The issue of income inequality has been stealthily haunting the United States of America for quite some time already. From the late nineteen seventies up until today, income inequality is an issue that is recurring. Now if one would want to know more about the income gap in America, here are some of the facts and arguments.
Now before discussing about this issue, it is very crucial to first have a clear understanding of the income gap. Now this gap is known as the inequality of the wealth distribution among the people that are in the country. Now when one would discuss about this issue, he would be looking at how much each class would be getting.
Now one would probably be more than familiar with the saying that the rich are getting richer and the poor are getting poorer. Now this is actually happening in America right now as majority of the wealth of the country is actually being taken by the rich. The middle class will also get a share but a low one, and the poor will be left with nothing.
Now the OECD was able to do a study on this. In this study, they surveyed the income generated by eighteen different countries between 1975 to the year 2007 and how these countries distributed the money to their citizens. Now what they found out was that in the US, the majority of the wealth generated in the country were actually all hogged by the rich.
In order to know why this is the case, one has to take a look at the active US market. Now it is common knowledge that the market of this country is a totally free market as it is a democratic country. This means that the wealth that is being generated by the people is not really monitored as the government would have little involvement with the market.
Now the million dollar question right now is that is this phenomenon good for the economy or bad for the economy. Now a lot of people would argue that it is in fact healthy for the economy because the rich people can make the country wealthy which means that they can contribute more to the economy. When that happens, then the country will be able to prosper better because of bigger taxes.
Others believe this gap is very unhealthy because the more the unemployment rate would be going up, the less people with spending power. Now with the power all being squeezed at the top, these economists believe that the economy of the US will suffocate itself to death. This is simply because it will not be utilizing all of its people and therefore not be fully productive.
Now by taking a look at some of the issues that would stem out from this one issue, it can be seen how this problem would affect the country. Now there are still those who believe that being fair is good for the country. Now there is also the other side that believes that the unemployment rate will stop the economic growth in the future.
Now before discussing about this issue, it is very crucial to first have a clear understanding of the income gap. Now this gap is known as the inequality of the wealth distribution among the people that are in the country. Now when one would discuss about this issue, he would be looking at how much each class would be getting.
Now one would probably be more than familiar with the saying that the rich are getting richer and the poor are getting poorer. Now this is actually happening in America right now as majority of the wealth of the country is actually being taken by the rich. The middle class will also get a share but a low one, and the poor will be left with nothing.
Now the OECD was able to do a study on this. In this study, they surveyed the income generated by eighteen different countries between 1975 to the year 2007 and how these countries distributed the money to their citizens. Now what they found out was that in the US, the majority of the wealth generated in the country were actually all hogged by the rich.
In order to know why this is the case, one has to take a look at the active US market. Now it is common knowledge that the market of this country is a totally free market as it is a democratic country. This means that the wealth that is being generated by the people is not really monitored as the government would have little involvement with the market.
Now the million dollar question right now is that is this phenomenon good for the economy or bad for the economy. Now a lot of people would argue that it is in fact healthy for the economy because the rich people can make the country wealthy which means that they can contribute more to the economy. When that happens, then the country will be able to prosper better because of bigger taxes.
Others believe this gap is very unhealthy because the more the unemployment rate would be going up, the less people with spending power. Now with the power all being squeezed at the top, these economists believe that the economy of the US will suffocate itself to death. This is simply because it will not be utilizing all of its people and therefore not be fully productive.
Now by taking a look at some of the issues that would stem out from this one issue, it can be seen how this problem would affect the country. Now there are still those who believe that being fair is good for the country. Now there is also the other side that believes that the unemployment rate will stop the economic growth in the future.
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