Income Inequality Essay

This Inequality is seen as a truly critical Issue by many, even being called the essential problem for the next generation by current president Obama, however the inequality gap between the rich and poor has nonetheless grown out proportion, further exasperating the situation. While our nation truly is suffering from the outrageous gap between the rich and the poor, the goal should be attaining equal opportunities for all Americans, not equal results, because if one individual Is truly a harder worker, then they should In fact be wealthier than those ho don’t put forth as much effort.

Despite constant efforts from our nation’s government to level the playing field, the income inequality gap has only expanded over time, becoming a greater burden on our once equal opportunity based society, thus it’s truly the quintessential issue for our up and coming generation to address. From it’s very beginnings, the United States had always appealed to the world as a nation that provided all of It’s citizens an equal shot at success given they put forth the effort required, however It’s truly becoming Increasingly apparent that the fabled

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American Dream truly Is but a dream, as fewer and fewer hard working Americans are able to attain success. Recently, a term known as income inequality has been thrown around in the debate between the rich and the poor. Income inequality is the unfair and ever expanding disparity between the nation’s highest-income households, and the lowest-income households. Although it’s impossible to establish 100% equality, due to it being unfair to give everyone the same exact Income even though certain Individuals work harder than others, thus It should be our nation’s AOL to at least provide Americans with an equal opportunity at becoming wealthy.

However, with our nation’s income inequality gap spiraling out of control, the rich are becoming richer, while the poor are becoming poorer, resulting in less opportunities for the common American to rise to the top. As of 2007, our nation’s wealthiest 1% owns 34. 6% of the wealth, the top 10% owns 73. 1% of the wealth, while the lower 80% owns a mere 15. 1% [1]. Evidently, our nation’s wealthiest individuals have an Insane amount of wealth compared to the large ma]orally of the nation, resulting In what Is now as income inequality.

Income inequality has truly plagued our nation from it’s origins, as there were many dirt-poor Americans, and a select few wealthy individuals. With the establishment of the industrial era in the sass’s, certain entrepreneurs, such as John D. Rockefeller, J. P Morgan, and Andrew Carnegie were able to capitalize on the nation’s economic growth, becoming unbelievably wealthy, even going on to become known as robber-barons. Soon our nation’s government starving, while a select few had billions. Thus, the nation’s first graduated income tax as implemented in 1913, decreasing the disparity between the fortunate and the not-so-fortunate.

This graduated income tax would go on to lower the top 10%g’s income from nearly 50% of the nation’s income in 1913 to around 30% of the nation’s income by the end of WI [1]. While the nation’s economy did grow simultaneously with returns on capital investment following the conclusion of WI, during the ass’s economic growth slowed down while returns on capital investment would continue to grow. This meant that the nation’s richest are becoming exponentially wealthier from he returns on their capital investments, while the general public wasn’t experiencing overall economic growth resulting in a widening gap between the rich and poor.

Income inequality has continued to spiral out of control following the recent recession, not so much because the rich as getting that much richer, but because the nation’s less fortunate are becoming increasingly poor. More specifically, the nation’s lower-income households bore the brunt of the devastating economic recession as many became unemployed and were further burdened by debt, while the nation’s richest were able to hold onto their holdings.

Clearly, it is the less fortunate who are unfairly decimated by economic downturns as the rich are able to immorally mitigate the suffering brought on by the recession over to the UN-skilled workers by firing large amounts of them. While income inequality exists today Just as it has existed previously, it is now even larger, with no sign of the gap decreasing, rather it is most likely that it will continue grow as the nation’s richest become wealthier from their investments and pass their money along to a select few who would now inherit the nation’s wealth rather than work for it.

Overall, income inequality has remained an ever growing, unsolved issue that is plaguing our nation. The issue of income inequality is of tremendous importance because it has several economic and social implications. Economically, the disparity between the rich and poor results in many of nation’s less fortunate having an ever decreasing amount of money, leading to lower living standards in our nation.

