income inequality essay free

• Undergraduate
• High School
• Architecture
• American History
• Asian History
• Antique Literature
• American Literature
• Asian Literature
• Classic English Literature
• World Literature
• Creative Writing
• Linguistics
• Criminal Justice
• Legal Issues
• Anthropology
• Archaeology
• Political Science
• World Affairs
• African-American Studies
• East European Studies
• Latin-American Studies
• Native-American Studies
• West European Studies
• Family and Consumer Science
• Social Issues
• Women and Gender Studies
• Social Work
• Natural Sciences
• Pharmacology
• Earth science
• Agriculture
• Agricultural Studies
• Computer Science
• IT Management
• Mathematics
• Investments
• Engineering and Technology
• Engineering
• Aeronautics
• Medicine and Health
• Alternative Medicine
• Communications and Media
• Advertising
• Communication Strategies
• Public Relations
• Educational Theories
• Teacher's Career
• Chicago/Turabian
• Company Analysis
• Education Theories
• Shakespeare
• Canadian Studies
• Food Safety
• Relation of Global Warming and Extreme Weather Condition
• Movie Review
• Admission Essay
• Annotated Bibliography
• Application Essay
• Article Critique
• Article Review
• Article Writing
• Book Review
• Business Plan
• Business Proposal
• Capstone Project
• Cover Letter
• Creative Essay
• Dissertation
• Dissertation - Abstract
• Dissertation - Conclusion
• Dissertation - Discussion
• Dissertation - Hypothesis
• Dissertation - Introduction
• Dissertation - Literature
• Dissertation - Methodology
• Dissertation - Results
• GCSE Coursework
• Grant Proposal
• Marketing Plan
• Multiple Choice Quiz
• Personal Statement
• Power Point Presentation
• Power Point Presentation With Speaker Notes
• Questionnaire
• Reaction Paper

Research Paper

• Research Proposal
• SWOT analysis
• Thesis Paper
• Online Quiz
• Literature Review
• Movie Analysis
• Statistics problem
• Math Problem
• All papers examples
• How It Works
• Money Back Policy
• Terms of Use
• Privacy Policy
• We Are Hiring

Income Inequality in America, Essay Example

Pages: 5

Words: 1442

Hire a Writer for Custom Essay

Use 10% Off Discount: "custom10" in 1 Click 👇

You are free to use it as an inspiration or a source for your own work.

Income Inequality in America. Is it a problem and how can it be fixed?

The fact that income inequality is a problem in the United States is undeniable. Claims of the widened income gap between rich Americans and poor Americans, in addition to the diminishing middle class, is a cause for concern (Yates 1). The income inequality is one of the worse political and economic problems the United States faces (Piketty and Saez 1-3). It causes significant problems to social and political stability. It is also an indicator of national decline. Indeed, it is based on this premise that, this essay examines whether income inequality in America is a problem, as well as how it can be fixed.

Income inequality leads to political change. As Saez and Zucman (1-6) explain, loss of income by the middle class compared to the top-earners leads to political change. During the 2000s, many businesses emerged seeking political offices, as they catered for nearly 30 times more employees than the trade unions. Between the year 2000 and 2010, business interest groups spent $492 million on labor, and nearly $28.6 billion on sponsoring activism. This led to the rise of political setting the business groups dominated (Smith 3-5).

Income inequality has adverse effects on democracy. Some scholars have considered that income inequality is not compatible with real democracy (Milanovic 1). This is since creating a disparity between wealthy and poor is historically the main cause of most revolution. Indeed, it is commented that the political system in the United States faces serious threats of drifting towards a kind of oligarchy by influencing the affluent, corporations, and special interest groups. Even though, income inequality may not have impact on economic growth, the action by the government may reduce the current levels. This raises tax rates on the wealthy. It may also cause political dispute or friction – between the poor and the rich.

Income inequality contributes to national poverty. Greater income inequality is likely to encourage greater rates of poverty, as under such situations, income shifts from those in the lower income bracket to those in the upper-income bracket. Saez and Zucman (1-6) argue that when wealth remains in upper income bracket, it may lead to political revolutions and policy reforms to offset the impacts that induce poverty. This has been the trend over the decade (Economist 1). The gap in earnings has also increased over the past five years. Current statistics from the U.S. Census shows that in 2010, the wealthiest 20 percent of entire households was allocated 50.2 percent of the sum household-income, compared to the poorest 20 percent, which received 3.3 percent. In the 1980s, the income shares of the richest households received 44.1 percent. The poorest got 4.2 percent. This shows rising inequality and poverty. Further statistics indicates that individuals in the least-affluent households lost nearly 21.4 percent of their income share. On the other hand, the most-affluent households witnessed an income rise of nearly 13.8 percent. Conversely, the remaining two poorest quintiles lost income (Economist 1).

Income inequality leads to political polarization. As Political Research Quarterly establishes, income inequality is connected to the current political polarization in the United States. In its 2013 study, Political Research Quarterly established that officials who were elected tended respond to the whims of the officials within the upper-income bracket, as a result ignoring the needs of people within the lower income group. The analysis provided by Martin and Harris (1) show that, income inequality is connected to the extent to which the House of Representatives polarization has always voted.

Income inequality also leads to social stratification. Martin and Harris (1) show that class divisions have mainly resulted due to income inequality. This has led to class warfare where the rich rally around the rich and the poor rally around the poor to gain political emancipation. Hence, the rich tend to create an own virtual country, which in their perception should be a self-contained world that is complete with first-rate social services, separate economy, and infrastructure. Indeed, the gap between poor and the rich is widening more in the United States than most advanced country. A growing consensus, for that reason, is that Americans have placed emphasis on pursuing economic growth instead of income redistribution. This argument is supported by current economists, such as Corak (2013) in his analysis of theorist Alan Krueger’s “Great Gatsby Curve.” In his review, Corak (2013) indicates that nations with greater income inequalities also tend to have a greater proportion of economic advantages and disadvantages. The trend is passed on from parents to their offspring.

On the other hand, some political theorists have argued that income inequality is not a problem, and that the problems have been overstated.

Indeed, Saez and Zucman (1-6) perceive that despite the existence of income inequality, economic growth and equality in terms of getting opportunities should be what matters. Some commentators have also expressed that despite being an American problem, it is also a global problem. As a result, it should not trigger significant policy reforms. Others have also expressed that income inequality has some underlying advantages, leading to a well-functioning and competition-driven economy. Additionally, significant policy reforms to cut out income inequality may lead to policies that lessen the welfare of the more affluent individuals.

