Income Gap in America
Today, America is considered one of the richest countries in the world, however when our economy is examined closer, the reality is that much of our nation's wealth is controlled by a tiny handful of individuals, leaving the bottom 99 percent to fight for the remaining 78 percent of the wealth. Currently, The U.S. ranks around the 30th percentile in income inequality globally, meaning 70% of countries have a more equal income distribution. Since the 1970’s, the issue of income disparity has become a very large social, economic, and moral issue. Over the past four decades, the income of America’s top one percent has tripled, while the average income increased by less than 25%. To put into numbers, the super rich .01% of America take home a whopping 6% of the national income, or around $23 million a year, while the bottom 90 percent of America earns an average of $30,000 a year. As a result of the growing income gap, more and more Americans are beginning to identify as lower class, suffering both economically and socially. The biggest downshift in middle-class identification is found in people with less than a college education, suggesting that less middle-class and upper-class jobs are available for those without college educations. The problem with college is the spiraling costs is the largest aspect of higher education that students are concerned about. For the average student, the tuition for a public four year university is approximately $9,500 a year. While some are able to pay for this, or take out student loans, others cannot scrape together the money, and decide that higher education is not worth the cost. As a result, many Americans have fallen into the lower class or the “working poor”. The lower class are defined as “those at the bottom of the socioeconomic hierarchy who have low education, low income, and low status jobs.” (Boundless, 2015). According to PSID data, more than half of Americans will experience a year of poverty by the age of 60. This social hierarchy comes as no surprise as the United States, a country with roots in slavery, has …show more content…
Many economists would agree that income inequality is a direct consequence of the free market America has adopted. Ideally, an individual is able to control their economic situation based on the amount of work they put forth. “People work hard to avoid poverty and even harder to get rich.” (Gordon, 2015) The incentive of economic gain is what drives people in the workforce, and keeps them there. This argument holds only as long as hard work is rewarded in the short term, with fair wages and in the long term, with economic mobility. In the united states, this ideal is far from the reality …show more content…
In places lacking economic stability, many people are compelled to commit small crimes such as theft in order to support themselves. According to studies, “low levels of trust in unequal countries may provide (a) link which leads from higher inequality to high murder rates. Such societies may lack the social capacity to prevent violence and create safe communities. Experiences of inferiority may make someone less inclined to behave in a socially desirable way.” (The Equality Trust, 2016). Trends like this show the relationship between increased aggressive behaviour, high crime rates, and wealth. Additionally, drug activity in impoverished areas is not
Today, America is considered one of the richest countries in the world, however when our economy is examined closer, the reality is that much of our nation's wealth is controlled by a tiny handful of individuals, leaving the bottom 99 percent to fight for the remaining 78 percent of the wealth. Currently, The U.S. ranks around the 30th percentile in income inequality globally, meaning 70% of countries have a more equal income distribution. Since the 1970’s, the issue of income disparity has become a very large social, economic, and moral issue. Over the past four decades, the income of America’s top one percent has tripled, while the average income increased by less than 25%. To put into numbers, the super rich .01% of America take home a whopping 6% of the national income, or around $23 million a year, while the bottom 90 percent of America earns an average of $30,000 a year. As a result of the growing income gap, more and more Americans are beginning to identify as lower class, suffering both economically and socially. The biggest downshift in middle-class identification is found in people with less than a college education, suggesting that less middle-class and upper-class jobs are available for those without college educations. The problem with college is the spiraling costs is the largest aspect of higher education that students are concerned about. For the average student, the tuition for a public four year university is approximately $9,500 a year. While some are able to pay for this, or take out student loans, others cannot scrape together the money, and decide that higher education is not worth the cost. As a result, many Americans have fallen into the lower class or the “working poor”. The lower class are defined as “those at the bottom of the socioeconomic hierarchy who have low education, low income, and low status jobs.” (Boundless, 2015). According to PSID data, more than half of Americans will experience a year of poverty by the age of 60. This social hierarchy comes as no surprise as the United States, a country with roots in slavery, has …show more content…
Many economists would agree that income inequality is a direct consequence of the free market America has adopted. Ideally, an individual is able to control their economic situation based on the amount of work they put forth. “People work hard to avoid poverty and even harder to get rich.” (Gordon, 2015) The incentive of economic gain is what drives people in the workforce, and keeps them there. This argument holds only as long as hard work is rewarded in the short term, with fair wages and in the long term, with economic mobility. In the united states, this ideal is far from the reality …show more content…
In places lacking economic stability, many people are compelled to commit small crimes such as theft in order to support themselves. According to studies, “low levels of trust in unequal countries may provide (a) link which leads from higher inequality to high murder rates. Such societies may lack the social capacity to prevent violence and create safe communities. Experiences of inferiority may make someone less inclined to behave in a socially desirable way.” (The Equality Trust, 2016). Trends like this show the relationship between increased aggressive behaviour, high crime rates, and wealth. Additionally, drug activity in impoverished areas is not