The Difference between Income and Wealth and Definition of "Power Elite"

Social Sciences
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Q&A
Describe and explain the difference between income and wealth.
Wealth is determined by the money and material goods a person owns. Income is what a person earns for a given time. Wealth is desired by people. It is the net worth of a person. In other terms, it represents the value of all his assets, for instance, personal property, money, real estate among others. Wealth is the outcome of an individual's labor. It satisfies all their wants and needs. Income is a representative of what a person earns. It is regarding cash flow. Wealth is what a person owns. The relationship between the two is that one leads to the other if adequately utilized. Income when saved it leads to the accumulation of wealth. Income is usually expressed in monetary value, and it has got different names depending on the duration, for instance, salary, wages, rents, and profits among others.
C. Wright. Mills was famous for coining the term “Power Elite.” What does he mean by the term?
Power elite according to C. Wright Mills is a small group of people who are tightly knit and have a significant influence on America's policymaking. This group of people's actions and opinions affect the policymakers' decisions. The members of this group include; government, intellectual, corporate, bureaucratic and military elites.
Since the 1970s, the middle-class population shrank and the gap between the rich and poor widened. Read textbook page 256 to 259 and provide four explanations for this phenomenon (hint: changes in the job market, in college education, in family structure, and in the gendered labor market).
The causes of the shrinking of the middle class and the widening of the inequality gap were inequalities in the labor market, change in the college education, trade and globalization and finally, institutionalization in the US. The sharing of the labor income declined, the median wages were stagnant, the participation of labor force was falling, and the four constitute the reasons for the inequalities in the labor market. The change in college education was intertwined with the advancement in technology. Most jobs required skills in technology and high educationa...