A section of researchers also argues that there is no basis in the argument that income inequality slows economic and socio-political growth. Responding to claims that income inequality slows economic and socio-political growth, Petryni (1) argues that inequality is healthy within a free market economy, as it promotes greater competition for economic and political opportunities.

At the same time, wealth inequalities tend to compensate for themselves where an extensive increase in wealth occurs. This also implies that since the income inequalities do not pose significant political or economic problems, forced wealth transfers through taxation may obliterate the income pools needed to create new ventures, leading to further political discord between the poor and the wealthy in the society. Indeed, some recent studies have established a link between high marginal tax rates on high-income earners and greater growth in employment (Petryni 1).

Some political and social theorists also perceived income inequality as valuable and natural characteristic of US economy. The American Enterprise Institute sees the growth of income inequality gap as linked to the growth of opportunities—including the motivation and desire to seek political and social emancipation.

Smith (1) further contends that inequality emanates from the growth of economic prosperity and leads to an improved standard of living of the entire US population. Such incomes, Milanovic (1) argues, are a way of rewarding certain actors in the economy for their maximal investment efforts in the future. Towards this end, therefore, suppressing inequality discourages output and pursuit of political emancipation.

Conclusion and recommendations

Largely, income inequality is a problem in the United States. Income inequality contributes to national poverty. It also has adverse effects on democracy. Further, it leads to political change. Income inequality also leads to political polarization and stratification.

Hence, there is a need for more advanced tax and transfer policies that can align the United States with the other developed nations. This requires tax reforms, such as enacting tax incidence adjustments, subsidizing healthcare and increasing the social security, heavy investment in infrastructure, fortifying labor influence and providing higher education at low costs.

Making education available to more Americans through policies that subsidize cost of education will mean that more Americans have an opportunity for better income. This is since individuals with high education qualification report lower unemployment rate. However, equal job opportunities are also crucial. Public expenditure on welfare should be increased to ensure social and economic security, where the government provides subsidized healthcare. The more affluent members of the society should also be taxed higher than, the poor Americans.

Works Cited

Corak, Miles. “Income Inequality, Equality of Opportunity, and Intergenerational Mobility.” Journal of Economic Perspectives 27.3(2013): 79–102

Economist, The. “The rich, the poor and the growing gap between them,” 2006. 11 April 2015, <http://www.economist.com/node/7055911>

Kenworthy, Lane. “Does More Equality Mean Less Economic Growth?” 2007, <http://lanekenworthy.net/2007/12/03/does-more-equality-mean-less-economic-growth/>

Martin, Jonathan and Harris, John. “President Obama, Republicans fight the class war.” Politico, 2012. <http://www.politico.com/story/2013/04/barack-obama-class-warrior-90052.html>

Milanovic, Branko. “More or Less.” International Monetary Fund, 2011.

Petryni, Matt. “Advantages & Disadvantages to Income Inequality.” n.d. 11 April 2015, <http://www.ehow.com/info_11415987_advantages-disadvantages-income-inequality.html>

Piketty, Thomas and Saez, Emmanuel. “Income Inequality In The United States, 1913–1998.” The Quarterly Journal Of Economics 28.1 (2003): 1-39

Saez, Emmanuel and Zucman, Gabriel. “Wealth and Inequality in the United States Since 1913: Evidence from Capitalised Income Tax Data.” National Bureau of Economic Research: Cambridge: 2013

Smith, Hedrick. “Who Stole the American Dream.” Random House: New York, 2012. < http://newshare.com/ruleschange/book-notes.pdf>

Todd, Michael. “The Benefits of Wealth Inequality (and Why We Should Not Fear It).” Pacific Standard , 2013. <http://www.psmag.com/business-economics/benefits-wealth-inequality-now-fear-67567>

Yates, Michael. “The Great Inequality.” Monthly Review 63.10 (2012)

Stuck with your Essay?

Get in touch with one of our experts for instant help!

American Airlines Demographic Information, Research Paper Example

Comparing and Contrasting Poems, Poem Example

Time is precious

don’t waste it!

Plagiarism-free guarantee

Privacy guarantee

Secure checkout

Money back guarantee

Related Essay Samples & Examples

Relatives, essay example.

Pages: 1

Words: 364

Voting as a Civic Responsibility, Essay Example

Words: 287

Utilitarianism and Its Applications, Essay Example

Words: 356

The Age-Related Changes of the Older Person, Essay Example

Pages: 2

Words: 448

The Problems ESOL Teachers Face, Essay Example

Pages: 8

Words: 2293

Should English Be the Primary Language? Essay Example

Pages: 4

Words: 999

Income and Wealth Inequality

Introduction

There are many different types of inequality among people: educational attainment, work experience, and health—to name a few. This essay discusses economic inequality: its causes, measurement, and the potential impact of its growth in the U.S. economy.

Economists directly link differences in educational attainment and work experience, also known as human capital, to differences in economic outcomes. That is, formal education and job skills determine how likely a person is to find and hold a stable job that pays good wages. The flow of money from wages is the most important source of income for most people. Over time, regular income from employment allows people to own assets such as a home or a retirement financial portfolio. That stock of assets is called wealth .

Data collected by federal organizations such as the Census Bureau and the Board of Governors of the Federal Reserve System (BOG) allow us to measure how unequal the distributions of income and wealth are in the United States. Those data show that, since the 1970s, some individuals and families are earning much more income and accumulating much larger amounts of wealth than the typical family does.

Data reported by the World Bank allow us to compare the distribution of income across countries. As of 2018, the available data show large international differences in income inequality. Although not all countries in the world have data on income inequality, among those that do, the United States ranks among the top 25% most unequal.

What Causes Inequality?

The root cause of differences in income and wealth across individuals and households is a combination of personal and social factors. Personal factors are unique to individuals and include talent, effort, and luck. Such factors can be either nurtured or hindered by the family upbringing of the individual. Social factors affect groups of people and include education policies, labor market laws, tax codes, and financial regulations. At any moment in time, social factors can overpower personal factors to determine individual prosperity and increase inequality among people. 2

For example, as gradually more married women started working outside the home between 1960 and 2000, their family incomes increased and the differences in income between households became larger depending on whether they had one or two people earning wages. At the same time, differences in the types of jobs women and men tend to hold also contribute to income inequality between genders. 3

Because wealth is accumulated over time, older people are generally wealthier than younger people. For that reason, if there are many more young people than old people in the general population and the old hold more wealth than the young, overall wealth inequality will be high. 4

Finally, some people argue that the type of monetary policy used to ensure steady access to credit by households and businesses during recent economic contractions may contribute to higher levels of income inequality. However, that claim is hotly disputed. 5

How Is Income Inequality Measured?

