Causes Of Income Inequality - 999 Words

Income inequality has affected American citizens ever since the American Dream came to existence. The American Dream is centered around the concept of working hard and earning enough money to support a family, own a home, send children to college, and invest for retirement. Economic gains in income are one of the only possible ways to achieve enough wealth to fulfill the dream. Unfortunately, many people cannot achieve this dream due to low income. Income inequality refers to the uneven distribution of income and wealth between the social classes of American citizens. The United States has often experienced a rise in inequality as the rich become richer and the poor become poorer, increasing the unstable gap between the two classes. UC†¦show more content†¦Many historical theories lay a foundation that helps prove income inequality is necessary. Social Darwinism is a collection of theories that explain why the rich get richer, while the poor become poorer. Social Darwinists generally claim that the strong and successful people should see their wealth and power increase while the weak and unmotivated should see their wealth and power decrease. This is an excellent explanation for the cause of income inequality and why it shouldn’t be stopped. Wealth can sometimes be a direct result of the hard work and dedication of a person that is motivated to become successful in life. While most people may work as hard as they can and only make an average income, there are the few exceptional cases where people can prosper and rise to great economic stability. For all other citizens, the reality is they may be motivated and driven to become successful just like everyone else, but can only manage a low or middle-class job. This reality provides a reason for the inequality in incomes; not every citizen is capable of the same amount of work and therefore they get placed in different jobs with different salaries. Income inequality also exists because people fail to take advantage of equal economic opportunities. President Barack Obama states, â€Å"While we don’t promise equal outcomes, we’ve strived to offer equal opportunity.† If we disregardShow MoreRelatedWhy The Income Inequality Affects The Health Of People Essay1695 Words   |  7 PagesIncome inequality also causes obesity however; we mostly blame individuals for being obese. Being obese can have a serious impact on mental and physical health. it is an illness that is associated with stereotypes. The biggest one is â€Å"if poor people become obese they cannot be not poor†. People in this mentality also exclude the structural and social conditions that cause illnesses such as obesity. Social life affects the health of people, especially the socioeconomic level. How much you earn monthlyRead MoreThe Effects of Wealth Inequality in the U.S.1484 Words   |  6 PagesAnthony Giovenco Political Science Inequality Paper 12-18-14 The Effects of Wealth Inequality in the United States Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health andRead MoreSocial Inequalities Within New Zealand Essay1322 Words   |  6 PagesThis essay will be discussing the social inequalities within New Zealand. These inequalities can include unequal income, education and healthcare. Through extensive research of academic resources, I will be discussing how educational, family, social and political factors contribute to the development of these inequalities. I will also be providing a line graph that shows the unequal income between classes and a second line graph that demonstrates the difference in student success between high decileRead MoreIncome Inequality Of The United States889 Words   |  4 Pagespercent of total income, while the poorest fifth received about 3.2 percent† (McConnell). There are many sources of income inequality that effect poverty in the United States and the role that discrimination plays in reducing and increasing wages for different people and how the people of the United States are affected by it. The average household income in the United States is, in fact, one of the highest in the world. Unfortunately, does not provide information about income inequality. There are twoRead MoreEconomic and Social Costs of Inequality in Australia785 Words   |  4 Pagessocial costs and benefits of inequality in distribution of income in Australia. Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income. Income inequality can lead to an increase in theRead MoreFactors That Determine The Quality Of Health And Wellbeing Essay1666 Words   |  7 Pagesindividual factors control the societies health. Income inequality is one of the leading determinant for our health. The effects of income inequality on health maybe understood by examining some social mechanisms, such as public education and healthcare, structural violence, disruption of social cohesion and social capital; and individual risky behaviors. (Kawachi and Kennedy, 1999) My topic is income inequality and health because access to adequate income have a significant effect on people’s healthRead MoreIncome Inequality in the United States Essay788 Words   |  4 Pagesof all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequalityRead MoreWhy Does Income Inequality Exists?1442 Words   |  6 Pages- - - â€Å"WHY DOES INCOME INEQUALITY EXIST?† Submitted to: - Submitted by: - - - - 4. Why does income inequality exist? Income inequality, also known as economic inequality or wealth and income differences typically refers to inequality among individuals and society, but it can also refer to disparity among countries. There are many reasons for this phenomenon to happen within the societies, most of them are often inter-related. However, we could say that the most importantRead MoreThe Inequality Of Income Inequality1229 Words   |  5 PagesIncome Inequality Income inequality has been a major concern around the world, and it mainly links to how economic metrics are distributed among individuals in a country. Economists generally categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed in their studies that inequality has drawbacks that lead to social problems. This is because income inequality and wealth concentration can hinder or delay long term growth. In 2011, International Monetary Fund economistsRead MoreIncome Inequality in the United States and France648 Words   |  3 PagesIncome Inequality is â€Å"The unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population.† (Investopedia). Some believe income equality is the biggest problem of the 21st century, President Obama believes it to be â€Å"the defining challenge of our time† (white house). Some economist believe that increase inequality has a correlation effect with higher rates of health