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Inequality in America
Institutional Affiliation:
Inequality in America
American economy is complex and there is growing income and wealth inequality due to
unequal distribution of wealth and also bad redistribution policies. The trajectory is ever
increasing where the gap widens day and night as it goes unprecedented. Older people have
different and favorable economic fortunes than the lads and in particular the American economy
treats the older generation better than the young generation. Today`s generation are elites, well
educated, more productive but lag behind the old folks. For this reason the old generation is
opposed to redistribution. Suggestions have been made in regard to this such that the government
should have high income taxes on the rich but there are no policies in place to guide
Existing class divisions is also a driving factor for inequality growth as a result of racial
discrimination. The white people are wealthier than black families which mean they have more
buying power than their counterparts. They can afford to buy houses in higher income
neighborhoods. According to Joseph Stiglitz (Business economy, 2015) a well renowned
economist tells us some of the reasons that cause inequality; for instance, deregulation of
financial markets by the government, change in tax and changes in corporate structures. This
ends up affecting people`s lives and causes slower economic growth.
Both the democratic and republican administrations are to be faulted because they draft
and implement policies that accelerate inequality. Income expenditure is counteracted by the
government welfare programs and social security. Unfortunately transfer payments by the
government no longer go to the poor households. There is a paradigm shift by the government on
the expenditure program with their focus more on elderly people in terms of Medicare and Social
security. As Joseph vividly puts it, inequality is not inevitable since it is all about the choice we
make and the rules we lay down to structure our economy. In a good economic system wages
should go up and workers should be in a position to negotiate for pay rise.
Business economy. (2015, May 12). Joseph Stiglitz: rewriting the rules and American
inequality-Time. Retrieved March 01, 2016, from economy:
http://business economy.times

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