There are different ways to measure how unequal income is in a country. The U.S. Census measures income inequality as the ratio of the mean, or average, income for the highest quintile (top 20 percent) of earners divided by the mean income of the lowest quintile (bottom 20 percent) of earners in a particular area. Let’s say a small county has 500 people earning an income. To measure how unequal those incomes are, the Census surveys and sorts each person’s income from highest to lowest, calculates the average income of the 100 people earning the most and the average income of the 100 people earning the least, and divides the first figure by the second figure.

Figure 1: Income Inequality by County

SOURCE: U.S. Census via FRED®, Federal Reserve Bank of St. Louis; 2022 Income Inequality by County (Ratio) , accessed June 23, 2021.

Figure 1 shows average county-level income inequality measured between 2016 and 2020. The Census considers the average income over a five-year period to account for the fact that peoples’ income changes from year to year. Measured this way, income inequality can be as high as 130 or as low as 5. These measurements mean that the most affluent households in a particular county can earn as much as 130 times or as little as 5 times as much as the least affluent households do.

Another way to measure income inequality in a population is to calculate the Gini index . The World Bank uses that index to measure how much the distribution of income among households deviates from a perfectly equal distribution. The Gini index can take any value between 0 and 100. A value of 0 represents perfect equality: All households earn the same income. A value of 100 indicates perfect inequality: One household earns all the income, and all other households earn nothing.

Figure 2: Gini Index by Nation

SOURCE: World Bank via FRED®, Federal Reserve Bank of St. Louis; 2018 GINI Index by Nation (Index) , accessed April 6, 2021.

Figure 2 shows country-level income inequality measured with a Gini index in 2018. The highest value is 54, and the lowest value is 25. It is important to note that two countries can have very similar Gini indexes despite having very different distributions of income. For example, in 2018, the Gini index for the United States was 41.4 and for Bulgaria was 41.3, despite the fact that those two countries’ economic and social histories are very different.

In the United States, since the 1970s, the Gini index has increased at a steady rate, indicating greater income inequality across families. 6 Some research suggests that this growing difference is related to the increased value of the stock market. Wealthier households hold more stocks than poorer households. So, when stock market prices rise, the income of wealthier households grows relatively more and overall income inequality increases. 7

How Is Wealth Inequality Measured?

The BOG combines information from two different surveys to measure how wealth is distributed among households: It takes the value of a household’s assets (e.g., the current market price of a home) and liabilities (e.g., the unpaid part of a mortgage for a home) and calculates the difference between the two, which is called net worth . Next, the BOG sorts household wealth from highest to lowest and reports the net worth of four different groups: the wealthiest 1% of the population, the next 9%, the next 40%, and the bottom 50%.

Figure 3: Share of Total Net Worth Held by Population Groups, 2021

SOURCE: Board of Governors of the Federal Reserve System via FRED®, Federal Reserve Bank of St. Louis; Share of Total Net Worth Held by Population Groups, 2021 , accessed April 6, 2021.

Figure 3 shows the share of total net worth held by each of those four groups. In 2021, the wealthiest 1% of the population (about 3.3 million households) held about one-third of total net worth; the next 9% (almost 30 million households) held a little more than one-third; the next 40% (about 133 million households) and the bottom 50% (about 166 million households) together held the rest—less than one-third of total net worth.

The data from the BOG show increasing wealth concentration since 1989, when the data first became available. 8 It is important to note that, over time, some individual households can move up or down between wealth groups, depending on the changing value of their assets. Also, some research suggests the particular nature of some economic fluctuations impacts some households’ net worth more than others. For example, the real estate crash associated with the 2007-09 recession resulted in large losses for the poorest 50% of the population. 9

Does Inequality Matter?

The economic impact of growing income and wealth inequality in the United States is an intensely studied question. Economists are debating how to answer that question by analyzing data and creating mathematical models to study it. Because this is ongoing work, there is no single answer.

Some research shows that, in richer countries, more unequal income makes economic fluctuations more pronounced. 10 That finding means that the changes in overall income and employment known as business cycles become more dramatic. Moreover, statistical evidence suggests increased income inequality undermines economic growth due to lower educational achievements (and human capital) among poorer individuals and households. 11 As discussed earlier, education builds a person’s human capital and is rewarded with higher income from employment. Finally, research suggests the increasing income and wealth inequality can undermine the use of monetary policy (as we know it) to maximize employment and ensure price stability. 12

Inequality in individual economic outcomes arises from a combination of personal traits and social conditions. The distributions of income and wealth in a society can be measured in multiple ways: comparing the highest to the lowest earners, calculating an index describing how unequal income is among all individuals, and assessing people’s financial wellbeing according to the value of their wealth holdings. Regardless of how we measure income and wealth inequality, their distributions in the United States are becoming more unequal. This trend is likely to impact economic life as we know it. More research is needed to figure out precisely how that may happen.

Asset: A resource with economic value that an individual, corporation, or country owns with the expectation that it will provide future benefits.

Gini index: A statistical measure of income inequality in a population that ranges from 0 (indicating absolute income equality) to 100 (indicating a perfectly inequal income distribution).

Household: A group of people living in the same home, regardless of their relationship to one another.

Income: The payment people receive for providing resources in the marketplace. When people work, they provide human resources (labor) and in exchange they receive income in the form of wages or salaries. People also earn income in the forms of rent, profit, and interest.

Liability: A legal responsibility to pay back money from a loan or other type of debt.

Net worth: The value of a person's assets minus the value of his or her liabilities.

Quintile: Any of five equal groups into which a population can be divided according to the distribution of values of a particular variable.

Wealth: The value of a person's assets accumulated over time.