Furthermore, as the wealthy become ever increasingly richer, they gain more and more influence over the less fortunate as well. Thus, the wealthy have a huge advantage over the typical American, using their none and influence to lower the likelihood of the average American actually achieving success. Now a days, fewer and fewer Americans are truly able to achieve the American Dream, this is due the income inequality gap putting them at a severe disadvantage.

Since many Americans simply do not have the means to pay for an expensive college education, they have no other option but to settle for menial, dead- end, minimum Jobs. In the years after WI, the average American wage had gone up so much so that many could in fact achieve their goals of owning a home and successfully settling down. However, with the increase in the income gap between the rich and the poor, they no longer stand a chance a against the select few who are now born into success.

Moreover, it is unfair because the average CEO makes 380 times that of the average workers salary, even though they may not be working that many times as hard [2]. Furthermore, the large majority of America that has so little income is the driving force in the economy, they’re the truly hard working people that produce our nation’s goods, it is unjust that only a few select individuals reap all the f money, they spend less, and thus income inequality inhibits economic growth as the nation’s aggregate demand drops, and GAP decreases.

Also, with the rich gaining so much wealth and power over the general population, they could unfairly use their influence to sway the nation’s government in their favor and even go as far as seeing the average American worker as expendable, as shown during the 07 recession, during which large amounts of workers were laid off. As a result of the income inequality gap being blown out of proportion, the nation’s general public has begun o take notice of the unfair issue, sparking the “Occupy” movement, which spread the message that the income inequality gap terrorizing our nation is an evil that must be appropriately dealt with.

It should truly be our nation’s goal to at least be able to provide all individuals with the opportunity at success, which has practically gone away due to the overpowering disparity brought on by the income equality gap. Income equality is hindering concept for our society and economy as it limits success to the select few, while keeping the average American from his dream of one day asking it big. Income inequality has truly become a key issue in our nation, and so it has become our government’s task to address the predicament.

Notably, our executive branch has taken action under President Beam’s administration to establish a new minimum wage that will hopefully decrease inequality, aiding the less fortunate. By raising the minimum wage, workers will have more money to spend, boosting the nation’s economy. Furthermore, recently Congress has been attempting to extend unemployment benefits to more than 2 million American who lost the benefits last December [3]. By granting those who are unemployed benefits, our government is greatly helping the nation’s poorest, many of whom would starve without government aid.

In addition, the Judicial branch also plays a key role in lowering inequality as shown in the 2012 Announcement v. Federal Election Commission case, which decided that the rule limiting the wealthy from donating too much money to campaigns was constitutional. By doing so the Supreme Court effectively made sure that the nation’s wealthiest couldn’t have too much influence over political campaigns because they’re limited on the amount they can donate, giving Americans f any income the same influence in politics.

Nonetheless, despite all of the action being taken to limit the nation’s growing income inequality issue, even President Obama himself has asserted that income inequality is still the key issue. I believe that the nation’s government could in fact take further steps in the battle against income inequality, by proving the nation’s general population a greater chance at success. Currently, the nation’s poorest are truly suffering as many of them have no chance of ever achieving the American Dream due to their lack of education and the insurmountable odds their now faced with.

Thus, by making education, specifically a college education, more widely available, Americans will now at least have a chance of one day becoming accomplished. Furthermore, our government has to make a complete overhaul in our nation’s currently broken and inefficient income tax. By revising the income tax system, our government will be able to effectively take more money from the wealthy which can be used to give back to the general American public. Not only that but by perhaps providing our nation’s poorer individuals with incentive based tax credits.

Through the process of granting many of the less success. All in all, the issue of income inequality has plagued our nation for decades, and so it’s truly become an unavoidable issue. Unlike previously, our nation’s widening income inequality gap does not appear to be slowing down, rather it is constantly increasing. This infinitely expanding gap puts a heavy toll on the nation’s less fortunate who find themselves seemingly against insurmountable odds. However, with effective action being taken by the legislative, executive, and Judicial ranches, the issue of income inequality can finally be tackled.