We tend to think of America growing more equal in society not less, and it has in ways such as gender equality, equality amongst races, marriage rights for the homosexual community, and citizenship rights for Americans that don’t own property. Although, these movements In equality come at a cost, brutal legal struggles and the actual participation of the American public are hard fights to ravage. It Is safe to say the economic battle we are facing today have the same difficulties when It comes to fighting for our nations economic equality. U.
S economists in the sass predicted that the economy would slowly become more evenly distributed, which seemed logical from the history trends during that time, but starting in 1979 incomes began to grow more unequal. However, the United States and not the only country in which incomes are scarcely unequal; it has become a global trend. In comparison, the U. S ranks one of the lowest in measures of income distribution in the world. Many changes in the global economy are making incomes less equal in many countries outside the united states, but the income- inequality trend has been unusually fierce here in the world’s richest nation.
The robber Is here, and It Is growing, so how can we stop this Issue without knowing the root causes of It? In 2003 Thomas Pickett and Emmanuel Sage noticed a dimension to the great divergence, the Inequality phenomenon Is more extreme the further up you go on the distribution ladder, and its very strong once you pass the threshold of the top one percent. Trickle up economics has a better track record than trickle down when it comes to distribution in America. The skyrocketing increase in non financial executive pay has increased among big corporations an enormous twenty-three recent since 2010.
This is what is driving up our economic inequality, so when the government tries in any effort to minimize the income differences, it must first show how these laws or regulations will benefit the most economically favored. If the favored don’t believe that they can benefit from such changes, they usually can change their friends In congress minds to do so otherwise. The answer Is to realize that we are falling In the wrong direction and for the American people to reject the notion that the Great Divergence Is Inevitable, because It Is not. Noah 357-370) As Timothy Noah roots around our nation’s major Issues In relation to our growing income gap, he underlines what seems to be the real causes of this continuous Growing Inequality Crisis and what we can do about it, Noah demonstrates the reality of our American government today, and how it is controlled by the ‘stinking rich’. Noah gives a fair and comprehensive summary of how inequality has widened so markedly over the last three to four decades, what it means for American society and what the country can -and should- do about it.
As he makes clear, what has mostly rowan is the gap between those at the top and those in the middle. As a result, his article reverberate more with the recent focus on “the 1 percent” than with more traditional concerns about poverty. Noah gives clear examples of how the income gap is hurting our economy as a whole while delivering an educated opinion on why Americans should wake up and realize what is happening to our system, through research and findings Noah supports his intriguing case with powerful insight to our continuing issue of inequality in America.
In the United States today, income equality is widening its gap between the lately and the poor, the saying “the rich are getting richer and the poor are getting poorer”, seems to spring up in every conversation about our growing economic crisis. However, it isn’t Just the United States that is suffering, it is a global phenomenon. The vicious cycle of the growing wealth of the nations top 1% seems to be a pattern among other countries as well.
Since inequality is increasing almost everywhere in the industrialized and post industrial world, with the increase being much greater in the United States, but to understand a global trend, we would need a more universal explanation. The key principal influences on unequal distribution of income in America that must change for the betterment of our economy include the failure of the federally mandated minimum wage to keep up with inflation; the rise of the new global super-rich, and what seems to be an anti-worker and anti-poor attitude among American politicians in general.
As America’s economic status currently has millions living in poverty, the simple answer would be to create more Jobs meaning steady salaries for low-income families; however, the problem seems to deepen in our society, apart Just from increasing Job listings. The problem is that the minimum wage for an adult is not standing grounds for the recent inflation increase in our economy. About 20% of American adults who have Jobs are earning a mere $10. 65 an hour or less, so even at forty hours a week, that amounts to less than $22,314, which is the poverty level for a family of four ( Seaside 1).
By gradually raising the federal minimum wage to something close to a level that meets our nations inflation over the next few years, would be an important first step to helping the working class climb out of poverty. Minimum wage increases would also help the workers as well as the economy by injecting more money into the economy, and minimizing the great divide between the rich and poor. Today, the current minimum wage fails to meet a basic standard of reasonableness in our society.
If effort should yield opportunity according to many politicians than failing to raise the minimum wage is a failure to uphold the most important normative principle of the American economy. We are unable to uphold the promise that if you work incredibly hard, strive and invest, you can experience ability for yourself, and position your children to continue ascending. There is simply no room for denial when research shows how the nations economy as a whole economic inequality focuses on growing wage gaps between different groups of workers in a hierarchy of professions.
The dramatic rise in inequality has corresponded quite neatly with top 10% of the richest Americans which had almost doubled their earnings in 2003 than compared to the bottom 90% of American citizens in the same year. So, by breaking down the populations into groups of efferent incomes, especially ones that we’re closer to the unique 1% of the income spectrum, Thomas Pickett and Emmanuel Sage we’re able to notice an extraordinary gap between the “top-coded” incomes.