• Obama, Barack. “Inaugural Address” . January 21, 2013.
• For an example of how the use of city maps to assess lending risk after the Great Depression influenced homeownership rates across population groups for decades afterward, see the following article: Mendez-Carbajo, Diego. “Neighborhood Redlining, Racial Segregation, and Homeownership.” Federal Reserve Bank of St. Louis Page One Economics , September 2021.
• For more on gender and labor markets, see the following article: Mendez-Carbajo, Diego. “Gender and Labor Markets.” Federal Reserve Bank of St. Louis Page One Economics , January 2022.
• For more on aging and wealth inequality, see the following article: Vandenbroucke, Guillaume and Zhu, Heting. “Aging and Wealth Inequality”. Federal Reserve Bank of St. Louis Economic Synopses , 2017, No. 2.
• For a contribution to the ongoing debate about the relationship between monetary policy and income inequality, see the following article: Bullard, James. “Income Inequality and Monetary Policy: A Framework with Answers to Three Questions” . Presented at the C. Peter McColough Series on International Economics, Council on Foreign Relations, New York, June 26, 2014.
• The following FRED® graph shows the income Gini ratio of all families, reported by the U.S. Census Bureau since 1947: Income Gini Ratio of Families by Race of Householder, All Races: 19647-2022 .
• Bennett, Julie and Chien, YiLi. “The Large Gap in Stock Market Participation Between Black and White Households”. Federal Reserve Bank of St. Louis Economic Synopses , 2022, No. 7.
• Owyang, Michael T. and Shell, Hannah G. “Taking Stock: Income Inequality and the Stock Market”. Federal Reserve Bank of St. Louis Economic Synopses , 2016, No. 7.
• For more about the change in wealth distribution over time, see the following post: Federal Reserve Bank of St. Louis. “Comparing the Assets of the Rich, Poor, and Middle Class” . FRED® Blog , October 21, 2019.
• For more on how recessions impact household net worth, see the following article: Mendez-Carbajo, Diego. “How Recessions Have Affected Household Net Worth, 1990-2017: Uneven Experiences by Wealth Quantile”. Federal Reserve Bank of St. Louis Economic Synopses , 2020, No. 38.
• For more on the relationship between inequality and economic fluctuations, see the following article: Iyigun, Murat F. and Owen, Ann L. “Income Inequality and Macroeconomic Fluctuations” . Board of Governors of the Federal Reserve System International Finance Discussion Papers , July 1997.
• For more on the relationship between income inequality and economic growth, see the following article: Cingano, Federico. “Trends in Income Inequality and its Impact on Economic Growth”. Organisation for Economic Co-operation and Development OECD Social, Employment, and Migration Working Papers , 2014, No. 163.
• For more on the relationship between income inequality and monetary policy, see the following article: Cairo, Isabel and Sim, Jae W. “Income Inequality, Financial Crises, and Monetary Policy” . Board of Governors of the Federal Reserve System Finance and Economics Discussion Series , July 2018.

For Teachers

Preview this Reading Q&A in our Econ Lowdown Teacher Portal. Then, log in or create an account to assign this resource in your online classroom.

Diego Mendez-Carbajo is a FRED economics champion at the St. Louis Fed.

Related Topics

Diego Mendez-Carbajo, " Income and Wealth Inequality ," Federal Reserve Bank of St. Louis Page One Economics , Sept. 1, 2022.

These essays from our education specialists cover economic and personal finance basics. Special versions are available for classroom use. Views expressed are not necessarily those of the St. Louis Fed or Federal Reserve System.

- Media Inquiries

- Economic Education

Find More Economics and Personal Finance Resources

U.S. Income Inequality

How it works

Throughout the history of capitalism, income inequalities between the upper and lower classes have caused many debates even revolutions in Russia, France, China, and others. The mass workers are subjected to the dominant ideology of elites, so the top ten percent earn a large amount of money while the lower class barely survives. The middle class came about which filled some of the disparity in income between the two classes. However, the middle-class today is losing some ground as job opportunities go overseas, and the requirement of college degrees for jobs increases. Need a custom essay on the same topic? Give us your paper requirements, choose a writer and we’ll deliver the highest-quality essay! Order now

In today’s society, education and a person’s social and economic background greatly influences his or her income. Income inequality also varies among different ethnic groups especially among Asians who have a one to ten ratio between the lower and upper classes. Also, female workers sometimes face lower incomes compared to male workers of the same position because of discrimination or a glass ceiling at work. In addition, the federal tax system to some people is a way to increase the income inequality among Americans, and Democrats and Republicans greatly vary in their views about the fairness of the tax system. Income inequality occurs in many societies, so it is an important to explore and find the reasons why it happens in different groups.

The American middle class is stable in size, but losing ground financially to upper-income families

[image: Share of adults living in middle-income households is unchanged since 2011]

https://www.pewresearch.org/fact-tank/2018/09/06/the-american-middle-class-is-stable-in-size-but-losing-ground-financially-to-upper-income-families/

According to the graph, the middle class is decreasing in size, while the upper and lower classes are increasing in size. In only forty-five years, the middle class has decreased by ten percent; however, the lower and upper classes grew four to five percent of the total adults in the workforce. Today, the middle class faces many issues that have caused its loss of size: disappearing opportunities for those with little education, global competition and rapid advance in technology, growing dependence on the temporary workforce, and the rise of growth industries and nonunion workplaces. Many middle-class jobs today require bachelor’s or higher degrees which limits the jobs available to those without college degrees. At the same time, companies send job opportunities overseas since foreign labors are much cheaper. Also, short term seasonal jobs do not have any retirement or health benefits, putting works with little financial security. Last of all, the fast-food industry is growing like never before; however, workers only earn minimal or low-level wages, which increases the number of people in the lower class. From the graph, the top class becomes richer as the lower class becomes poorer, reducing the middle class. One possible explanation is that the upper-middle class’ social network allows them to find higher level jobs since they have connections with CEOs and business owners. Their life chances, opportunities to provide material goods for themselves, are much higher than the lower class because they have successful families to support them in terms of money and education. On the other hand, people in the lower class may get trapped in their low-income status and not break free from their cycle of problems: the lack of education and financial security that passes on to the next generation. This chart shows the disparity between the upper and lower classes while the middle class loses ground.

For most U.S. worker, real wages have barely budged in decades

[image: Americans' paychecks are bigger than 40 years ago, but their purchasing power has hardly budged]

https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

Another issue that the working class face today is that their average hourly pay adjusted for inflation has barely increased after fifty-four years. The value of their hourly pay in 1964 is about the same compared to today which means that their average pay has increased while the buying powering of their income has not changed. For example, the amount of grocery a person could buy with two dollars and fifty cents in 1964 is the same amount a person could buy for about twenty dollars in 2018. If adjusted for inflation, wages only changed about two dollars. The value of U.S. workers’ hourly pay has hardly changed much over the years, but the top ten percentile’s income has significantly increased over the years. According to the conflict theory, few possible reasons for this inequality is that the rich elites control the economy and strongly influences the government, limiting the reforms to help the poor, and stratification separates the social classes and allows the rich to dominate over the poor. The rich becomes richer, while U.S. workers’ hourly pay stays the same. In contrast to the children of the lower class, the children of the top ten percent have a much greater chance of higher education which likely results in high paying jobs. Unfortunately, income inequality is not decreasing but expanding. Companies are not willing to increase their workers’ pay except to compensate for inflation that causes the gap between the upper and lower classes. To conclude, this graph generally shows the lack of wage increase of U.S. workers over the years since their wages’ actual buying power has barely increased over the years.

