Democracy in America |
Wealth Inequality in america
Is this country turning into Plutocratic Government?
It has been said that we are living in the second Gilded Age. A name given to the 19th century by Mark Twain meaning the period that was “glittering on the surface but corrupt underneath.” The wealth inequality is hitting a record high.
The share of wealth that is obtained by the top 0.1 percent has almost reached what it was in the 1920’s, what we called the Roaring Twenties, a period of economic prosperity.
This wealth however, was only affecting a minuscule percent of the country’s population. With this comes a great increase in income and wealth inequality in the United States. Although there is a difference between the two, they are connected and depend on each other.
The share of wealth that is obtained by the top 0.1 percent has almost reached what it was in the 1920’s, what we called the Roaring Twenties, a period of economic prosperity.
This wealth however, was only affecting a minuscule percent of the country’s population. With this comes a great increase in income and wealth inequality in the United States. Although there is a difference between the two, they are connected and depend on each other.
Wealth is the total assets owned by a person. This includes, homes, pension savings, bank accounts, and net of all debts. Income on the other hand, is purely the money one makes. Wealth can be earned or saved, but it can also be inherited, which is where the big difference comes in. The families with money remain at the top of the economic pyramid because their money gets passed down through generations. According to a video on wealth inequality in america, the top 1% owns about 40% of the country’s total income. The bottom 80% owning an alarming 7%. These numbers have only been getting worse in the past twenty to thirty years.
The reasons for this drastic surge in wealth inequality comes from less progressive taxes and the changing job market, which is forcing many blue collar workers to compete with cheap labor abroad. Along with globalization, technology has been a lending hand to the suffrage of the working class by turning well-paid jobs into unnecessary ones. An article by Matt O’Brien in the Washington Huffington Post titled The Poor used to have the Most Opportunity in America. Now the Rich Do, speaks on the issue of economic problems that have led to the rise of wealth inequality. Matt O’Brien says, “But most disheartening is that, more often than not, policy has made all this worse. Whether it's tax cuts for the rich, financial deregulation, or de-unionization, the government has heaped the most help on the only people who are still doing well.” The government has an enormous responsibility when it comes to the distribution of wealth in our country. There is much discrepancy over how much power the government should have over economy. Some believe that they already do too much and their role should be limited, while others believe the opposite.
Fair redistribution of wealth is one way to bandage the inequality for the time being. Instead of cutting taxes on the rich, who can easily pay the dues, the government should cut taxes on the poor. There are people in the lower class who struggle to pay their taxes every month. This leads to debt and inequality.
Fair redistribution of wealth is one way to bandage the inequality for the time being. Instead of cutting taxes on the rich, who can easily pay the dues, the government should cut taxes on the poor. There are people in the lower class who struggle to pay their taxes every month. This leads to debt and inequality.
A U.S. Supreme Court Justice, Louis Brandeis, said ““We can either have democracy in this country or we can have great wealth concentrated in the hands of a few, but we can’t have both.” This coincides with the arguments between Thomas Jefferson and Alexander Hamilton on the structure of the U.S. financial system. In Kevin Phillips’ book Wealth and Democracy, this relationship was discussed. Kevin Phillips says Thomas Jefferson’s fear of the erosion of democracy is coming true. Jefferson feared that if a proper system of checks and balances, along with other financial aspects, were not set in place than the vision of democracy would soon crumble. Phillips concludes by stating that our country is moving towards plutocracy governed by Wall Street and big businesses. In a plutocracy the only people who have a voice are in the top 1%. However, then we are faced with the problem of the other 99% not getting a fair say in decisions made. That eliminates the initial idea of every person in a democracy being equal and having a voice.
In the words of James Baldwin, “Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor.” It is the duty of this country to initiate a repair the system of wealth and equality. |