Income Inequality in America - Essay Example

Income Inequality in America Inequality in America is of great concern as President Obama commented ‘inequality is the defining challenge of our generation (Winship). Inequality has reached toxic levels in America especially after the great depression in which only a few people own wealth compared to the large population. Talented children from low-income families have a challenge of pursuing their careers through talent development. Income inequality is rising every day due to the stagnant incomes earned by the poor and the middle earners. The economy is growing at a very low rate and children in the lower income ladder face challenges as they miss opportunities in well-paying jobs due to their missed opportunities. Political inequality is another contributory factor as some minority groups lack representation in the government thereby widening the inequality gap. Researchers argue that inequality results in financial crises in the country and creates indebtedness. As the inequality increase, the middle class tends to overspend to be at the same pace with the rich leading to bankruptcy as every level tries to catch up with the next. The rich people in America have taken the largest chunk of wealth while the incomes in the middle and low class stagnate lowering their living standards (Furchtgott-Roth 13). Middle class in the United States have the tendency to spend more compared to their counterparts in other places due to pressure. Most of the spending by the non-rich people involved personal appearance and maintenance of their homes and their spending is more compared to other people in the same class. Any increase in their incomes will still make very little improvement as the spending is directed to buying of discretionary items and not the basic commodities. Income inequality is a big problem in America as it also leads to political inequality as the outcomes of politics are inclined towards the preferences of the rich. Income inequality relates to the unequal distribution of the wages and taxable income although consumption is left out. Consumption should be one of the measures of inequality and well-being as it results from the disposal of incomes. Income fluctuates every time due to additional borrowings thus income does not provide the best measure for inequality as it does not offer a reflection of the actual income. Income inequality is rising at a higher rate than the consumption inequality in the US according to various studies. `One of the causes of income inequality is the changes in demography, especially in the 1980s (Nolan Poole and Rosenthal 474). The two factors contributing to income inequality are the human obsolescence and product due to the advancement in technology. The two can be managed by applying the relevant technology in the globalized market especially communication technology. Accumulation of wealth is good, but the problem arises when its distribution is uneven leaving some with very little while the others have plenty of it. There are three groups of the lower-income earners in which some have low incomes due to lack of employment during which they are looking for a job or a well-paying one (Garrett 25). Another group with low incomes is the elderly persons with little retirement income although they might have assets like a good home and stocks. Because their low income is due to their absence in the labor force, thus they do not earn anything. The other group of low-income earners is the students and fresh graduates who have not secured any meaningful job. The income was contributed by the fact that most of the wealth went to the haves and not to the have not. Immigrants have contributed to the inequality gap by occupying the lowest ladder and doing the low-income jobs in the US. Politicians do not support most of the poor immigrants since they do not participate in voting thus, there are minimal policies to lower inequality through redistribution. There are various ways of reducing and tackling inequality in the US such as straightening and strengthening the legal systems to prevent abuse by the powerful persons. Creating more opportunity for the poor and the jobless will shape the market instead of leaving it to the market forces. The young generation is very important as they make the future resource. Som countries aim at ensuring that the young have enough food, access quality education, and health care to fulfill their future dreams and develop the nation. The US should adopt such policies to all its citizens including the young immigrants (Nolan, Poole, and Rosenthal 475-476). A better taxation system will ensure that the rich contribute to the development of the economy, and everyone should be encouraged to do the right thing to ensure a positive economic growth. The upper class should always pay higher taxes to finance the essential sectors of the economy so that the poor can benefit. Things such as tax breaks, loopholes, and subsidies should be limited especially in sectors of energy, business, and financial companies. The government can also control the bank’s lending rates to ensure that the poor can access finances to start income generating projects. Reforming the tax system to enable the government raises the required revenue for major development projects should be a priority. The government should aim at helping the middle in spending matters to help them utilize their funds appropriately. Improvement in literacy levels will play a major role in solving the income inequality in America and improve the people’s well-being. The constitution of America is concerned with the liberty and not the rights of equality of the citizens. The equality as defined in the constitution is more of self-governance and freedom and does not demonstrate economic equality. The 14th amendments to the constitution focused on equality and liberty and formed the cornerstone of the American constitution system (Harvie 235). The equality in the constitution mostly defines the racial justice, ideas, and faith, which must be equal in the eyes of the state. The equality in the constitution also gives individuals the right to equal participation in various activities such as voting, criminal justice, and politics. The economic equality does not cater some much for equality of income distribution in the various levels making it difficult for the policy makers to address the matter. The constitution must emphasize more on economic equality to deal with equal distribution of resources to all the citizens and bridge the inequality gap. America is a country that is rich but has millions living below the poverty line due to income inequality. The country boasts of a fair play in the economy yet the rich pay a very small portion of their wealth as taxes than those that are poor. The allegiance to the flag asserts justice for all yet only a few with the resources can afford it. The inequalities have the result of undermining the US economy as there is a lot of wealth in the high class and poverty in the middle and low class. There is a lot of discrimination in the education system and health care, especially among the poor people. The current situation of inequality in America is contrary to its dreams as a democratic country and all the ideas of its foundation. The American ideas of foundation water equality for all in yet there is a lot of inequality in all the sectors of the economy (Madison 52). For instance, all children are supposed to access quality education but many children from poor backgrounds cannot afford advanced degrees. As a result, children from low-income earners cannot get the good jobs in America. The idea of America to provide a democratic environment for all the citizens is not a reality as oppression is higher than it was some years back. In conclusion, income inequality is of great concern as the gap is widening every day due to poor distribution of resources. The weak recovery from recession and the slow economic growth have many implications on the gap that exist between the rich and the poor. Income distribution poses a great challenge in the American economy as many citizens are finding it difficult to acquire basic needs such as quality education. Some of the solutions to the inequality are strengthening the unions to reduce power corruption that gives the rich the unfair advantage. The government can also tax the wealthy persons and fund the education and the health system in America. The other solution is a provision of quality education for all to ensure fair competition in the labor market. The American dream of providing justice for all and ensuring equality for all is yet to be achieved as the income inequality gap is increasing each day. The inequality threatens the democratic process and the ideas of its foundation because of the wealth gap. Works Cited Harvie Wilkinson. The Dimensions of American Constitutional Equality. Law and Contemporary Problems 55.1 (1992): 235. pdf Furchtgott-Roth, Diana. Income Inequality In America Fact And Fiction, 2015. Web. 20 May 2014. Garrett, Hardin. The tragedy of the Commons. Science 162.3859 (1968).1243-1248.Print. Madison, James. ‘The Constitution and the Founding. The Federalist. (1787), 10. Print. Nolan, McCarty, Poole Keith, and Rosenthal Horward. From Polarized America: the Dance of the Ideology and Unequal Riches.pdf. Read More