Key findings on the rise in income inequality within America’s racial and ethnic groups

[image: https://assets.pewresearch.org/wp-content/uploads/sites/3/2018/07/06152441/PSDT.07.12_economic_inequality-00-00-.png]

https://www.pewresearch.org/fact-tank/2018/07/12/key-findings-on-the-rise-in-income-inequality-within-americas-racial-and-ethnic-groups/

Although income inequality is increasing between social classes, some ethnic groups in America have greater income inequalities compared to others. As seen from the graph, the income difference between the upper and lower classes of Asians has grown significantly, but the income inequalities for other ethnic groups did not change as much. For Asian Americans during the 1970s, the upper class earned only six times more than the bottom ten did, while in 2016, the difference grew to 10.7 times more. The income inequality between the upper and lower classes for Asian Americans was the least in 1970 compared to other ethnic groups; however, the income disparity among Asian Americans has recently increased to a point higher than all other ethnic groups. They went from the least to the greatest with respect to income inequality. The top ten percent of Asian Americans earn about one hundred and thirty thousand dollars, while the bottom ten percent of Asians Americans only earn about twelve thousand dollars a year. Few possible explanations to this are that some Asians who immigrated over to the United States also brought their social status and wealth or came here for higher education. According to Max Weber, some Asian Americans might have greater life chances, the opportunities to gain material wealth. First, they might have business ties with their mother country which gives them opportunities to increase their wealth faster. Another possibility is that some Asian Americans have achieved a higher status through education which usually results in upper-levels incomes. On the other hand, the Asian Americans in the bottom ten percent might have come over through America’s generous immigration policy, but they might not have established a business or came from a good economic background. They get stuck in the bottom quintile and rely on social welfare. In the end, this graph represents the huge disparity in income between the upper and lower-class Asian Americans, and this may have been influenced by multiple factors like education, social background, and business connections.

The narrowing, but persistent, gender gap in pay

[image: The gender pay gap is narrower among young adults than among workers overall]

https://www.pewresearch.org/fact-tank/2019/03/22/gender-pay-gap-facts/

In addition to the income inequalities in different ethnic groups, women overall usually get paid lower than men in their particular field. According to the graph, female workers only receive eighty-five percent of what men get paid, while women ages twenty-five to thirty-six have a higher percentage of what men earn: eighty-nine percent. If a guy earned one-hundred thousand dollars at a corporation, a female worker in the same position might only earn eighty-five to eighty-nine thousand dollars. These graphs take into account all full time and part-time employees. In 2010, female workers ages twenty-five to thirty-six almost earned the same amount as men. This income inequality between men and women has decreased over the years, but their difference has not been resolved. Few key issues in the past were the level of education of women and their roles in the family. Ladies usually did not have college degrees and took care of the house. Recently, women have entered the workforce, and the income gap is closing because of their gain in educational levels. Higher education tends to increase opportunities to upper-level jobs; however, at some businesses, there is an invisible barrier called glass ceiling that still prevents the promotion of certain people because of their gender or race. Discrimination occurs at a company when a manager denies a promotion because of that person’s ascribed status. Some workers do not have a good work ethic which might result in lower pay, but women sometimes still find discrimination or a glass ceiling at work. The graph shows that female workers’ incomes still lag behind male workers, but income inequality is improving as time goes on.

Growing Partisan Divide Over Fairness of the Nation’s Tax System

[image: Widest partisan gap in views of fairness of tax system in at least two decades]

https://www.people-press.org/2019/04/04/growing-partisan-divide-over-fairness-of-the-nations-tax-system/

Last of all, the views of the federal tax system greatly vary among political party members. This graph shows the significant polarization of the two parties’ position on the tax system. Republicans usually feel that the tax system is fair, while Democrats find the tax system as unfair. Overall, fifty-two percent of the Americans surveyed think that the tax system is unfair, and forty-six percent of the them feel that it is fair. However, in 2019, the number of Republicans that think the tax system is fair shot up to sixty-four percent, while the percentage of Democrats who thought the system is fair dropped to thirty-two percent. Some Americans might feel that corporations or the upper class are not paying enough taxes or that heavily taxing the rich is a way to redistribute wealth. Democrats tend to view the tax system as favoring the top quintile and putting the weight of taxes on the poor or middle class. Republicans, on the other hand, prefer the current tax laws since they may benefit from the tax cuts. From the conflict perspective, the tax system today increases the disparity between incomes because the rich uses their power to influence tax laws which in turn will help lower their taxes. The federal tax system becomes a conflict between the rich and the poor as each class’ net income depends on how much they are taxed. A possible reason is that more low-income families are Democrats while higher income classes are Republicans. However, more research is needed to see why Democrats and Republicans vary in their views about the tax system. To conclude, this graph shows the sharp difference between Democrats and Republicans’ views of the tax system which may depend on their family background and income.

Cite this page

U.S. Income Inequality. (2020, Feb 14). Retrieved from https://papersowl.com/examples/u-s-income-inequality/

"U.S. Income Inequality." PapersOwl.com , 14 Feb 2020, https://papersowl.com/examples/u-s-income-inequality/

PapersOwl.com. (2020). U.S. Income Inequality . [Online]. Available at: https://papersowl.com/examples/u-s-income-inequality/ [Accessed: 22 Nov. 2024]

"U.S. Income Inequality." PapersOwl.com, Feb 14, 2020. Accessed November 22, 2024. https://papersowl.com/examples/u-s-income-inequality/

"U.S. Income Inequality," PapersOwl.com , 14-Feb-2020. [Online]. Available: https://papersowl.com/examples/u-s-income-inequality/. [Accessed: 22-Nov-2024]

PapersOwl.com. (2020). U.S. Income Inequality . [Online]. Available at: https://papersowl.com/examples/u-s-income-inequality/ [Accessed: 22-Nov-2024]

Don't let plagiarism ruin your grade

Hire a writer to get a unique paper crafted to your needs.

Our writers will help you fix any mistakes and get an A+!

Please check your inbox.

You can order an original essay written according to your instructions.

Trusted by over 1 million students worldwide

1. Tell Us Your Requirements

2. Pick your perfect writer

3. Get Your Paper and Pay

Hi! I'm Amy, your personal assistant!

Don't know where to start? Give me your paper requirements and I connect you to an academic expert.

short deadlines

100% Plagiarism-Free

Certified writers

We use cookies to enhance our website for you. Proceed if you agree to this policy or learn more about it.

