Why the Rich Are Getting Richer and the Poor Poorer - Research Paper Example

Why the Rich are getting Richer and the Poor Poorer In the olden days, there were rich and there were poor, in the modern world we see people have different classes like rich and poor. But today the majority of human race is facing a difficult time. The main reason of the difficulty is created by the man himself. Then we must have knowledge what makes the two classes different form each other. Technology, homes, cars, etc are the dependable and viable commodities that are responsible to alter the class of a person. However, today, it is a commonly known fact that it is impossible for the poor to make steps towards changing their class, middle class people are having difficulty in maintaining their economic position and rich are becoming richer. In this research, I will focus on the fact that “Why the rich are getting richer and the poor poorer and how the economics of the middle class is affected”. In most of the world, it is absolutely true that the poor are becoming poorer and the rich richer. In the whole scenario, the middle class is eliminating and shifting to the poor class. Most of the middle class is associated with the jobs and some researchers have the view that as the middle and lower level management are becoming less in number, more and more middle class men are becoming jobless (Reich, p309-315), that is becoming a huge reason of the degradation in the living standard of the middle class persons. The high level jobs like assistant directors, assistant managers, etc lost their too. The similar case is with the low level jobs like production jobs, the wages for such employs in under developed to developed countries now a day is much lower as compared to the decline in the value of money. The production jobs are much valuable for the persons who have to work at extreme low wages when they have no job. In 1960, the low level employs are the member of a union that responsible for maintaining wages for the works but at the end of the year 1989 the union has only 17 percent members from the total production workers. The whole scenario has no or little impact on the large technology distributors and manufacturers, like Sony, Toyota, etc. These factories kept to produce the products according to their plans and routine. Technology is also responsible for making the people poorer and rich richer (Lieberman, 2011), as if we consider a motor industry, during 1970, a Japanese based motor company required a time span of 24 hours to produce a vehicle (car) but now a day it takes not more the eight hours to produce a car by utilizing the robots instead of human workers. The robots replace the human workers and the persons who program and run the robots are quite less and no other person is thus required to performs the work like that of the robot (Reich, p309-315). The economic condition of the middle class family is lowering day by day as the prices for the little luxuries like fuel, cost of food and medicine are rising, although technology is becoming cheaper but the cost of basic necessities are becoming higher. In this case it has become difficult for a middle class person to afford the luxuries without extra effort (Zukerman, 2008). According to sociologists unequal distribution of wealth has become a biggest reason of this sustainability. Like the high level salaries of super stars, musicians, athletics, management payment and the rapid progress of financial sector etc. The taxes which are taken from high earners are very low and they are earning lot of money and paying a very small amount of tax. The departments which have already mentioned above are becoming rich with the passage of time. In the contrast the middle class people, who are doing common jobs, are giving high amount of tax of their salary as compared to the ratio of elite class (Puzzanghera, 2011). “One would like to think that it is unambiguously good that more than a third of the poorest citizens see their incomes grow and converge to the levels enjoyed by the richest people in the world,” writes Professor Sala-i-Martin “And if our indexes say that inequality rises, then rising inequality must be good, and we should not worry about it!” (Postrel, 2002) Sociologists have studied all economic changing in the whole world and said that the main same type of sustainable change is happening in Nigeria, where poor and middle people like who used to work in the offices, works in fields, works in others house, are getting more poorer and the political and economical elite class who are the owners of multinational companies, who are the land owners and having lots of money in their banks are becoming richer with the passage of time. “The rich guys are doing well, therefore reforms will not come,” says a pessimistic Professor Sala-i-Martin (Postrel, 2002). There is also the one more basic reason of this sustainability is the vast gap between the pays of upper class and lower class (Baldwin, 2011), according to research in 1970 the pays and earnings of upper class is 30 times more than poor and middle class and in 1997 the pays and earning of upper and elites class is 74 times more than poor or middle class and also middle class did not have any taxation relief. According to this research this has been noticed that gaps between class and economic gap means between the salaries the classes, are improving day by day. The major reasons which, already discussed in the above paragraphs of the sustainable change in society are the unemployment of middle class like the improvement of technology has become the main reason of unemployment of middle class because robots are doing the major works in the companies because of that poor and middle class is becoming poorer. Second main reason is Increase in the prize of luxuries like the increase in the prize of petrol, electricity bills; increase in the prize of eatable things has become the main reason. Very low compensation of middleclass like assistant manager, assistant directors etc and no relief of taxation on them and very high compensation of upper class like the celebrities and the land owners who gives very less amount of taxes as compared to the ratio of middle class has become the main reason because of that rich are becoming richer and poor are becoming poorer. Works Cited Baldwin, Chuck. "Economic Bad Times Just Beginning."NewsWithViews.com .., 29 Sep 2011. N.p, Web. 20 Dec 2011. http://newswithviews.com/baldwin/baldwin668.htm Lieberman, Robert C.. "Why the Rich Are Getting Richer: American Politics and the Second Gilded Age."Foreign Affairs. N.p., Feb 2011. Web. 20 Dec 2011. http://www.foreignaffairs.com/articles/67046/robert-c-lieberman/why-the-rich-are-getting-richer Postrel, Virginia. "The Rich Get Rich and Poor Get Poorer. Or Do They?." New York Times 15., Aug 2002, N.p. Web. 20 Dec. 2011. http://www.nytimes.com/2002/08/15/business/15SCEN.html?pagewanted=all Puzzanghera, Jim. "The rich are getting richer, U.S. study says." Los Angeles Times 27 Oct 2011, n. pag. Web. 20 Dec. 2011. http://articles.latimes.com/2011/oct/27/business/la-fi-rich-poor-20111027 Zukerman, Sam, "Rich Getting Richer, Poor Getting Poorer", SFGate. 2008. N pag, Web 20 Dec. 2011 http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/04/09/BUVI10258K.DTL Williams Walter. “Are the Poor Getting Poorer? Capitalism Magazine. 2007. N pag Web. 20 Dec. 2011 http://townhall.com/columnists/walterewilliams/2007/10/31/are_the_poor_getting_poorer/page/full/ Reich, Robert B. “Why the Rich Are Getting Richer and the Poor, Poorer”. P 308-315, Web 20 Dec. 2011 http://isc.temple.edu/neighbor/world/reich_richer-poorer_1991.pdf Read More