Pickett and Sage we’re able to identify the strong domination of the nations wealth that was held in only a few hands compared to a country who was living in bottom 90% that shed new light on the growing issue. (Noah 362) Despite the fact that it seems inevitable with Picket’s and Ease’s findings that the rich really do get richer, it does not not have to be this way, based on some story of regulations and taxes that shows a different alternative for a more equal outcome.
History accurately shows that by dwindling the enormous income shares the super wealthy receive, we would not only be minimizing the gap, but strengthening our economy as a whole. However, after a certain point, money is only used for power, not consumption. The reason that there is a progressive tax system is to redistribute wealth to the less fortunate so that they to have a chance to get educated and strike it rich(leisure 1). The problem is that the extremely wealthy and gig corporations have gamed the system and don’t pay their fair share of taxes or use they use power and money to influence the system unfairly.
They have crept so high into the system that they control the governments of the world. It is not a new phenomenon, it is one that has been fueled by technology and is constantly progressing, but to commence a new direction for the United States to follow the problem must be dealt with at a high level of government. Through protests such as Occupy Wall Street, the American people have a voice and can change the future for the better.
Today, income inequality is no hidden flaw of America, we see and experience the pressures of career choice and debt that string along with the unequal distribution of wealth. With unreliable data and few resources to gain evidence of a faulty system; American politicians sometimes turn a blind eye or demean the importance of the issue. Obviously unemployment and economic deterioration are serious problems, but they are problems that would be further eased by addressing the current, historic, and growing imbalance in income inequality.
The avoidance of such a current dilemma, such as the enormous gap of income, is an issue itself. For the problem to start resolving itself, we must bring the issue into the spotlight to be addressed by the officials who run our country. Income inequality, by contrast, is getting worse over time. Doesn’t it make more sense to focus attention on the problem that’s getting worse rather than all the problems-? unemployment, the deficit, limited opportunity-?that are not?
But in turn, they could be resolved with addressing the prevalent income gap. (Noah 368) On the other hand, some say that income inequality is inevitable and has as many pros as it does cons. Arguments such as how inequality is necessary to encourage entrepreneurs and contractors to take risks and set up new businesses, because without the prospect of substantial rewards, there would be little incentive to take how controversial of a subject matter it is.
Since many politicians believe that people deserve to keep higher incomes if their skills merit it, than the unequal distribution of income is rightfully dispersed (Frank 1). For example, If a top football player gets paid $100,000 a week, this is a reflection that people are willing to pay that kind of money to watch him. The promise of a higher wage is essential to encourage extra effort. By rewarding hard work, there will be a boost to productivity leading to a higher national output – so everyone can benefit.
Although the problem may seem Justified, income inequality still has shown tremendous fault in our economy, and while it may benefit the rich continuously, it shows the great divide of what our nation’s values are now based on – greed and status. In effect, Wall Street has eaten our economy, it seems that the executives and Coos deserve more slices of the American pie, then as do the rest of Americans who struggle to make ends meet. In 2009, Philippe Adamant, president and chief executive of Victim, received a yearly salary of 84. 4 million dollars, an amount that exceeds the budget for a town of New Haven, Connecticut.
In that same year that Adamant, the corporate titan received his 23% increase, the comparable median for all workers in the United States fell slightly (Noah 367). Is this how America does business? By rewarding unmoral and unmerited tactics in tremendous amounts of revenue. As many politicians try to diminish the weight of the income inequality issue, it is still prevalent to the hard working citizens vying under their means to get by, while our nation’s wealth runs circles in corporate companies above the coveted 1% of wealthy individuals.
For a country of opportunity and equality, our principles have shifted into a weakening system of monstrous greed and inability to properly address our wrongs as a society, we must start to face the issues affecting our country for it to continue to head in the right direction for the future. All in all, the Great Divergence of our nation has been happening for some time now, and the repercussions of this faulty system are obvious. Americans aren’t unaware of these trends. America’s income distribution is likely to continue the trends of the recent past.
While those at the top will go on drawing huge salaries, those in the broad middle of the middle class will see their incomes change for the worse. The political consequences will depend on the pace of change and the economy’s general well-being. With luck, politicians and lawmakers will realize the impact of incomes and change will happen gradually, allowing time for workers to adapt their skills while strong growth will keep employment high. But if the economy lows, Americans’ skepticism of this great divide is sure to rise, and even their famous tolerance of inequality may reach a limit.
Until the revolt occurs our economy will sink deeper into economic instability and inequality, which we can simply not afford to happen to us as a nation. Works Cited Frank, Robert. “The Vicious Circle of Income Inequality. ” The New York Times. N. P. , 1 1 Jan 2014. Web. 12 Feb. 2014. 2006. Web. 12 Feb. 2014. Noah, Timothy. Rereading America, From the Great Divergence, Americas Growing Inequality Crisis and what we can do about it . 9th. Boston: Bedford/ SST. Martians, 2013. 356-372. Print.