• Essay Database >
• Essay Examples >
• Essays Topics >
• Essay on Taxes

Free Essay On Income Inequality in the United States

Type of paper: Essay

Topic: Taxes , Income , Inequality , Social Issues , United States , Politics , Business , Economics

Words: 1100

Published: 07/09/2021

ORDER PAPER LIKE THIS

Social and political movements, such as Occupy Wall Street, have drawn increased attention to income inequality in the United States. The assertions these movements build platforms on include the notion the income of the top socioeconomic groups continues to grow at a faster rate than the income of the middle and lower socioeconomic groups. If a small group already possesses a disproportionate amount of the nation’s financial resources, it is understandable why lower socioeconomic groups would react emotionally to the idea that said group is continuing to gain more. Compounding the problem is the evidence that states that the income of the lower socioeconomic groups is on the decline.

While the data supports the assertion that income inequality in America is on the rise, the real question is why income inequality is a pressing issue. Does the presence of income inequality lead to further problems, such as social unrest, stalled macroeconomic growth, and the need for government intervention? Is there a way to ensure that income inequality is minimized or even eliminated? Researchers seem to agree on the fact that growing income inequality can lead to both social unrest and stalled macroeconomic growth. What researchers tend to disagree on is whether income inequality can be reduced and eliminated through government intervention.

Given the fact that the United States’ economy primarily operates under the principles of capitalism, it is highly doubtful that a capitalistic market structure is optimal for the minimization of income inequality. Government intervention can accomplish some degree of income redistribution as long as both political parties compromise – a feat that has been more than difficult with increasing political polarization. In order to fully address and solve the problem of income inequality, the United States government and the country’s citizens need to reevaluate the effectiveness of capitalism.

A study on the prevalence of income inequality in the United States found that the average real income of the top one percent of tax filers increased from $534,264 in 1991 to $857,477 in 2010. The proportion of total income in the United States that the top one percent of earners held rose from 7.7 percent in 1973 to 18.3 percent in 2007. The share of household income for the top one percent from 42.6 percent to 50.2 percent between 1968 to 2001. In contrast, the share of household income for the bottom percent decreased from 4.2 percent to 3.2 percent during the same period (Jongsung and Tebaldi 1). These figures clearly illustrate the fact that the rich are becoming richer at the expense of the poor. Income inequality in the United States is simply not a theory; it is a clear fact. Those in the lower socioeconomic classes not only feel as though they are being exploited, but that the promise of the American Dream is a fraud.

Income data collected in each state in American revealed that income inequality was greater for nominal income versus real income. Nominal income represents income in current prices, while real income adjusts for price differentials between states (Ram 131). In other words, real income takes into account cost of living adjustments. For instance, it is well-known that housing costs substantially more in California and New York than in Nebraska or Wyoming. An annual income of $40,000 in Florida can be equivalent to an annual income of $100,000 in New York due to price differentials.

The data also reveals that nominal income inequality is less in 2010 than it was in 1989 between states, even though total income inequality in the country has been increasing since 1977 (Ram 132). What the data seems to be saying is that income inequality amongst the states is slowing or decreasing, while overall income inequality is on the rise. Soon the exact amount that an individual makes in the state of Nebraska will equal the amount that an individual makes in the state of California. The income one makes will not necessarily be adjusted for the cost of living differential between the two states, thereby increasing the real income inequity. Since it costs more to live in California, only those within the top socioeconomic tiers will be able to afford to live in the state.

Some economic experts propose a global wealth tax to help reduce income inequality, while others call for new economic policies under the current capitalistic structure. Increases in the amounts charged for rent on land and other assets has largely been responsible for the rise in income inequality, along with tax laws, education, monetary regulations, and increasing market dominance, according to economic experts (Diamond 390).

What these experts are failing to acknowledge is that the increase in income inequality is largely driven by greed. Those at the top are not satisfied with the percentage of income they have and therefore feel justified in charging more for the use of the resources they own. Unfortunately, the increase in prices and stagnation of wages has resulted in the economic exploitation of the middle and lower classes. Past government regulation has supported the efforts of the top earners and has compounded the problem.

The middle and lower classes have been unable to gain enough political influence to be able to stand up against the political lobbying groups arguing in favor of the private business sector. Rewriting the tax laws for the top socioeconomic classes and the business sector is only a start. The business sector needs to be educated on the long-term effects economic exploitation and inequality has. Without adequate discretionary income flowing through the middle and lower socioeconomic classes, the top classes and the business sector will not be able to be sustainable. While they can choose to horde more resources at the top, a balance between socialism and capitalism is needed to fix the United States’ income inequality issue.

Works Cited

Diamond, John. "Forum: Income And Wealth Inequality." National Tax Journal 68.2 (2015): 389-391. Business Source Alumni Edition. Web. 20 July 2015. <http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=103130621&site=ehost-live> Jongsung, Kim, and Edinaldo Tebaldi. "Trends And Sources Of Income Inequality In The United States." Journal Of Business & Economic Studies 19.2 (2013): 1-13. Business Source Alumni Edition. Web. 20 July 2015. <http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=99389508&site=ehost-live> Ram, Rati. "Real And Nominal Interstate Income Inequality In The United States: Further Evidence." International Advances In Economic Research 21.1 (2015): 131-132. Business Source Alumni Edition. Web. 20 July 2015. <http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=101149030&site=ehost-live >

Cite this page

Share with friends using:

Removal Request

Finished papers: 1011

This paper is created by writer with

ID 286704535

If you want your paper to be:

Well-researched, fact-checked, and accurate

Original, fresh, based on current data

Eloquently written and immaculately formatted

275 words = 1 page double-spaced

Get your papers done by pros!

Other Pages

Armed forces essays, conc essays, flagella essays, historicity essays, kinesics essays, nourishing essays, feedwater essays, phenyl essays, formability essays, therapeutic cloning essays, medical issues essays, zero tolerance policy essays, alan greenspan essays, bernanke essays, disinflation essays, asbestosis essays, example of essay on together we stand letter outline, environmental studies research paper 2, sustainability and interior design research paper, example of international equity markets course work, gasland documentary response movie review example, example of organized criminal business in the united states drugs research paper, prison furlough programs critical thinking example, mental health identification and mental health insurance research paper examples, have the growth and investments or lack thereof in this area been needed article review sample, research paper on critical success factors, aboriginal artists essay, the european union in the israeli palestinian conflict research proposal examples, forensic psychology and the law criminal profiling essay examples, example of doing business oversees etiquette in selected european countries report, john hopkins university essay admission essay examples, yom kippur essay example, memorandum creative writing example, good example of dual processing sleep and dreams essay, christian gospel essay, free zora neale hurston dust tracks on a road critical thinking sample, the divided spain from civil war to second world war essay, new ways research papers, lawrence research papers, diversity training research papers, frances research papers, traumatic experiences research papers.

Password recovery email has been sent to [email protected]

Use your new password to log in

You are not register!

