A discussion on income inequality in society

Conversely, one can have high income and low financial wealth if one has a large salary but spends it all immediately on consumption goods. On a more abstract level, the American system, including the lack of discussion of progressive redistributive policies, has always rested on a belief that economic mobility is not only possible, but more likely to occur in the US than elsewhere.

Income Inequality

However, inequality of opportunity, differing access to education and accumulation of education-related debt, as well as the more general difficulties of class mobility in a shrinking economy suggest, that the opposite is true. Those contain a whole variety of data most of which can be found in this piece and this one suggesting that most of the claims about rising income inequality are wrong, overstated, or ignore other evidence.

This is may be true, but this criticism is absurd coming from those who not only crafted policies of one-sided class warfare, but who spent years portraying low income Americans, particularly non-white ones as, morally suspect, lazy or unwilling to work.

If what bothers people about inequality is the assumption that the poor are staying poor, or getting poorer, then exploring the degree to which that is really true would seem essential to the discussion. The super-rich will turn their economic power into political power, often in ways that will redistribute resources to themselves and their friends.

More specifically, some seem to think the poor are poorer because the rich are richer. Those who raise this concern are really just complaining about cronyism, not inequality per se. Contributing Factors to Income Inequality Education is known to affect societal equality. The source of the problem is the redistributive state, which would get more powerful if those concerned about inequality got their policies passed.

There are plenty of ways to attack cronyism and to reduce the ability of the rich to turn wealth into political power that are not about forcible redistribution away from the rich or other policy questions that arise from inequality.

4 Questions to Ask When Debating Inequality

Again, readers interested in the data should consult the two papers linked at the very start. Family and social interactions impact earning potential. So clear the ground up front.

The Income Inequality Discussion

Are we talking about income, wealth, or consumption inequality? In countries that provide higher-quality secondary education across the economic spectrum, there is much less income disparity. Finally, even those who are skeptical of the arguments made by those concerned by inequality can agree that there has been some redistribution of wealth from poor to rich in the last few decades, thanks mostly to government policies that do favor the rich over the poor.

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This is also a flawed argument as a primary driver of income inequality is declining wages for the poorest Americansnot just massive wealth accumulation by the richest Americans. Consumption inequality is yet a third possibility. Recognizing this is a first step toward solving our economic woes, so it is no surprise that the resistance to even acknowledging this remains intense.

That is, they assume that economies are zero-sum so that if some are richer, those riches must have come from the poor. According to this view, in a free country, people make choices and live with the consequences. Stagnant wages also play a big role in inequality. There is much more competition for high-quality executive talent, which has driven salaries for executives higher relative to the level of generated productivity.

What exactly are the problems caused by inequality? And the gap between rich and poor on such measures has narrowed in the last several decades. Conservatives will, and already have begun to, argue that economic inequality is an unavoidable outcome of a free society. Those static comparisons of two years decades apart are static portrayals of a dynamic process.

Those concerned about inequality often argue as if the rich who are getting richer and the poor who are getting poorer are the same people year to year. Those concerned about inequality frequently start talking about how bad things are for the poor.

While most economists agree that the growth in disparity is attributable to unequal education, environment and social interactions, economists do not fully agree on the specific mechanisms that are driving the increase.

The emergence of these issues in recent years is largely a result of the economic crisis of and the growing realization that seeing a few citizens become extraordinarily wealthy is not really in the best interest of the country.

Even this well-known viral video does so. But this ignores the question of income mobility. Income inequality is increasingly the result of an unfree society, one where options are, for many, limited at a very young age. These strategies will likely include the normal red-baiting, focusing on social issues and racial politics that have been the handmaidens of one sided class warfare for many years, but will also evolve beyond that.

The source of the problem is the redistributive state, which arguably would get more powerful if many of those concerned about inequality got their favored policies passed.

Another argument is that income inequality that results simply from the rich getting even richer is not a problem because it does not really harm anybody. Powerful interests, not surprisingly, have a strong incentive to limit discussion and action on income and wealth inequality, and will pursue several strategies to achieve this goal.

The diminished influence of labor unions has also led to flat or declining wages among workers. So often these two issues get confused in discussions about inequality. The issue has become politically and economically divisive concerning its causes and acceptable solutions.Income inequality is crippling and dangerous to our country and every country.

The good news is that it doesn't matter how you close the wealth gap, through taxes, like Nordic countries, or by. 1.

Income Inequality and Social Mobility _____ 8 2. Global Inequality and Distribution of Income _____ 10 3. Change in Net Gini Index, – _____ 11 4.

Sep 01,  · News about Income Inequality, including commentary and archival articles published in The New York Times.

More News about income inequality. Aug 07,  · Income Inequality in the U.S. Is Rising Most Rapidly Among Asians.

Social and welfare issues

The gap in the standard of living between Asians near the top and the bottom of the income. Income inequality is increasingly the result of an unfree society, one where options are, for many, limited at a very young age. Another argument is that income inequality that results simply from the rich getting even richer is not a problem because it does not really harm anybody.

To benchmark and monitor income inequality and poverty across countries, the OECD relies on a dedicated statistical database: the OECD Income Distribution Database.

Due to the increasing importance of income inequality and poverty issues in policy discussion, the .

A discussion on income inequality in society
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