It is common knowledge that america is one of the superpowers in the world and has one of the biggest economies. What most people do not realize to see is that the income gap in america is really big even if the country is seemingly very prosperous. Here are some facts and information that would be discussing this economic issue.
Now before discussing about this issue, it is very crucial to first have a clear understanding of the income gap. Now this gap is known as the inequality of the wealth distribution among the people that are in the country. Now when one would discuss about this issue, he would be looking at how much each class would be getting.
Now in America, it can actually be seen that the rich are clearly hogging all the money that is circulating in the country. It is for this reason that there are rich people as well as super rich people and a lot of slum areas in the country. Of course as for the middle class, they also get a share of the wealth generated by the country but most would still go to the rich.
Now of course in order to study this, economists studied the wealth generated by several countries. They take a sample of eighteen countries and studied how the distribution of wealth are for these countries ranging from the year 1975 up to the year 2007. Now they were able to conclude from the results that the United States was the country wherein the rich benefited the most.
In order to know why this is the case, one has to take a look at the active US market. Now it is common knowledge that the market of this country is a totally free market as it is a democratic country. This means that the wealth that is being generated by the people is not really monitored as the government would have little involvement with the market.
Of course this would raise the age old question as to whether this is actually a good thing or a bad thing for the country in the long run. Now most people would argue that people should earn just as much as they would work because it is fair. If a person would get their fair share of profits, then they will actually be more motivated to work and their spending power will increase.
Of course there is also the other side of the story which claims that a high rate of poverty or unemployment will not be good for the economy. Now the thing about this is that with an unemployment rate, the people will not have much spending power. Of course when this happens, the country will not be able to get taxes from everyone.
Now by taking a look at some of the issues that would stem out from this one issue, it can be seen how this problem would affect the country. Now there are still those who believe that being fair is good for the country. Now there is also the other side that believes that the unemployment rate will stop the economic growth in the future.
Now before discussing about this issue, it is very crucial to first have a clear understanding of the income gap. Now this gap is known as the inequality of the wealth distribution among the people that are in the country. Now when one would discuss about this issue, he would be looking at how much each class would be getting.
Now in America, it can actually be seen that the rich are clearly hogging all the money that is circulating in the country. It is for this reason that there are rich people as well as super rich people and a lot of slum areas in the country. Of course as for the middle class, they also get a share of the wealth generated by the country but most would still go to the rich.
Now of course in order to study this, economists studied the wealth generated by several countries. They take a sample of eighteen countries and studied how the distribution of wealth are for these countries ranging from the year 1975 up to the year 2007. Now they were able to conclude from the results that the United States was the country wherein the rich benefited the most.
In order to know why this is the case, one has to take a look at the active US market. Now it is common knowledge that the market of this country is a totally free market as it is a democratic country. This means that the wealth that is being generated by the people is not really monitored as the government would have little involvement with the market.
Of course this would raise the age old question as to whether this is actually a good thing or a bad thing for the country in the long run. Now most people would argue that people should earn just as much as they would work because it is fair. If a person would get their fair share of profits, then they will actually be more motivated to work and their spending power will increase.
Of course there is also the other side of the story which claims that a high rate of poverty or unemployment will not be good for the economy. Now the thing about this is that with an unemployment rate, the people will not have much spending power. Of course when this happens, the country will not be able to get taxes from everyone.
Now by taking a look at some of the issues that would stem out from this one issue, it can be seen how this problem would affect the country. Now there are still those who believe that being fair is good for the country. Now there is also the other side that believes that the unemployment rate will stop the economic growth in the future.
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