By clicking Register, you agree to our Terms of Service and that you have read our Privacy Policy .

Now you can download documents directly to your device!

Check your email! An email with your password has already been sent to you! Now you can download documents directly to your device.

or Use the QR code to Save this Paper to Your Phone

The sample is NOT original!

Short on a deadline?

Don't waste time. Get help with 11% off using code - GETWOWED

No, thanks! I'm fine with missing my deadline

Home — Essay Samples — Economics — Economic Issues — Income Inequality

Essays on Income Inequality

Income inequality is a pressing issue that affects societies globally. As such, it is an important topic for academic discussion and analysis. When selecting an income inequality essay topic, it is crucial to choose a subject that is both relevant and interesting. The chosen topic should also allow for in-depth research and analysis. This will ensure that the essay is engaging, informative, and thought-provoking.

Income inequality is a multifaceted issue that has far-reaching implications for individuals and society as a whole. By selecting the right essay topic, students can explore various aspects of income inequality and its impact on different facets of life, such as education, healthcare, and social mobility. This allows for a comprehensive understanding of the issue and encourages critical thinking and discussion.

When selecting an income inequality essay topic, it is important to consider the student's interests, the availability of research material, and the potential for original analysis. Students should also consider the relevance of the topic to current societal and economic trends. Additionally, choosing a topic that allows for the exploration of different perspectives and potential solutions can lead to a more engaging and impactful essay.

Recommended Income Inequality Essay Topics

Income inequality is a prominent issue in society, and writing an essay on this topic can help to raise awareness and spark important discussions. Here is a list of income inequality essay topics to consider:

Economic Impact

• The relationship between income inequality and economic growth
• The impact of income inequality on consumer spending
• Income inequality and its effect on poverty rates
• The role of income inequality in financial crises
• Globalization and its impact on income inequality

Social Impact

• Income inequality and access to quality education
• The effects of income inequality on healthcare disparities
• Income inequality and its influence on crime rates
• The relationship between income inequality and social mobility
• Income inequality and its impact on mental health

Policy and Solutions

• Strategies to reduce income inequality through tax reform
• The role of minimum wage policies in addressing income inequality
• Universal basic income as a solution to income inequality
• The impact of social welfare programs on income inequality
• The role of education and skill development in reducing income inequality

Gender and Income Inequality

• The gender wage gap and its contribution to income inequality
• Income inequality and women's access to leadership positions
• The intersection of race, gender, and income inequality
• Gender-based discrimination and its impact on income inequality
• Policies and initiatives to address gender-based income disparities

Geographical Disparities

• Rural vs. urban income inequality: A comparative analysis
• The impact of income inequality on regional economic development
• Income inequality and access to resources in developing countries
• Income inequality in specific regions (e.g., Appalachia, the Rust Belt)
• The role of infrastructure and public services in addressing geographical income disparities

By choosing a topic from the above list, students can delve into various aspects of income inequality and contribute to the ongoing dialogue on this critical issue. Each topic provides ample opportunities for in-depth research, analysis, and the exploration of potential solutions.

The Relation Between The American Dream and The Income Inequality

The causes, consequences and solutions of income inequality, made-to-order essay as fast as you need it.

Each essay is customized to cater to your unique preferences

+ experts online

Gender and Race Based Income Inequality and Its Impacts on People

The issue of income inequality in europe, inequality for all: income inequality in the united states, the hot topic of income inequality in the united states, let us write you an essay from scratch.

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Social Policy Problems and Income Inequality

Payment discrimination in workplace in canada, my understanding of the reasons of poverty in the world, growing up in poverty determines the person's fate, get a personalized essay in under 3 hours.

Expert-written essays crafted with your exact needs in mind

How Laziness and Dependence on The Government Contribute to a Wage Gap

The legal dilemma behind equal pay for equal work in india, the call to increase minimum wage, overview of the issue of poverty in uganda, reasons why minimum wage should be raised, a study on scarcity as a worldwide issue and resolutions to combat it, how the irs income tax data fails as a method for measuring income inequality and poverty, analysis of negative impact of economic inequality, inequality as a wicked problem in australia, economic inequality vs economic growth, research of public views on government policies regarding income inequality, personal reflection on the topic of economic inequality, policy solution to income inequality in the uk, poverty and economic inequality: current american issues, income inequality in china: causes and prevalence, reflection on positive and negative aspects of economic inequality in america, the status of economic inequality in america, gender wage gap issue: equal pay for equal work, the way economic inequality affects societies, discussion of poverty and economic security, relevant topics.

• Minimum Wage
• Unemployment
• Real Estate
• American Dream
• Supply and Demand
• Industrialization
• Materialism
• Universal Basic Income

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

• Environment
• Information Science
• Social Issues
• Argumentative
• Cause and Effect
• Classification
• Compare and Contrast
• Descriptive
• Exemplification
• Informative
• Controversial
• Exploratory
• What Is an Essay
• Length of an Essay
• Generate Ideas
• Types of Essays
• Structuring an Essay
• Outline For Essay
• Essay Introduction
• Thesis Statement
• Body of an Essay
• Writing a Conclusion
• Essay Writing Tips
• Drafting an Essay
• Revision Process
• Fix a Broken Essay
• Format of an Essay
• Essay Examples
• Essay Checklist
• Essay Writing Service
• Pay for Research Paper
• Write My Research Paper
• Write My Essay
• Custom Essay Writing Service
• Admission Essay Writing Service
• Pay for Essay
• Academic Ghostwriting
• Write My Book Report
• Case Study Writing Service
• Dissertation Writing Service
• Coursework Writing Service
• Lab Report Writing Service
• Do My Assignment
• Buy College Papers
• Capstone Project Writing Service
• Buy Research Paper
• Custom Essays for Sale

Can’t find a perfect paper?

• Free Essay Samples
• Income Inequality

Essays on Income Inequality

Your income inequality essay is due but you haven’t even started? We will help you complete your essay on time. You can check some income inequality essay samples below to get a perspective on the subject of income inequality. Putting it simply, income inequality is something that concerns all of us – some people make more money than others. Income inequality is often based on objective reasons, such as people occupying different professions, having varying levels of education, abilities, and talents, working in different industries, coming from different starting points, etc. To an extent, income inequality can be motivational, but it can also cause social distress and tension. If you fear that income inequality essays are beyond your expertise, you can simply let us do the job for you! We write essays professionally, so your essays on income inequality will be in good hands.

Hello. I asked you about the units of the numbers in Excel + I asked about Gini coefficient. I went to the source, and I want to explain to you how to know the unit: 1. Units of Excel numbers: Numbers represent a unit. The unit depends on...

