InCome Inequality in the United States
Roberto Diban Jattin
Ms. Teresa Iverson
ENGL 1005 – 8
April 1st 2015
Income inequality in the United States
The United States of America is probably the richest and most powerful nation in the world. It has the world’s largest economy; it has the highest Gross Domestic Product (GDP) in the world, and is the country with the largest production of oil, gas and public services. However, the United States is also one of the countries with the most unequal income distribution in the world. The income inequality in the United States is a serious problem, which has expanded considerably in the last years. The gap between the rich and the poor is getting worse and worse everyday. The rich is getting richer and the poor, poorer. According to Emmanuel Saez and Gabriel Zucman, two economists who work primarily investigating the income inequality in the US: “There is no dispute that income inequality has been on the rise in the United States for the past four decades. The share of total income earned by the top 1 percent of families was less than 10 percent in the late 1970s but now exceeds 20 percent as of the end of 2012.”(1) These numbers are really scary because they show how income inequality has expanded very fast and without limit in this country. It is incredible how bad the income inequality is in the US and nobody has done anything to end with this problem. The income inequality, just as any other problem, has some solutions that if are correctly followed, will help to end with the problem. One of the solutions is to break down the social barriers between the rich and the poor. Another solution can be to invest in education, because education is the basis of every good society and other solution can be to raise the minimum wage, so that the poor will have highest incomes. Income inequality in the United States should be stopped in order to have a more balanced economy, without a big difference between the rich and the poor, but should be done in multiple, cautions steps in order to avoid an economic crisis in the country.
Even though most people believe that income inequality is a serious problem that affects the American, there are many others who still believe that inequality is good for the economy of the United States and that it can contribute to a well-ordered society. Scott Winship in his article “Income inequality is good for the poor” for The Federalist said “A comparison of global data shows that developed countries with more income inequality have higher standards of living for the poor and middle class.”(2) Winship believes that inequality is good for the poor because when the big companies are very rich there are more opportunities for the poor people to find a job. He also says that the nation’s wellbeing is most important than the personal benefit. Also many people believe that the inequality is necessary because it rewards the hard working, achievement and entrepreneurship. Also, Income inequality is good because it makes the people in middle and low classes to strive more to have success. John Tammy, a Forbes writter talks in one of his articles about Reuven Brenner, a McGill University economist who pointed that brilliantly in his book: History: The Human Gamble: “it is gaps in wealth that drive creativity among the citizenry. Seeing the immense wealth possessed by the most successful, those not in the rich club strive mightily to join the wealthy; their innovations redounding to individuals of all income classes.”(1). Income Inequality motivates people like us clearly with fewer resources than the famous billionaires in the world to work harder, make more and innovate in new things to have success in our lives and meet our goal of being like Gates, Trump, Buffett, etc.
Historically, due to their very high income levels, and the exorbitants sums of money that they have, big and rich companies like Walmart or McDonalds have offered many more jobs and more opportunities for their employers than other companies with less incomes and resources. This demonstrates that the income inequality can be sometimes, good for the poor. Also, we all know that in every economy, in every society, there are people who will result undermined economically. In this case, in order to expand the economy and get what is better for most people, there will be people that will have to give up something for the benefit of everybody in the future. Another of the factors presented by the income inequality supporters is that is much more needed and important the benefit of the whole society and country than the benefit of an individual or a small group of persons. Also, is understandable when people say that inequality is fair because it rewards the people who works hard to succeed, and because is fair that the ones who invest and make more to earn the money, are the ones that have to be the beneficiaries not those who haven’t done anything with their lives, and doesn’t deserve the money.