Income Inequality in the US: The Effect of Growing Inequality in the Last 50 Years

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Income Inequality in the US: The Effect of Growing Inequality in the Last 50 Years
I Statement of Problem
Income inequality is a growing problem in the U.S. It refers to the extent to which income is unevenly distributed among the population in the U.S. Since the 1970s, inequality has increased significantly. The income received by the higher income households has risen drastically. The richest Americans continue to reap disproportionally from the growth of the U.S. economy while at the same time the wages paid to the workers have failed to keep the same pace. The poorest half of the population in the U.S. has experienced a steady decline in the amount of income, with the top 1% accruing more wealth. One-quarter of the workers in the country make less than $10 per hour (Pew Research Center np). As a result, America has such individuals having income that is below the federal poverty level. A majority of the individuals who earn less than $10 per hour are those who wait on others like cashiers and fast food workers. America’s top 10% have an average income that is none times as much as the bottom 90%. With income inequality, the bottom 90% is unable to enjoy the proceeds of the economic growth that American has experienced over the years. The issue of income inequality has led to the emergence of two opposing views. On the one hand, there are those who believe that income inequality poses challenges to the growth of the economy and improvement in the quality of life. On the other hand, there are those who see nothing wrong with the growing income inequality.
Political Aspect of Income Inequality
Income inequality reduces political equality in the U.S. through various ways. Firstly, it increases the resources available to the rich relative to the low-income earners (Houle 1505). The rich members of the society have access to resources which enables them to determine the political affairs of the country. Secondly, it widens the gap in policy preferences between the rich and the poor. While the low-income earners would prefer an increase in taxation among the rich, the rich prefer to be given tax cuts to make more investments. Thirdly, income inequality reduces participation especially among the low-income earners (Houle 1507). Individuals who earn less income in the U.S. feel that they cannot influence the political decision of their country. Some tend to shy away from political issues. Lastly, income inequality has adverse effects on democracy. In the U.S., income inequality threatens the health of democracy because political and economic power is in the hands of a few elites.
The Stakeholders
The main stakeholders in the issue of income inequality include Congress, businesses and workers. The majority of the blame on the rising rate of inequality can be blamed by the inability of Congress to take action. The existing loopholes allow the rich to build and maintain their wealth, which they pass down to their generations. Congress has the power to enact laws aimed at ensuring that that the income gap between remains at an acceptable level. Businesses have a role to play in addressing the issue of income inequality. They can ensure that workers do not earn below ...