Inequality - Research Paper Example

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Full name Professor Subject Date Economic Inequality in America I. Introduction Economic inequality is one major concern of modern America because the nation has been known for decades as the country where dreams come true. This is the reason why so many foreigners not only come to the nation to study but also to find a job, and start a brand new life, hoping that they will soon have in their hands the American dream…
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Download file to see previous pages Policies were changed, people’s benefits are said to have been greatly considered and every law that was proposed was conceived to better the nation and the economic conditions of the citizens. Nevertheless, the struggling America presents herself as a clear example of a nation which can never rise further unless she will find ways to heal economic inequality. II. What Economic Inequality Is Economic inequality includes but is not limited to the gap between the earnings of the rich, the middle class and the poor. Research shows that only one percent of America’s population earns incredibly high salaries, taking home millions in a year ( On another stratum, a far higher percentage average much less than a million annually and a great number are unemployed and rely on welfare. Obviously, there is a great difference among the three categories and the situation is not a new dilemma the nation faces. In the past, there have also been great gaps between the earnings of the rich and the working class but the current economic inequality is found to be worse these days. According to studies, this inequality is due to the fact that there is also a great difference in how people are taxed nowadays. Those who have high earnings are not equally taxed as the regular earners. In fact, it is noted that “tax cuts since 2001 have returned over $100,000 to each person making over $1million per year. These same tax cuts have returned less than $100 per year to those making less than $50,000 annually. For those earning $55,000-99,000, the percentage of federal income paid in taxes has actually increased from 18.7% to 19.5% during that period” (Dolgon & Baker). Looking at this information, it is obvious that the high earners are paying less than the middle class and low earners. Therefore, this economic inequality is not just an inequality in terms of the earnings but also in taxes paid. This is the reason why it is said that the rich are getting richer while the poor are getting poorer because of the discrepancies in how they are treated. III. Causes of Inequality The causes of inequality include the above mentioned reasons such as the large differences in salaries and tax payments. Moreover, it is said that the middle class and those below them buy food and other basic needs only with their earnings while the rich have much to spare and invest in other businesses where they get additional income (Allen). This obviously makes the inequality even greater. Another factor that hugely affects inequality is the ever increasing costs of health care and education. Health care is a very important matter that needs to be considered because it basically affects how a person functions in society. Much is spent in this area because being healthy is the prime concern of citizens, especially the working class, for them to be able to work well and earn. In terms of education, most if not everyone, wants to study because it is believed that education is one of the means to success. Therefore, parents often spend too much on the education of their children. However, when the hopeful students graduate, they find out that there are actually more competitors for a job than the jobs that would suit their education. What happens then is, they tend to become underemployed and paid lesser than what they deserve, losing the chance that they always ...Download file to see next pagesRead More
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