Income Inequality In The United States

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In a capitalistic based economy such as the United States, it creates incomes that are small and large. Having an unequal amount of large or low incomes is called income inequality. Income inequality has become a major problem in the United States, increasing 24% from 1968 to 2012” (Cochran). The gap between the rich and the poor is growing at an ever increasing rate. In the United States the gap is measured by relative poverty, or “being below one-half the nations income” (Cochran). In most recent figures, “17.3 of the United States Population falls below 50 percent of the median income” (Cochran). This figure is staggering considering that the United States has the largest GDP in the world. There are many people who feel this number is fine …show more content…
Welfare programs have been around since the Great Society Programs of the 1950s and 1960s. Since the inception of these programs they have benefited millions of people. The efforts of the Welfare Reform Acts such as TANF and PRWORA have successfully provided assistance to support mainly children and helped people become self-sufficiency rather than reliance. However, there can be more done to improve to actually lift people out of poverty instead of staying. The government should expand social security and make sure it can last for future generations. Programs such as SNAP need to be regulated, in that qualifying means to be drug tested and receipts sent in for auditing purchases. In regards to qualifying for social welfare, the “Current Population Survey (CPS) derives the official poverty rate by comparing incomes to the absolute poverty that was calculated back in the 1955 consumption patterns” (Cochran). This rate is absurd, when people apply for benefits the system “counts only cash income” (Cochran). In many situations a family may not qualify for benefits through income, but qualifies after deductions such as medical and healthcare costs, taxes and other work expenses. Too many are dependent on the government funding and decide to stay there. There should be a guaranteed standard of living to encourage successfulness. Welfare in the United States has not provided a guaranteed standard of life “poverty rates in the US remain much higher than any other nation, and barely provide any kind of decent living conditions” (Cochran). The programs in place have not lifted people out of poverty fast enough. In contrast “the European welfare state is that it guarantees a generous minimum standard of life through social services, education, public assistance, social insurance and employment programs to all citizens” (Cochran). In many European

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