America is known to be one of the highest economies in the world but what many people do not know is that the number of poor people in the country is still on the rise. Even up until today income inequality in this country is still rising steadily. So for those who are interested to know, here are some facts about the income gap in America.
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, what is happening here is that the rich occupy a big amount of money from the country while the rest are left in poverty. The two classes are actually very high which means there are a lot of rich people and a lot of poor people. The middle class people on the other hand have a low share of the profits.
Now the OECD was able to do a study on this. In this study, they surveyed the income generated by eighteen different countries between 1975 to the year 2007 and how these countries distributed the money to their citizens. Now what they found out was that in the US, the majority of the wealth generated in the country were actually all hogged by the rich.
Now the reason as to why this is the case is simply because the US is a free market. Being in a very democratic country, the US supports the existence of a free market. Due to them being a free market, the wealth distribution among the people is not monitored by the government and the market is left alone to do whatever it wants.
Of course one will now tend to ask himself whether this is actually a good thing or a bad thing. Now the common argument in this situation is that the powerhouses like the CEOs and the firms are actually contributing to the economy because they are wealth generators. They will be able to contribute to a better economy through exports and would also contribute to bigger taxes for the government.
On the other side of the coin, some economists would argue that it is unhealthy because having a high poverty rate and unemployment. With all the wealth being wealth being tipped at the rich people, the poor people do not have much spending power. When this happens, the country will not be able to benefit from all the population which is bad for the long term.
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, what is happening here is that the rich occupy a big amount of money from the country while the rest are left in poverty. The two classes are actually very high which means there are a lot of rich people and a lot of poor people. The middle class people on the other hand have a low share of the profits.
Now the OECD was able to do a study on this. In this study, they surveyed the income generated by eighteen different countries between 1975 to the year 2007 and how these countries distributed the money to their citizens. Now what they found out was that in the US, the majority of the wealth generated in the country were actually all hogged by the rich.
Now the reason as to why this is the case is simply because the US is a free market. Being in a very democratic country, the US supports the existence of a free market. Due to them being a free market, the wealth distribution among the people is not monitored by the government and the market is left alone to do whatever it wants.
Of course one will now tend to ask himself whether this is actually a good thing or a bad thing. Now the common argument in this situation is that the powerhouses like the CEOs and the firms are actually contributing to the economy because they are wealth generators. They will be able to contribute to a better economy through exports and would also contribute to bigger taxes for the government.
On the other side of the coin, some economists would argue that it is unhealthy because having a high poverty rate and unemployment. With all the wealth being wealth being tipped at the rich people, the poor people do not have much spending power. When this happens, the country will not be able to benefit from all the population which is bad for the long term.
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.
About the Author:
Don't miss the opportunity to learn about the income gap in America with the help of interesting articles that are published on our site. For more info, review all the details at http://www.next-culture.net today!
Keine Kommentare:
Kommentar veröffentlichen