Economic inequality refers to the unequal distribution of household or personal income by certain members of a country's economy. Income inequality refers to the disparities in income between those who earn the most and those who earn the least in a given country. Since there is a substantial disparity between...

Words: 1087

Contemporary Concerns and Social Media Wanini (2016) describes contemporary concerns as those causes that begin to arise every day as the world participates in its activities. These concerns may include climate change, income inequality, and economic crises. When reading the two novels, 'Sharing is a Trap' and 'Get over it,' one...

Words: 1372

At the end of the 20th century, the distribution of household revenue in the USA grew increasingly unevenly. Inequality in income was considered a problem because it exacerbates other social problems (Meyers et al. 223). Some studies show that income inequality is a risk factor for children, in particular in...

Words: 1781

Found a perfect essay sample but want a unique one?

Request writing help from expert writer in you feed!

Select one (or more) sets of data and find out what kind of questions the data set should answer. When publishing, Identify the name of the particular collection of data, Distribution of world wealth. Describe the data forms and problems addressed by them. The website gathers and tracks data for...

Data about income patterns, income distribution in the US for households over the last 50 years are collected and reported here. The data demonstrate how the income of households has changed over the years. The statistics are equally representative of the relationship between a generation's wealth, health and welfare. The...

The wage gap between men and women is the disparity in earnings for different occupations that contribute to unequal pay between the sexes (Campos, J. Elizabeth, 2). Although studies suggest that the pay gap for women and men has decreased over the past decade, change has been slow, growing by...

Related topic to Income Inequality

You might also like.

• Income and Wealth Inequality in the US: Historical Trends, Causes, and Solutions Words: 2821
• Income Inequality: Causes and Impacts on Wealth Disparity Words: 1335
• Inequality in Income and Wealth Distribution: Janet Yellen’s Analysis Words: 579
• Education and Income Inequality in the United States Words: 2767
• Income Inequality in Modern Society Words: 889
• Misconceptions About Income Inequality Words: 1396
• Education and Income Inequality Relationship Words: 2764
• Financial Inclusion and Income Inequality Words: 2479
• Measuring Economic Inequality Words: 1653
• Changes and Causes of Income Inequality in the US: A Comprehensive Analysis Words: 2790

Linking Income, Wealth, and Inequality

Income inequality is one of the defining features of modern economies, including in the United States. According to Coady and Dizioli (2017), “rising income inequality over recent decades is a growing concern for policymakers worldwide” (p. 3). It is primarily determined by the uneven distribution of various material goods. In a market economy, income is distributed in the markets of different factors of production: labor, natural resources, the capital. The degree of possession of these resources determines the nature of the redistribution of benefits, which causes the problem of income inequality. The main reasons for inequality are unequal distribution of property, differences in educational level, skills, work experience, and other essential factors.

Wealth inequality is another prominent manifestation of the difference between various groups of people. Akin and Mirakhor (2019) state that “financialization has incomparably higher effects on wealth inequality compared to the income inequality” (p. 108). Compared to income inequality, it has different characteristics, but it also leads to social injustice. The main hallmark of wealth inequality in the United States is that most property and wealth belong to a small percentage of society. This leads to the fact that the general level of wealth of the biggest part of the population is not high enough. As a result, many people, even with high incomes, cannot afford to own particular objects and live decent lives.

One of the striking features of financial inequality in the United States today is the racial wealth gap. Although the modern world is diligently combating racism, it has not yet been fully eradicated, which causes multiple economic and other social problems. Many complications cause this gap at the moment. These include the insufficient level of education of many people of color, mistrust of employers, low-skilled labor, and other reasons. As a consequence, white people have much more opportunities to earn a high income and acquire wealth.

The problem of inequality can also be attributed to global stratification. This is a phenomenon that is determined by the deliberately different economic and social states of countries. The differences can also include the level of education, cultural development, science, and other areas. Each state is individual and unique concerning each of these aspects. Thus, it is almost impossible to achieve complete equality in the modern world in such a situation. In addition, “those who control the means of production also control and manipulate the social structure” (Thompson, Hickey, & Thompson, 2016, p. 287). One can name rich and poor countries; however, each has the characteristics that distinguish it from others. Consequently, representatives of various states are initially in different positions, and it is hard to achieve equality between them.

In particular, global stratification is closely related to economic inequality. Historically, countries are divided into rich and poor, developing and developed. Residents of many small states cannot find decent jobs with high wages. At the same time, people in wealthy countries have many jobs and income opportunities. Thus, this inequality can be noted throughout the whole world economic system. To eradicate it, unfortunately, a complete restructuring of society is necessary, which is not possible now. Undoubtedly, the modern exchange of goods and care of undeveloped countries has a significant effect on this issue. However, the world financial system still needs many adjustments to achieve totally correct and beneficial functioning.

Akin, T., & Mirakhor, A. (2019). Wealth inequality, asset redistribution and risk-sharing Islamic finance. Walter de Gruyter GmbH & Co KG.

Coady, D., & Dizioli, A. (2017). Income inequality and education revisited: Persistence, endogenity, and heterogeneity. International Monetary Fund.

Thompson. W. E., Hickey, J. V., & Thompson, M. L. (2016). Society in focus: An introduction to sociology. Rowman & Littlefield.

Cite this paper

• Chicago (N-B)
• Chicago (A-D)

StudyCorgi. (2022, April 12). Linking Income, Wealth, and Inequality. https://studycorgi.com/income-wealth-and-inequality/

"Linking Income, Wealth, and Inequality." StudyCorgi , 12 Apr. 2022, studycorgi.com/income-wealth-and-inequality/.

StudyCorgi . (2022) 'Linking Income, Wealth, and Inequality'. 12 April.

1. StudyCorgi . "Linking Income, Wealth, and Inequality." April 12, 2022. https://studycorgi.com/income-wealth-and-inequality/.

Bibliography

StudyCorgi . "Linking Income, Wealth, and Inequality." April 12, 2022. https://studycorgi.com/income-wealth-and-inequality/.

StudyCorgi . 2022. "Linking Income, Wealth, and Inequality." April 12, 2022. https://studycorgi.com/income-wealth-and-inequality/.

This paper, “Linking Income, Wealth, and Inequality”, was written and voluntary submitted to our free essay database by a straight-A student. Please ensure you properly reference the paper if you're using it to write your assignment.

Before publication, the StudyCorgi editorial team proofread and checked the paper to make sure it meets the highest standards in terms of grammar, punctuation, style, fact accuracy, copyright issues, and inclusive language. Last updated: April 12, 2022 .

If you are the author of this paper and no longer wish to have it published on StudyCorgi, request the removal . Please use the “ Donate your paper ” form to submit an essay.