20Mar

The Alarming Reality of Wealth Inequality: Exploring the Widening Gap in Median Income and Its Impact on America's Youth

Introduction

In terms of wealth inequality, it is not just about how much a country has but how it is distributed within society. The concept of financial inequality refers to the disparity between the wealth of a specific group or society and that of other individuals. Wealth includes all the resources and assets acquired through employment, investments, rent, and royalties. Economic inequality can also occur through income, wealth, or pay. There are two types of economic inequality: income and pay inequality. Income is the difference between what an individual earns through their employment and what they receive from their investments, savings, and rent. When there is too much economic inequality, children are less likely to have opportunities to succeed. Although the level of economic inequality varies across different countries, the US is currently experiencing a significant gap in wealth ownership.


Thesis statement

Wealth inequality is at historic highs, and there is a widening gap in median income between the rich and poor . As the gap between rich and poor continues to grow, wealth inequality has become our era's defining political and social issue. As a result of this growing gap, children in America live in poverty at twice the rate as those from other developed nations.


Factors leading to wealth inequality

The Industrial Revolution has rendered many people unemployed as their skills are no longer relevant to technological advancements. As a result, the gap between the average worker and company owners has widened. Today, computers and machinery are capable of performing a lot of the tasks that people used to do. In manufacturing and packaging, computerized machinery can perform better than human labor. This has led to a reduction in the number of jobs that are related to this industry. As a small portion of society owns much capital, they can exert control over the company's operations.


Wealth and the more significant part of the economy are the factors that determine the income gap between the unemployed and capital owners in the US. There is a need for skilled and unskilled workers to operate new equipment and machines. Due to the rightward shift in workforce demand, the wage difference between unskilled and skilled workers has increased. The increasing labor demand and supply disparity reflect how technology affects the economy . It has led to a reduction in the wealth ownership of capital owners.


Proposing discussion

Politicians may have the power to raise taxes on the wealthy, but it will not reverse the growing disparity in income distribution . Wealth distribution is not about taxes. It is about what gets done with those taxes, mainly how they are spent. Economists have predicted that wealth inequality would increase with technology, but it is time to find ways to reduce wealth inequality. Taxing wealth rather than income would generate more revenue, but more importantly, it would be a fairer way of distributing the wealth since it is taking from people who have it and giving to those that do not. Also, increasingly well-off people pay less in taxes, so there is even less money to be spent on things like schools, roads, and hospitals which support the middle class and poor. One of the reasons this scheme is not being tried more often is that politicians do not want to give away what they believe is their power.


Budgetary control is why the United States has become prosperous and has not fallen behind other developed countries. However, this power allows politicians to be corrupt and inefficient, so, understandably, many want to preserve it for themselves. The benefits of this plan are that it makes politics more democratic and fairer because instead of money being given back to the people who earned it, people with more income would be taxed for their wealth. This also means that a more significant amount of income would be spent by the wealthy instead of hoarded. Furthermore, economists have predicted that wealth inequality will increase as technology advances, but not like this.


Counterargument

The failure of people to share the resources and opportunities available to them is a reflection of the inadequacies of capitalism. Despite the various positive developments during the proletarian revolution, the gap between the rich and poor widened. According to Lyon, a progressive tax system would help ensure that the higher income bracket would pay taxes according to their earnings. Therefore, government agencies must develop strategies that can help address the economic inequality between the rich and the poor. In most societies, inequality is practiced in different ways. The concept of the rich getting richer while those from the poor continue to lose is not just a cliché but has a deeper theoretical basis. Wealth concentration leads to accumulating only a few hands while society requires more resources. The concept of inequality reflects the world as it currently is. It is expected that the effects of this situation will continue to affect the children of the future. As a result, the government and society must work together to address the issue.


Conclusion

In conclusion, capitalism has proven to be the most successful economic system in history. However, this system has disadvantages, such as inequality and lack of democracy. The adverse effects of inequality extend beyond a few individuals to future generations as inequalities affect a society's economy. The best way to reduce inequality is by implementing measures promoting equality and justice. The societies in which capitalism has been implemented have been able to minimize the effects of inequality and continue to develop their economies.


Inequality is common in most societies, and its adverse effects appear inevitable . Some people argue that inequality is acceptable as long as it follows the principle of meritocracy. They believe that capitalism has improved the living conditions of many people in the world; therefore, inequality remains justified. However, this view received criticism from others who believe that society should not allow a few people to hoard all their wealth. Instead, there should be several measures taken by a country to reduce income inequality.


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