1544 Words Mar 24th, 2015 7 Pages
Trevyn Maruyama
Suzuki 6
Closing the Income Gap
In today’s capitalist economy, where economic transactions and business in general is centered on self-interest, there is a natural tendency for some people to make more than others. That is the basis for the “American Dream,” where people, if they worked hard, could make money proportional to their effort. However, what happens when this natural occurrence grows disproportional in its allocation of wealth within a society? The resulting issue becomes income inequality. Where a small portion of the population, own the majority of the wealth and the majority of the population own only a fraction of what the rich own. This prominent issue has always been the subject of social tension
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By utilizing the first option, the government could raise taxes on imported goods thus decreasing the demand for said goods and increasing demand for domestic businesses which would lead to an increase in revenue for domestic businesses and a larger marginal revenue product which would either enact an increase in wage or a hiring of more workers giving more money to the average worker in general. The government could also promote exportation while contracting American based companies’ outsourcing thus having the same effect on domestic business growth. This would be a way of stimulating the domestic economy without increasing government spending by reducing outsourcing and expanding business in America. In general, the first option would be to stimulate in-country economic activity to make US citizens better off. Of course, the government could also sabotage (discretely) foreign business to make way for American expansion. The second option would be for the government to improve on existing and create new programs that would promote American economic growth. Programs such as education and healthcare would alleviate some monetary pressure on citizens and open up equal opportunities for everyone. Education specifically could be expanded upon by tackling the college bubble to reduce tuition and give everyone equal opportunity to a college education. By doing so,

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